Staking cryptocurrencies is considered passive earning and it is an alternative way of earning and increasing your portfolio. When you stake coins, you lock up coins in your wallet for some time to obtain a reward. This reward or earning interest is carefully predicted, and you always know how many coins you will get. All of these coins you can unstake later and use them.
What does the process of staking look like?
Staking of any cryptocurrency is always done in the official wallet of that currency. Before you start, you should read all the information about it, usually on the website or in the wallet. You will get some percentage of coins during the time, and how much exactly and at what rate - you will find out in the information table. When you want to unstake coins, you will probably need some time to do so. For example, on some blockchains, when you declare you want to unstake, you would need 7 days, or 14 days or 30 days to get your coins in unstake mode and start spending them. Often there is a minimum amount of coins you need to have in your wallet to be eligible to stake those coins at all.
What coins can be staked?
Many cryptocurrencies can be staked. All the Proof-of-Stake coins systems rely on it for their underlying blockchain ecosystem, to mine/validate new blocks. Some of them are Cardano, Polkadot, Solana, and many others. Safex Token is a staking coin unlike any other, in that it is NOT used for block validation, but earns passive income solely based on the volume of sales activity on the Safex Marketplace.
Staking Safex Token (SFT)
Staking is an advanced function of the blockchain and is an action that can be performed on available Safex Tokens. Once eligibility criteria are met, staked Safex Tokens accumulate a pro-rata ‘revenue share’ of the SFX Sales Commission Pool. As we explained in Safex Token text, when you stake Tokens, you will get revenue from products sales on the marketplace. 5% from every sale goes to the community pool, and from there, it will be distributed to the Token holders according to their holdings.
Let’s imagine one product is sold for 100 SFX on the marketplace. From that amount, 5% will go to the community pool, which is 5 SFX. Now let’s imagine there are only 2 token holders who staked SFT. One has 80% of the full staked amount, and the other has 20%. That means that the first would get 4 SFX and the second 1 SFX from this community pool.
The minimum amount you have to have to start staking is 25 000 SFT. You have to have tokens staked for 8000 blocks (10-11 days) before you decide to unstake them. Each Staked amount qualifies for revenue share at the next 1000-block interval. Revenue Share is calculated at the end of every 1000-block interval, so don’t be surprised you still haven’t got your Safex Cash. You will get them.
Also, only SFT staked for the entire 1000-block interval qualify for the revenue share allocation gained from marketplace purchases made in that interval. A wallet address can hold multiple stakings of SFT, and each staked output accumulates its own pro-rata revenue share, and you can unstake them separately. On top of that, you will clearly see all the staked amounts in the so-called Staking Table.
A Staking Table is a component of the Safex Wallet, where all current Staked amounts of SFT are listed. The Staking Table displays the amount of SFT staked, the current amount of SFX that have accrued, and the block height at which the staking was initiated.
Follow the guide to stake your Safex Tokens successfully.