What is Staking?
Staking is similar to opening a savings account, but with cryptocurrency on a blockchain, rather than a bank. you "lock up" your coins for a specified period of time.
Two types of staking options are available on BZE are on-chain staking and DApp staking.
The key difference between these is their functionality and flexibility.
Native Cosmos SDK staking, staking uses BZE to maintain network decentralization by distributing voting power, essential for blockchain security and governance.
DApp staking, on the other hand, allows users to create/stake in pools with various tokens on the BeeZee chain , offering greater diversity and customization.
You can check out On-chain staking by clicking below:-
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What are Staking rewards?
Staking rewards are the earnings you get for locking up your cryptocurrency. Just like how a bank pays you interest for keeping money in a savings account, the blockchain rewards you with more coins for staking.
On an annual basis, rewards are usually measured in terms of APR ( Annual Percentage Rate) , It is the annual rate of return you can earn on your staked or invested cryptocurrency.
Anyone using the Dapp can create or join the various staking pools present on BeeZee.
Let's take an example to understand it more clearly:
Imagine you have 100 BZE tokens.
- APR: The staking APR is 12%.
- Lock Amount: You decide to lock up (stake) 100 BZE tokens.
- Rewards Calculation: After one year, with a 12% APR, you would earn 12 BZE tokens as rewards.
So the maximum rewards that you can earn in a year can be calculated using an APR.
It doesn't mean that you will get your reward after one year; rewards are generally given in parts. It will be mentioned when you go to Dapp to stake some tokens. Rewards are distributed daily based on staking rewards
Always check the lock period of your coins to know when you can withdraw them at the earliest. Knowing the lock period helps you understand when you will be able to access your funds again.
Look at the image for a example :
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You will need to stake TBZE to earn TBZE, and the reward frequency is daily. It means that you will get a part of the reward daily, depending on the amount of coins staked.
You can also see the lock time, which is 3 days.
How Do You Get Started?
- You can use our Dapp to stake your tokens or coins in various pools that are available.
- Head over to https://app.getbze.com/earn.
- Choose the staking pool you want to be a part of and the amount of coins you want to stake.
- Use the stake button to enter the amount of coins, and then confirm by verifying the transaction in your wallet.
{% hint style="info" %} Always check and understand the lock period before staking your coins. This ensures you know when you can access your funds again, helping you manage your investments and financial plans effectively. {% endhint %}