The Free TON community members heard the term “Staking” many times, but not everyone knows both the meaning of this word and the possibility of using stealing in Free TON. This article will help you understand this.
What is “staking”?
Staking is the process of holding funds on a cryptocurrency wallet to ensure support for all blockchain operations. In other words, you can get an award just because you keep cryptocurrency, because this keeping allows to ensure operation of the entire blockchain.
Mainly steaking is available for blockchains working through the Proof-of-Stake algorithm (PoS) - a type of consensus mechanism by which a cryptocurrency blockchain network achieves distributed consensus. Free TON works through the PoS.
What is the difference between staking and mining?
Mining is the process of cryptocurrency mining, using calculations on special computers that are combined by a network, blockchain.
Staking, unlike mining, doesn’t require special equipment, since staking does not involve the use of large computing power. The main condition of staking, as we said earlier, is the storage of cryptocurrency.
Another advantage of staking is safety: the possibility of an attack is minimized, since if any of the participants wants to commit fraud, they will lose a considerable part of the money.
Staking in Free TON
The size of the staking award in Free TON is approximately 8% per year. The percentage may vary depending on the resources of the validators.
Staking contract (DePool) is responsible for staking in Free TON. This contract leads 3 rounds in parallel. Each round consists of a set of steaks (steak is ashare), elections of validators (nodes involved in the process of signing the generated blockchain blocks), validation, freezing of steaks and distribution of rewards.
Before we tell you how you can take part in staking, we need to warn you: during steaking, it is possible to lose tokens for violating validation rules, although this chance is very small (depools are decentralized, so in this case it is impossible to steal steaks). Moreover, you cannot cancel the current stake used in the validation process, but you have the option to disable Autoresume, the coins will be available for recall from the staking after the block signing process ends.
The most common way to participate in staking is using the TON Surf wallet. You can learn how to install TON Surf here.
On the home page, you need to click on the "Earn staking rewards" button.
Note that the minimum steak size is 100.5 tokens.
After that, you will have to wait for the reward. You'll get a notification from the bot. And a daily report will be received on the current status of the steak and the reward received.
Staking in Free TON is also available through the DePools website.
Here you will need to select a pool and click the "Stake" button, specify the amount of TON Crystal that you will freeze. To place a steak, you will need to use a master password (a password consisting of 12 English words) or public and private keys.
Now you know more about the opportunities of the blockchain. Participate in staking and get rewarded! Subscribe to our channel to always receive up-to-date and valuable information about Free TON!