There's been lots of FAQs surrounding the Solanium project. Beginning from the Whitelisting model, the collaboration with the Flippies-nft and furthermore. Many have also enquired on the staking model of the Solanium system, demanding more on the how-to-go-about stuffs. A lot find it difficult and hence, are disinterested in the staking system. Well, here's an article to keep you smiling on the Solanium staking system.
For newbies who are wondering what staking is, staking cryptocurrencies is a process that involves committing your crypto assets to support a blockchain network and confirm transactions.
It's available with cryptocurrencies that use the proof-of-stake model to process payments. This is a more energy-efficient alternative to the proof-of-work model, which requires mining devices that use computing power to solve mathematical equations.
Staking can be a great way to use your crypto to generate passive income, especially because some cryptocurrencies offer high interest rates for staking. Before you get started, it's important to fully understand how crypto staking works.
How staking in crypto works
With cryptocurrencies that use the proof-of-stake model, staking is how new transactions are added to the blockchain. Participants pledge their coins to the cryptocurrency protocol. From those participants, the protocol chooses validators to confirm blocks of transactions. The more coins you pledge, the more likely you are selected.
Every time a block is added to the blockchain, new cryptocurrency coins are minted and distributed as staking rewards to that block's validator. The rewards are usually the same cryptocurrency that participants are staking, although some blockchains use a different type of cryptocurrency for rewards.
Now taking you back to the hottest project in the crypto space of Solanium ($SLIM).
Here we are dealing with staking $SLIM to be among the crypto elites.
How does the APY work?
Our staking APY is designed in a way that rewards are only claimable during withdrawal after lock! On top of gaining juicy APY by having your $SLIM tokens staked, you can get tons of benefits for staking $SLIM tokens to get xSLIM tokens. Also we added the xSLIM decrease rate for those who do not have their auto restake on.
SLIM tokens are lockable for a selectable locktime, with a maximum locktime of 1 year. By locking SLIM tokens in the staking contract, the user will receive a xSLIM balance. xSLIM tokens are not transferrable.
The height of the xSLIM balance is based on the amount of SLIM tokens locked, and the time left before the tokens unlock. The xSLIM balance is linearly decreasing since the time of lock. The SLIM tokens locked can not be withdrawn before the timelock has expired. However, it is possible to extend the timelock or increase the amount of staked SLIM tokens.
xSLIM token qualifies the user for fee distribution, voting rights and exclusive or early pool access.
Benefits of staking $SLIM
- Luscious APY - the longer you lock the higher the APY
- Token security
- Increased chances for whitelist slot.
- Solanium IDO's project token airdrop.
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