How to acquire GTU to start baking on Mainnet

Node
1

Hi,

I missed all the incentivised trials, but would like to see what baking is like on Concordium Mainnet. Apparently this requires “some” GTU to start. Is there anywhere which shows the economics of baking, and anywhere I can acquire GTU to start? What is the minimum amount to start and what is the minimum amount to be economically viable? GTU does not seem to be listed on any exchanges I have looked at.

2

Hi Reynoada,

To start baking you need to stake a minimum of 14000 CCD (the new name for GTU). Currently, it is possible to buy CCD on switchere.com. There is also an airdrop happening where you can get some CCD for free on our telegram channel. However, CCD is not yet listed on exchanges, but will be soon.

Currently, it may not be worthwhile to become a baker with a relatively low stake. With the minimum 14k stake, you would expect to bake a block approximately 8 times per year right now. Currently the earnings from baking a block are around 268 CCD plus a share of the transaction fees. (Note that this is subject to change as CCD start to be distributed publicly and once listing takes place. Your earnings will depend on your own stake relative to the stake of all other bakers.) Our roadmap for the Sirius release has delegation, so you will be able to earn rewards without running a baker yourself.

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3

Can you explain this further? would love to get involved as well. Where can you read more?

4

I’m not sure the specification document is ready for publication right now. However, we’re working on the implementation now and I can give you a few bullet points, bearing in mind these are subject to change:

  • An account can be a baker, or choose to delegate to a baker (or neither).
  • The stake of the baker is based on the combination of the capital of the baker’s own account and the capital delegated to it, but with limits on the total stake and the ratio of the baker’s capital to delegated capital.
  • Rewards are paid to pools based on transaction fees, block baking and finalization (if a baker is eligible to participate in finalization), with the latter two being funded by minting (which is at a fixed percentage rate).
  • The rewards in a baker’s pool are paid out (once per day) to the baker and the delegators in proportion to their capital, but with the baker getting a percentage commission.
  • The commission rates are likely to be fixed at first for all bakers, but may be allowed to vary later.
  • Instead of delegating to a specific baker, an account may delegate to the L-pool. Delegators to the L-pool earn interest similar to delegators to a particular baker, but with a higher effective commission rate.
  • Capital that is staked or delegated cannot be spent and is subject to a lockdown period before it can be released.
  • There is no plans for slashing stake, but we plan to introduce jailing for bakers that engage in double signing.
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5

Very interesting. Thank you very much for sharing. Which channel would be the best to keep updatet on this topic?

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6

Hi Vinster,

You can sign up to our monthly newsletter at https://concordium.substack.com/
It might also be worth following our blog at Concordium – Medium.
I am sure we will create some explanatory posts about delegation once we are closer to the release.

Enjoy your holidays!
/ Kasper

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