When you stake crypto, such as Bitcoin or Core, your tokens are sent out of your wallet to a smart contract or staking mechanism.
This process temporarily removes the tokens from your wallet’s balance but does not mean the tokens are gone. Instead, they are actively earning rewards while being securely held in the staking contract.
You retain ownership of these tokens and can reclaim them when the staking period ends (or immediately if the protocol allows).
Here are a few key points to understand:
Token Delegation: Staking is like delegating your funds to a contract to perform tasks like securing a blockchain network or participating in governance. While the tokens leave your wallet’s balance, they are still yours.
Viewing Active Stakes: In Element Wallet, you can track your staked funds under the Earn page. This helps you monitor staking activity and rewards.
Core vs. Bitcoin Staking: Core staking does not involve time locks, meaning you can unstake your tokens at any time. Bitcoin staking, however, has a time lock—your funds are inaccessible until the lock expires.
Helpful Notes on Wallet Behavior During Staking:
Balance Display: After staking, your wallet balance reflects the available (unstaked) funds only. This can confuse users who may think their funds are lost. Remember, the funds are simply locked in staking.
Transfers and Availability: Staked tokens are not transferable until unstaked, as they are committed to a contract. Plan accordingly if you anticipate needing those funds.
Understanding staking is key to maximizing rewards while ensuring you remain confident about your crypto’s safety and accessibility.
If you have further questions, our support team is here to help!