How does AutoStake workAutoStake is a feature that enables delegators in the Cosmos Tendermint ecosystem to grant permission to a validator the responsibility to re-stake rewards on their behalf.

The permission granting process is implemented using the Keplr wallet’s permission system. This system allows delegators to grant specific permissions to a validator, ensuring that the validator only has access to the necessary functions to carry out the re-staking process. The validator is unable to transact with the delegator’s wallet in any other way.

To enable AutoStake, delegators must connect their wallet to the validator and grant the necessary permissions. The process for doing so will vary depending on the specific implementation by the validator, but typically involves a simple and secure authorization process.

Once AutoStake is enabled, the validator will handle the process of re-staking rewards on behalf of the delegator. This automation streamlines the staking experience, freeing delegators from the hassle of manual transactions and reducing the risk of human error.

With AutoStake, instead of cashing out staking rewards earned, you can automatically reinvest them back into the network, thereby increasing the size of their stake. This helps to create a self-reinforcing cycle where rewards earned from staking are automatically used to increase the size of the stake, which in turn leads to even more rewards being earned in the future. This can make staking a more attractive and profitable option for users, as their returns can compound over time.

Overall, the AutoStake feature in Cosmos Tendermint provides a convenient and effective way for users to maximize the benefits of staking and participate in the network’s consensus mechanism. By making it easier and more profitable to stake, AutoStake can help to increase network adoption, encourage more users to participate in consensus, and ultimately help to secure the network. Additionally, by compounding rewards over time, AutoStake can provide a stable and growing source of income for stakers, making it a valuable feature for those looking to grow their assets over the long term.

It is worth noting that AutoStake is just one of the many features offered by Cosmos Tendermint, which is a cutting-edge blockchain platform that provides a fast and scalable solution for decentralized applications. With its focus on security, scalability, and interoperability, Cosmos Tendermint is a leading player in the blockchain space and offers a robust and user-friendly environment for building decentralized applications and services.

The re-stake function of AutoStake will be executed for a minimum of 1 native token.

AutoStake will re-stake your earned rewards twice daily, as long as minimum reward balances are available for re-staking.

The manual process of withdrawing staking rewards earned to your wallet and re-staking them can be tedious and involves transaction fees with each movement of your assets that can add up over time. By enabling AutoStake with StakeSeeker validator nodes, this process is automated to maximize your compounding of rewards and any related transaction fees are paid by StakeSeeker!

Like any other staking or investing activity, AutoStake is associated with certain risks that must be carefully considered. Some of the risks associated with AutoStake include:

1. Liquidity risk: Staked tokens may be locked up for a specified period of time, reducing the liquidity of your assets and making it more difficult to access your funds in the short term.
2. Network risks: The security and stability of the underlying blockchain network can impact the returns and overall value of your staked tokens. For example, if the network is compromised or subject to attack, this could result in a loss of value for your staked tokens.
3. Market risks: The value of staked tokens can be subject to market fluctuations and economic conditions. If the value of the tokens decreases, this could result in a loss of value for your staked tokens.
4. Technical risks: There may be technical difficulties associated with AutoStake, such as incorrect configuration or execution of transactions, which could result in a loss of value for your staked tokens.