Staking
What are Staking coins?
All blockchains have one thing in common: transactions need to get validated. Bitcoin, for example, does this in a process called mining which is known to use a lot of electricity (Proof-of-Work). There are, though, other consensus mechanisms that are used for validation. Proof-of-Stake (PoS) is one such consensus mechanism with several variations of its own and hybrid models. We will refer to all of these as staking to keep things simple. Coin staking gives currency holders some decision power on the network. By staking coins, you gain the ability to vote and generate income. It is quite similar to how someone would receive interest for holding money in a bank account or giving it to the bank to invest.
What are some of the benefits?
One of the significant benefits of staking coins is that it removes the need for continuously purchasing expensive hardware and consuming energy.
The system offers guaranteed returns and a predictable source of income, unlike the proof-of-work system, where coins are rewarded through a mathematical process with a low probability of paying out. Another benefit is that the value of your staked coins doesn't depreciate, unlike with ASICs and other mining hardware. Staked coins are only affected by market price fluctuations.
How does it work?
The standard methods for staking are usually holding coins in your wallet or locking them in a smart contract (master nodes). Some coins added randomness to the process of staking and voting, so that bad players have a hard time manipulating outcomes. The process can be similar to a lottery in which the number of crypto coins you hold is equivalent to holding a given number of lottery tickets. Staking systems can also allow delegation in which each individual delegates their voting rights and earned income to a trusted party. Those delegates then earn all the rewards for block validation and pay their loyal supporters some form of dividends in return for their vote.
Staking using Memes Wallet
Memes Wallet allow you to become a delegator and earn rewards by staking the following coins
More coming soon...
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