What Is Staking And How Does It Work?
This article explains what staking is, how it works and the benefits it provides to both crypto projects and investors.
What is staking in crypto?
Staking is a way for investors to earn rewards in return for storing tokens with a project for a specific duration of time. Staking is beneficial and desirable for projects and investors in most cases. In order to stake cryptocurrency, you will need to purchase coins that use the proof-of-stake model.
What are the benefits of staking for crypto projects?
Projects typically utilize staking pools for the following reasons: to increase token utility, to improve token price stability by locking circulating tokens and to increase token holder engagement/participation.
What are the benefits of staking for crypto investors?
There are varying benefits of staking for investors, the most desirable being passive income. Since staking doesn’t involve equipment, unlike mining, it is rather easy for investors to earn interest on their crypto holdings. Furthermore, staking actually helps to maintain the security of the blockchain and thus leads to greater efficiency.
What are staking rewards?
Investors can receive different types of rewards depending on the token they hold. Oftentimes, rewards are calculated via Annual Percentage Yield (APY) or Annual Percentage Rate (APR) — the annual rate changed for borrowing or earning money. APY enables investors to earn a percentage for locking in tokens for a certain period of time. Locking helps to secure the blockchain and validate transactions, thus providing incentives, such as rewards, for investors to receive for holding tokens.
Can I earn rewards for staking NFTs?
Similarly to the way investors earn rewards for staking cryptocurrency, investors can also earn rewards for staking NFTs. Depending on the platform on which you stake and the NFT itself, the rewards will vary. Staking NFTs allows investors to earn rewards without having to find a buyer, thus alleviating issues with the NFTs liquidity.
What is Decubate ATS?
Decubate Assured Token Staking (ATS) is a highly customizable and secure staking product. ATS empowers projects to increase the utility and stability of their token by rewarding their token holders with passive yields. Leading crypto projects like Bit Hotel, Animalia and more use ATS to engage their token and NFT holders. Decubate ATS includes:
1. Premium staking portal
A user-friendly yet sophisticated staking page that supports a wide array of staking strategies and reward types — fully customized for your project (colors, buttons, logo, fonts and more).
2. Staking smart contract
The ATS staking contract has successfully audited and supports EVM compatible blockchains including Ethereum, BSC, Polygon and more.
3. Hosting and support
24-month hosting and technical support.
How much does ATS cost?
Contact us to learn more about Decubate ATS.
Decubate is a web3 software company and investor club. Our vesting, staking and governance products help leading crypto projects increase token holder engagement. Our investor club provides members with exclusive value creation opportunities from the projects we partner with.