“Hello world” from our Tezos bakery

Hello Tezos Community,

First of all, we want to thank all of you who already delegated to us. We appreciate the trust you put in us. Since Tezos and our Baker are brand new, we get many questions regarding our service and about delegation in general. We want to use this blog post to introduce ourselves and answer some of the most common questions.

We are Staking Facilities, a consensus infrastructure provider from Munich, Germany. Our focus lies on providing secure, reliable and performant infrastructure for Proof of Stake blockchains. We manage a high-class portfolio of projects we intend to run infrastructure for. You can find our portfolio on our website. There are some exciting projects we are not able to disclose right now, but will do so in the near future. So stay tuned!

Some PoS networks — like Tezos — enable us to accept delegations from the community. We believe that communication in a transparent manner and providing the best user experience possible is key to a long-term mutually beneficial business relationship. We also believe that we are here to serve the community. That’s why we decided on a dynamic fee of 12.5%. The majority of other bakers charge higher fees, but we want to proof our competence first and gain your trust.

The question we get the most from the community right now is the following:

What payment schedule do you intend to use?”

We had many discussions about this and here is what we came up with:
Starting with cycle 20, we will provide payouts every 10 cycles. That is approximately once every month. Here is our reasoning behind this:
There is currently no automatic way to distribute payments. We have to do this manually. As of writing this post, we have 60 addresses delegating to our baker. Assuming we will get to 100 people very soon, we have to send 100 payments out each month. That accounts to 1200 transactions a year. This consumes a lot of time we would rather spend on improving our service. Once we have proven ourself, we intend to move to quarterly payments (every 30 cycles). However, as soon as we find a trustless and secure way to automate this process, we will be able to provide payouts much more frequently.
We hope this provides some clarity and are happy to hear your feedback.

Below is a small F.A.Q. to answer some other questions we receive a lot.

F.A.Q.:

What is the address of your baker?
You can delegate to our baker which is listed with the address: tz1WpeqFaBG9Jm73Dmgqamy8eF8NWLz9JCoY

Are my XTZs safe when I delegate to you?
Yes, they are. You are only assigning your baking rights to us; you are not transferring any of your XTZs to our account. At no point in time, we have control over your XTZs or your private key.

What is the difference between static and dynamic payouts?
Some bakers give static payouts. It’s almost like a static interest on your capital. Baking returns can be quite high in the first months since only a relatively small amount of XTZ is actively engaging in the PoS algorithm. So while the baker is making enormous ROI with your capital, you get a low and static payout. We think that the fairest way is a dynamic fee which is saying “you get whatever we make with your delegation minus 12.5%”.

What is your fee and what are my earnings?
It is essential for us to provide fair and transparent returns to our customers. That’s why we agreed on a 12.5 % fee for our service. Your earnings will look like this:

(Block Rewards + Endorsement Rewards + Block Fees)
* 87,5% * (Your Delegated Balance / Total Staking Balance)

What happens when you are over delegated?
If we are over delegated, we will honor our delegators on a “first come first serve” basis. That means we will stop accepting new delegations until someone leaves our bakery.
That being said once our capacity to place bonds is reaching a certain threshold we might allocate more capital to our baking node. We have set aside liquid capital to stay flexible.

Where can I check the status of your baker and the cycle we are in?
You can always check the status of our validator here.
If you want information about the current cycle check the tzscan main page. In the future, we will provide custom tools for you to see what’s going on with our baker.

Last, but not least we will announce details about our setup before we start baking our first block in cycle 10. We commit ourselves to provide infrastructure that not only serves the minimum specification required but optimally serves the network.

The Staking Facilities Team

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