Many blockchains use a proof of stake consensus mechanism (PoS)
Crypto staking lets you earn cryptocurrency as a reward for using your existing holdings to vouch for blochchain network transactions. Staking is one way for crypto users to generate passive income. Staking can offer returns that exceed those you could earn in a savings account.
Staking locks up or bonds tokens to a validator for a set time. This is done to secure the network preventing a whale from taking control of the network. The goal is to have 67% of the tokens staked.
These tokens are no longer liquid and reduce the supply available to be traded on the exchanges so this increases the value of the asset.
All transaction that get added to a block by a validator are paid a gas fee in the chains native token. These fees are then split between the validator and the stakers.
Each BlockChain has it's own rules about token bonding, epochs and payouts. Some chains payout ever 24hr and some ever epoch that can take several days.
NOTE: Staking reward precentage is paid on a moving target. The value of the locked up asset will move in value based on the market price, Number of Tokens Staked and the number of transactions that fees are collected from.
WARNING: Staking has a risk called slashing if a validator has downtime or double signing.
If you want to learn Staking in it's fullest levels call or email.
Listed below are just a few examples of PoS chains on the Cosmos.
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Ethereum PoS you will need 32 ETH or Join a stake pool 5% APR. Withdrawals are planned for the Shanghai upgrade, the next major upgrade following The Merge. This means that newly issued ETH,
though accumulating on the Beacon Chain, will remain locked and illiquid for at least 6-12 months following The Merge.
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Cardano ADA Staking 5% APR
Delegation is the process by which ada holders delegate the stake associated with their ada to a stake pool.
It allows ada holders that do not have the skills or desire to run a node to participate in the network and be rewarded in proportion to the amount of stake delegated.
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Polkadot Staking 14% APR
Each delegator also needs to stake a minimum of 120 DOT in order to win the right to participate in the block validation process.
The process for staking DOT is more complex then other chains. The wallet needs to have more than 1 DOT to receive rewards.
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Solana Staking 7% APR
You can stake by delegating your tokens to validators who process transactions and run the network.
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Zilliqa Staking 15% APR
You can stake by delegating your tokens to validators who process transactions and run the network.
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