One question, why would anyone want a stake anyways? Well, there are two main reasons.
First, because they want to support their favorite project by securing the network and keeping it decentralized.
Second, they want that sweet passive income because, remember, stakers earn coins when they successfully validate a block. And if you’re going to huddle anyways might as well put your money to work.
So let’s check my watch lists.
This is one of Ethereum’s top competitors. And it’s quite similar to eth 2.0 architecturally speaking. That should come as no surprise since it was created by dr Gavin Wood, one of Ethereum’s co-founders.
They currently rank top 9th in the total market cap, which is impressive because their parachains haven’t even launched yet.
Their staking rewards varies depending on how much dot is being staked across the whole network. But their current rate is around 14% per year with an adjusted rate of about 5%, and adjusted rate means how much you earn after taking into account token inflation.
Becoming a validator for Polkadot is quite difficult, though. Because you either need to have millions of dollars worth of dots by yourself or have a bunch of people nominate you with a large enough collective stake.
So you should delegate then, in my opinion. But that’s not quite that approachable either since right now, the minimum nominated requirement is 80 dot which is over two thousand dollars.
So that high barrier of entry, along with their super-long 28-day lock-up period, is why I put them at number five on my list.
This has been one of the hottest projects of 2021 so far. Solana is well known for utilizing their proof of history algorithm to create their blazing fast speed alongside proof of stake.
As for staking, you need pretty expensive and fancy hardware to become a validator, so once again, I recommend delegating instead.
Their rewards rate is just okay, though, currently sitting at around six percent a year, but then when adjusted for inflation, that drops down to about one percent.
That’s because the fees from staking providers are super high at about ten on average. But it still may be good to stake anyways because if their coin continues to rocket, then it’ll be worth it.
To get started, it’s pretty simple to find a Solana wallet that supports staking, and it shouldn’t take more than a few steps to get going.
The best part is that you maintain control over your funds the whole time. There is no minimum amount like Polkadot has, and your rewards are automatically reinvested.
There is some risk of your funds being slashed if your validator acts maliciously, but choose a reliable one, and you’ll be fine.
By the way, they do have a two-day unlock period before you can move your delegated funds again.
This is the popular second-layer solution for Ethereum. They offer several different scaling solutions, but their most popular one is their proof of stakes sidechain. So since it’s proof of stake, that means they offer to stake.
You can stake MATIC for anywhere around 5.2% annual return, and that depends on the percentage of all MATIC that’s being staked.
Right now, since around 38% of all MATIC staked, your annual reward rate would be around 14% unadjusted. So whether you want to validate or delegate, you can stake using their web wallet in conjunction with something like metamask.
Their minimum is quite low as well, just one MATIC, which comes with an unlocked period of 9 days.
They do have a limit of 100 validators, though, so it’s pretty hard to get chosen, and you might as well delegate and accept the fee that comes with it.
Lastly, they do have slashing, so make sure you choose a good validator to go with or do it on an exchange if you want to keep it simple.
This is the project that’s focused on creating a global payments network. And to do so, they’ve designed special stable coins that are pegged to fiat currencies. But in a decentralized and algorithmic manner.
Their native token is LUNA, which is used to collateralize their stable coins, but you can also stake it since they are proof of stake after all.
It was incredibly difficult to find out exactly what the rewards rate is. Every site gave me different numbers. But, per my best guess, it is somewhere between six to ten percent per year.
And sometimes you see much higher numbers, but those include the airdrops into their calculation.
There is a cool bonus here of staking LUNA. You get regular airdrops from their other projects within the Terra ecosystem. Like Anchor, mirror, etc.
So that’s pretty awesome, and I like those other projects as well. Now for LUNA becoming a full-fledged validator is hard because you have to be a crypto whale even to compete. For one of the limited slots that can earn rewards.
So you can delegate instead. İt’s super easy to get their wallet, and it only takes a few minutes to get going.
They do have a 21-day lock-up period, though, and validators who underperform may get some of their coins slashedç, so as a delegator, I recommend you splitting your coins among several different validators for the best experience.
I’ve been a critic of this project and not a fan of it personally. But I have to give them props for what they’ve done with staking so far.
They lead all proof-of-stake projects in terms of total value stake, which is roughly 60 billion dollars worth at this time. And that comes from 70% of all ADA being staked.
It’s recommended to delegate instead of running your staking pool, and you can get roughly 6% annual returns with about 1.7% left after adjusting for inflation. Not the best rewards rate. But they do make it super easy to participate, though.
Also, there’s no lock-up period. You retain full control of your funds, and there’s no slashing that you got to worry about. So it’s not surprising to me that a lot of people choose to stake their ADA.
After all, coins I follow, I have to point out that there are two other ways to make money that are kind of similar to staking but yet different.
That’s basically where you provide your coins as liquidity to some protocol like. A dex, for example. And they give you rewards for doing so.
Yield farming can be a bit riskier than staking on a layer one blockchain because this involves more complex smart contracts and whatnot.
But it could also get you way more returns, so you have to judge the risk and reward yourself.
The second option is lending:
Lending your coins out to people who want to borrow them for whatever purpose. And just like if they borrowed from a bank, you would receive a steady interest payment.
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