Advisory on using Ledger Live for Horizen node staking
I hope you are all doing well and staying safe during these trying times. With the deprecation of the legacy Ledger Bitcoin Chrome app occurring shortly, I think that it is appropriate to issue an advisory regarding the Ledger Live app for holding the collateral for your Horizen nodes.
As of writing this you can use the Ledger devices, but it is just a little bit more complicated with sending the rewards, due to the nature of the way the ledger Live app creates transactions.
Ledger Live uses the First In, First out (FIFO) model when sending transactions, where as the legacy Ledger Bitcoin Chrome app used Last In, First Out (LIFO).
What this means, if you try to only send the rewards out using the Live app, the Live wallet will use the first UXTO (typically the initial collateral amount) note and then send the reward amount to the receiving address only a portion of this UXTO, and move the rest ("change") into a new change address in the account in the Live app.
This will then result in a state where the staking address will no longer have the correct collateral, but the account will still display that it has the requisite stake.
It is that it is recommended to periodically send the entire amount out of the staking address and then sending back the requisite collateral (either 42 or 500 zen) back to the staking address.
The reason for sending the rewards out periodically is to prevent the device from locking up because the node reward payments are the same as dusting mining reward payments, and Ledger advise to consolidate these payments https://support.ledger.com/hc/en-us/articles/115005165209-Receive-mining-proceeds
I hope that this post is useful and should you have any further questions, please do not hesitate to get in touch with my below or on Discord.
Have a great day