- PhoenixDAO launches a staking dApp.
- Stakers can contribute the native $PHNX token
- And, earn immediate interest through Phoenix Staking.
Some look at crypto staking with a hesitant eye due to how complex the concept sounds. In reality, staking is an easy way to put crypto to work and earn passive income in a safe and secure manner.
Many platforms handle the hard work behind the scenes. For many stakers, it’s as easy as locking coins and watching the rewards roll in.
Stakers lock their crypto assets on platforms like a staking pool – similar to a traditional interest-bearing savings account – for specific periods of time. Rewards are then calculated and dispersed based on factors like the quantity of staked crypto, the inflation rate, and the staking duration.
Stakers financially benefit from the process and in some instances, receive voting rights to determine the platform’s future via governance tokens. The staked crypto helps validate transactions on the blockchain while enhancing the security and efficiency of the underlying project.
The benefits of staking led many to wonder where and how they can participate in the process to earn passive income and help benefit a project they support.
A staking dApp (decentralized application) is the first in a number of flagship applications from PhoenixDAO, a community-led DeFi enabled ecosystem. Stakers can contribute the native $PHNX token and earn immediate interest through Phoenix Staking.
The steps to follow to begin staking on PhoenixDAO and earn interest are simple. These include:
1. Adding Liquidity:
Prospective stakers first need to visit the staking dApp and click the ‘Connect Wallet’ button to link a cryptocurrency wallet, like MetaMask, with the dApp. Those using Wallet Connect and Coinbase’s wallet can simply scan the QR code with their phone. Next, users need to click the ‘Add Liquidity’ button and add the PHNX token to MetaMask if they have not already done so. Users should then enter the amount of cryptocurrency (either ETH or PHNX at this stage) and the dApp will automatically calculate at the current rate. The staking dApp will clearly show the amount of crypto deposited, applicable rates, and pool share. Users will then be asked to approve the transaction and pay the applicable gas fee. Once the transaction is confirmed, a window pops up with an option to add the PHNX-LP (liquidity provider) tokens to MetaMask.
2. Stake and Earn Rewards:
Those who have LP tokens are ready to stake and earn rewards. After navigating to the Farm tab, users will see the APR (annual percentage rate) and will have the option to approve the contract. After approval and transaction confirmation (with a fee), staking dApp users then decide on the number of tokens they want to stake and click Confirm.
3. View Earnings:
The staking dApp’s intuitive dashboard makes it extremely simple to view the amount of cryptocurrency staked and the ensuing rewards. The staking dashboard clearly displays active and historical staking, how to unstake/burn tokens, and the process to stake once again. Stakers ready to collect their rewards simply click on the Harvest button and confirm the transaction. Earned PHNX increases every 15 seconds after each block is mined. Stakers can also unstake their tokens at any time and receive any PHNX rewards and the now-unstaked LP tokens.
In addition to earning PHNX as an interest, stakers can also vote on governance proposals for the entire Phoenix platform. 1,000 staked PHNX is required for voting rights in Phoenix’s DAO (decentralized autonomous organization).
10,000 staked PHNX is needed to create a proposal for others to vote on, which can include changes to governance structure, leadership, protocol, marketing and listing proposals, and rewards for participation.
A user can only stake once on each governance proposal (with each vote counting as ‘one’ no matter how much they stake) but is able to stake on multiple proposals at the same time.
Staking remains a popular trend within the cryptocurrency world as mining becomes costlier and more resource-intensive. Staking helps diversify assets, lower blockchain transaction fees, and provide users with a form of passive income on digital assets.
PhoenixDAO’s staking dApp continues to serve as a safe and effective tool for users interested in earning instant and passive crypto rewards.