Why Becoming a Baker on Tezos is a Good Idea

With the ease of delegating your tez, a lot of people get the impression that becoming a baker (validator) on Tezos would be too hard and not worth the “hustle”. Bakers on Tezos play a pivotal role in securing the network, validating transactions, and participating in the governance of the blockchain.

In this article, we look into the reasons why becoming a baker on Tezos is not only an attractive venture but also a chance to contribute to an ecosystem that values decentralization, transparency, and community involvement.

Empowering the Network #

Tezos operates on a consensus mechanism known as proof-of-stake (PoS), where bakers probably have the most important role of the network as they are the ones that keep the chain secure and alive. By becoming a baker, you become an indispensable pillar in the foundation of the Tezos network.

Your participation not only strengthens the security, reliability, and integrity of the entire ecosystem, but also contributes directly to the growth and success of Tezos- something that should be important for everyone in the Tezos ecosystem whether they are developers, artists, collectors, or even simple users and holders that believe in Tezos and enjoy using it.

Attractive Rewards #

As a solo Baker (baking just for yourself), you have the opportunity to earn staking rewards through block rewards (~6% per year) and gas fees that with the rise of NFTs and popular drops we have seen cases where even small bakers get huge rewards from the MEV fees.

On top of that, if you decide to become a public baker, you can accept delegations up to 10 times of your stake and profit from the fee you charge your delegators for staking their coins. With the available tools for attracting delegators and distributing their rewards, being a public baker is not as hard as you might think.

Low Barrier to Entry #

Compared to other blockchains, Tezos has a really low barrier to enter the network as a validator. You don’t need expensive equipment as both the hardware requirements and the amount of tez you need to start baking are pretty low.

More specifically you would need an average PC (see specifications here) and 6000 tez staking balance to get the baking rights. Note that the staking balance refers to the total amount of your own tez plus the tez other people delegate to you. So for example you could have 1000 tez of your own and get another 5000 tez delegated to you by others and you would have enough to get baking rights.

In that sense, if you have been thinking to become a validator for a blockchain network, Tezos would be a great choice as not many blockchains are as inclusive as Tezos.

Participating in Governance: #

Tezos stands out for its unique form of on-chain governance. As a baker, you are able to influence the networks’s decision-making process directly. By participating in voting, proposing, and supporting protocol upgrades, while actively engaging in rigorous debates- you have a voice that shapes the future direction of Tezos.

This on-chain governance model empowers every participant by ensuring their perspectives are not only heard but also actively considered. Bakers are the main actors of this process. It’s an opportunity to be an active agent of change within a network that values decentralized decision-making.

Learning and Skill Development: #

Tezos, renowned for its flexible and upgradable nature, fosters a culture of innovation at its core. As a baker and through your involvement in block creation, validation, and endorsements you’ll develop a deeper understanding of how decentralized networks operate, including the mechanics of consensus algorithms. You’ll also gain hands-on knowledge of cutting edge blockchain technology through the innovative upgrades that Tezos constantly implements. The constant changing nature of Tezos from its upgrades will keep you on your toes and your blockchain knowledge razor sharp.

From the potential to actively participate in the governance and decision-making processes of the network, becoming a baker offers a unique chance to be at the forefront of a revolutionary technology. As Tezos continues to grow and attract more users and developers, now is the perfect time to get involved!

Whether you are a blockchain enthusiast, an artist minting NFTs, or even a simple tez holder that believes in the values Tezos represents, consider exploring the possibility of becoming a baker and contribute to its growth and success. Embrace the opportunity to shape the future of blockchain technology by becoming a Tezos baker today!