Steem Staking Benefits
Steemit Crypto Academy Contest Season8 Week6 [SUMMARY] - "Steem Staking"
In Week 6 of Season 8 of the Steemit Crypto Academy, the topic was "Steem Staking." Staking is a process by which users hold their tokens in a wallet for a certain period to earn rewards. In the case of Steem, staking is an essential aspect of the platform that enables users to participate in the governance of the Steem blockchain.
Here is a summary of the key points covered in the lessons:
What is Steem Staking?
Staking is the process of holding Steem tokens in a wallet for a certain period to earn rewards. The Steem blockchain uses a Delegated Proof-of-Stake (DPoS) consensus algorithm, which means that those who hold Steem tokens can use them to vote for witnesses who validate transactions on the blockchain. By staking their tokens, users can earn a share of the rewards that are distributed to the witnesses.
How to Stake Steem?
To stake Steem, users need to transfer their Steem tokens to the "Steem Power" (SP) account. SP represents a user's voting power on the Steem blockchain, and the more SP a user has, the more influence they have over the blockchain's governance. Users can stake their Steem tokens by selecting the "Power Up" option in their wallet and choosing the amount of Steem they want to stake.
Benefits of Steem Staking
Staking Steem has several benefits. It provides users with the opportunity to earn rewards by participating in the governance of the Steem blockchain. Staking also increases a user's influence on the platform, enabling them to vote for witnesses and proposals that they believe will benefit the community. Furthermore, staked Steem tokens are locked up for a certain period, which can help to stabilize the price of the token.
Risks of Steem Staking
While staking Steem can be a profitable investment, it also carries some risks. The value of Steem tokens can fluctuate, and users who stake their tokens may miss out on opportunities to sell them at a higher price. Additionally, staked tokens are locked up for a certain period, which means that users cannot access them until the staking period has ended.
How to Un-Stake Steem
Users who have staked their Steem tokens can un-stake them by selecting the "Power Down" option in their wallet. Powering down Steem converts the staked tokens back into liquid Steem, which can be withdrawn or sold. The un-staking process takes 13 weeks to complete, during which time users receive a portion of their staked tokens back each week.
Overall, staking Steem is an essential aspect of the platform that provides users with the opportunity to earn rewards and participate in the governance of the Steem blockchain. While it carries some risks, staking can be a profitable investment for those who are willing to hold their tokens for an extended period
