You want to not just have coins in your wallet but make them work for you.
This is possible using a coin delegation mechanism which is called ‘staking’. It allows a node to increase its stake and, respectively, the income of the node owner.
Any blockchain operates to verify all blocks: when using the PoW consensus algorithm, miners do this work, when using PoS – validators. The EDC blockchain system is based on the PoS algorithm (namely Delegated Proof-of-Stake), which makes staking possible.
Validators’ bonus reward
Validators play a key role in the PoS consensus algorithm, as their nodes confirm new blocks in the blockchain and help keep it running. EDC Blockchain validators who have proven their efficiency receive a daily reward in the amount of 0,1 EDC per block for the work done. Additionally, your reward includes 10% of all commissions on the platform, distributed among all validators.
How staking works
When staking, you delegate validation rights to the EDC Blockchain system, but you do not transfer your coins to third parties. They are only blocked for the duration of staking, allowing the blockchain to maintain stable operation. This will ensure that your coins are safe and will be returned to your balance after the staking period ends.
The stake is also a guarantee that the node will “follow the rules”, otherwise the node owner will be excluded from the committee and forfeit their interest.
Why staking is profitable
The most profitable way to stake in EDC Blockchain is to become a validator. You can create a wallet on the official website and deposit coins to your balance in the amount that is needed to unlock the button to create a node.
Any participant in the Ethereum 2.0 network can become a participant in the creation of new blocks. However, this requires significant funds. The minimum deposit for staking is 32 ETH or over $3500 USD.
Waves also provides a staking opportunity with a minimum deposit of 1000 WAVES ($5600 USD at the current rate). Considering the global crisis, this is a lot of money for the majority of people.
In EDC Blockchain, the amount you need to have on your balance to become a validator is 20,000 coins that will be burned to open access to validation. At the current exchange rate, this is 75% lower than the required staking deposit in Ethereum or 84% lower than in Waves. The platform does not charge additionally, but chose a burning strategy in order to strengthen the position of the EDC coin by reducing the number of coins in circulation.
What’s ahead?
In 2021, each EDC member will have access to a staking program with a duration of 12 months and an annual return rate of 36% (in Ethereum 2.0, the maximum annual income cannot exceed 20%), plus all limits on staking deposits will be canceled.
Start staking EDC Blockchain by registering your wallet and depositing coins to your balance on the following exchanges: https://blockchain.mn/exchanges/.
If you have any questions about staking, please contact EDC Blockchain support.
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