Managing Baker Settings

Baker Management with TezGov

TezGov provides a web interface for managing all aspects of your baker beyond voting, including:

• Setting staking parameters (limits and fees)
• Staking and unstaking funds
• Setting consensus and companion keys
• Reactivating an inactive baker

Connecting to TezGov

TezGov Web Portal: https://gov.tez.capital

Connection Methods:

• Ledger Direct (Recommended): Connect your Ledger directly via USB. You’ll see transaction details on the Ledger screen before signing.
• Remote Signer: For advanced users with a signer on their LAN.
• Beacon Wallet: Use Temple, Kukai, or other Beacon-enabled wallets. Note: You’ll sign a blob message rather than seeing specific details.

💡 TIP: Use the Tezos Wallet app on your Ledger, not the Baking app. The Baking app cannot sign these operations.

Setting Delegate Parameters

Delegate parameters control how your baker accepts stakers and what fee you charge.

Parameters Explained

Understanding the Limits

• Staking limit determines how much external stake you accept relative to your own (e.g., limit of 5 = up to 5× your frozen stake; maximum allowed is 9)
• Edge of 0.10 means you keep 10% of staking rewards as your fee
• Delegation limit is always 9× your frozen stake (not configurable)

Example Configurations

Staking Only Mode

Staking only is an option for public bakers who want to accept stakers but not pay delegators. This simplifies operations since:

• Stakers receive rewards automatically from the protocol (minus your edge/fee)
• Delegators can still delegate to you, but you don’t run TezPay or send manual payouts
• You register your baker as “staking only” on TzKT so delegators know not to expect payments

Benefits:

• No need to run TezPay or manage payout infrastructure
• Reduced operational complexity
• Clearer expectations for delegators (they see “staking only” on TzKT)
• May have legal/tax advantages in some jurisdictions (no active payout service)

How to set up:

1. Set your staking parameters in TezGov (e.g., limit of 5, edge of 0.10)
2. Register your baker as “staking only” on TzKT’s baker registry
3. Delegators will see this status and can choose to stake instead if they want rewards

💡 TIP: Delegators who want rewards from a staking-only baker should stake their funds instead of delegating. Staked funds automatically receive protocol rewards.

How to Set Parameters

1. Log into TezGov with your baker’s key
2. Navigate to the Baker Settings or Delegate Parameters section
3. Set your desired Limit of staking over baking (0-9)
4. Set your desired Edge of baking over staking (e.g., 0.10 for 10%)
5. Click Update Parameters
6. Confirm the transaction on your Ledger

Important Notes

• Default state: By default, stakers are NOT accepted until you explicitly set parameters
• Activation delay: Parameter changes take effect after 5 cycles (~5 days)
• External stakes: Until parameters are set, any external stake is treated as delegation

CLI Alternative

You can also set parameters via the command line:

tezbake signer client set delegate parameters for <tz_address> \
  --limit-of-staking-over-baking 5 \
  --edge-of-baking-over-staking 0.10

Staking and Unstaking

TezGov allows you to stake additional funds or unstake existing funds from your baker.

Staking Funds

1. Log into TezGov
2. Navigate to the Staking section
3. Enter the amount to stake
4. Click Stake
5. Confirm on your Ledger

Staked funds become part of your frozen stake and increase your baking power.

Unstaking Funds

Unstaking is a multi-step process due to the protocol’s security requirements:

1. Initiate unstake: Request to unstake an amount
2. Waiting period: Funds are “frozen unstaked” for 2+1 cycles (~3 days on Tallinn). If you unstake during cycle 1000, you can finalize in cycle 1003.
3. Finalize: After the waiting period, finalize to make funds spendable

To unstake:

1. Log into TezGov
2. Navigate to the Staking section
3. Enter the amount to unstake
4. Click Unstake
5. Confirm on your Ledger
6. Wait 4 cycles
7. Return to finalize the unstake

⚠️ NOTE: If you have issues unstaking decimal amounts, try using whole numbers instead.

Setting Consensus and Companion Keys

Consensus keys allow you to separate your baker’s consensus signing from your main wallet key. This is particularly useful for:

• Enhanced security (main key stays cold)
• Using BLS keys (tz4) for consensus
• DAL attestation (requires companion key)

Key Types

Setting Keys via TezGov

1. Log into TezGov with your baker’s manager key
2. Navigate to Baker Management or Keys section
3. For Consensus Key:
   • Paste your new consensus key address (tz1/tz2/tz3/tz4)
   • Paste the Proof of Possession (POP)
   • Confirm on Ledger
4. For Companion Key (if using tz4):
   • Paste your companion key address (tz4)
   • Paste the Proof of Possession (POP)
   • Confirm on Ledger

Activation Timeline

• Key changes take effect after 3 cycles (~3 days)
• Check activation status on TezGov or TzKT (Secondary Keys tab)
• Plan key rotations ahead of time

Important Notes

• If using a tz4 consensus key, you must also set a companion key for DAL
• The companion key is specifically for DAL attestation duties
• Both keys should be set in the same session if using tz4

Baker Reactivation

If your baker becomes inactive (e.g., due to missing too many attestations or being offline), you can reactivate it via TezGov.

How to Reactivate

1. Log into TezGov
2. Click TezGov in the top left corner
3. Look for the Reactivate button (only visible if your baker is inactive)
4. Click Reactivate
5. Confirm the transaction on your Ledger

After Reactivation

• Your baker will become active again in the next cycle
• Ensure your baking infrastructure is running properly before reactivating
• Check tezbake info to verify your node is synced and baker is operational

Troubleshooting

“Transaction Not Trusted” Error

If you see this error while your baker is running:

1. Stop your baker: tezbake stop
2. Perform the operation in TezGov
3. Restart your baker: tezbake start

This occurs because the Ledger Wallet app cannot share the device with a running baker process.

Connection Issues

• Ensure you’re using the Wallet app, not the Baking app
• Try a different USB port or cable
• Use a Chromium-based browser (Chrome, Brave, Edge)
• Try hard refresh: Ctrl + Shift + R (Windows/Linux) or Cmd + Shift + R (Mac)

Parameter Changes Not Taking Effect

• Remember: changes take 5 cycles to activate
• Verify the transaction was confirmed on-chain (check TzKT)
• Check your current parameters: tezbake info

Related Guides

• Voting on Proposals - Participate in governance
• Injecting Proposals - Submit new proposals
• Baking on Mainnet - Set up your baker

Any questions/comments/concerns? Please contact the Tez Capital team on Discord or Telegram