Namaste Tribe! One of the most-awaited features – Staking – has arrived on WazirX! You can now stake your favourite tokens and earn rewards. 💰
How to start staking on WazirX?
Buy or deposit a proof-of-stake (PoS) token, and hold at least a minimum balance of it on WazirX. Yes, that’s all! Good news is, there’s no fees on staking, so you can earn and enjoy your rewards! Yes, all you need to do is hold the supported staking tokens on WazirX, we’ll handle all the technical requirements for you. We’ll distribute the staking rewards within the first 15 days of every month.
Today, we’re starting with TRON staking. We plan to add staking support for a new token every week. Next ones on our list are Tezos (XTZ) and Harmony (ONE)!
Can I trade while staking?
Yes! Your staking tokens will not be locked, and you will always be able to trade your tokens any time. However, once your trade is executed, the amount of staked balance will change, and the corresponding rewards that you will earn from daily snapshots will change accordingly.
What is staking? 🤔
First, let’s start with what is Proof-of-Stake (Pos). PoS is a popular and more energy-efficient consensus mechanism compared to Proof-of-Work. In PoS, the creator/validator of a new block is chosen on the basis of what they have on stake. Users can stake their tokens on the network to become a validator, and the ones with the biggest stakes usually have the highest chances of producing a block. As a reward, the validators get the transaction fees in the block they create, or they get some amount of tokens. Since the validators own the tokens on the blockchain, i.e., have a stake, there’s a higher incentive to improve the network unlike in PoW.
In a nutshell, staking is the process of depositing and holding funds in a wallet or an exchange to support the security and operations of a proof-of-stake blockchain network. In return, users receive rewards for this. Users can combine their tokens/resources to increase their chances of becoming validators, and earning rewards. The rewards are shared based on their contributions to the pooled resources. This is called staking pool. Read more about staking here.
Are there any benefits of staking?
There are many!
- It’s pretty simple and straightforward process. For example, to become a miner, you need a high computing resources, but anyone can participate in staking!
- It helps generate passive income for validators and users. You can earn a percentage of interest by holding a token. This is especially helpful for no-coiners and HODLers who don’t have the time or skills to trade.
- It is energy-efficient compared to PoW.
What are you waiting for? Deposit tokens on WazirX today, and start earning today!