Matic Network Crypto Staking Goes Live, Yield Reached 150%
Matic Network crypto staking went live on June 29, 2020, and the delegators need a minimum of one token to participate with a price of under two cents because the barriers are really low to enter, as we are reading in the latest altcoin news.
The co-founder of Matic Sandeep Nailwal took it to Twitter to give an update on how everything is progressing. He said that 7% of the circulating MATIC supply was already staking during the period. What’s even more interesting, Nailwal mentioned that crypto staking rewards are coming out with a 150% per annum. As users join, the rate will return in line with the industry average of 5-10%.
— Sandeep Nailwal-Matic Network (@sandeepnailwal) June 29, 2020
In recent times, staking was seen as a viable method to earn passive income from crypto and with the initial rate of return being high, it is easy to see why the sentiment is turning again back. When it comes to generating an income from crypto, staking stands out as an easy and low-risk solution and by holding the tokens and delegating, the investors can easily earn staking rewards. Staking also provides a framework for community participation:
“Proof of Stake and staking opens up more avenues for anyone wishing to participate in the consensus and governance of blockchains.”
By having a governance framework, the Proof of Stake consensus mechanism can solve many of the problems related to running crypto. Ethereum’s a hard way to implement PoS is a testament to the PoS advantages. But Matic has a huge advantage in being created from the group up as a PoS system. The staking solution will come in a few phases. Yesterday marked the launch of the first phase which relates to delegators pledging tokens to nodes controlled by the Matic Foundation.
The second phase will implement staking to external third-parties and a number of big names were already introduced, including IT consultants InfoSys. To run a staking program, Matic set aside 1.2 billion tokens which represent 12% of the total supply but overtime and community engagement, Matic expects this to rise to about 80% in the upcoming year. looking at top staking projects such as Tezos ranked first in terms of total supply staked with 80% thanks to the custodial staking functionality via crypto exchanges.
Crypto exchanges account for about 18% of the Tezos staked supply with Coinbase being the major player in this respect. While Matic did offer a custodial pre-staking service via Coinone, staking does don’t include exchanges.