Bittime - The world of cryptocurrency offers a variety of ways to make money. One method that is increasingly in demand is staking. This article discusses staking Toncoin (TON), the native token of the TON network, which allows you to earn passive income while contributing to network security.
What is TON?
TON is the native token of the TON network, a scalable and flexible blockchain platform. TON has various important uses in networks, including:
- Governance: TON is used for voting on network governance proposals. The more TONS you have, the greater your voting power.
- Staking: Users can lend their TON to validators. Every time a validator earns a reward from validating a block, the reward is distributed to the participants involved.
- Token Gas: Every transaction processed by the network requires a small TON fee to be paid to validators.
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What is Staking Liquid TON (LSt)?
Staking Liquid TON (LSt) is a mechanism that allows anyone, regardless of the amount of TON they own, to contribute to the TON Blockchain validation process through a pooling strategy.
Nominator
In this system, stakers or nominators, who are essentially TON holders with funds to invest, pool their resources to support the validation process. These nominees delegate the pool to exercise their rights in blockchain validation.
Jetton Pool
When participants stake their Toncoin via the TON LSt protocol, they receive liquid staking receipt tokens known as Jetton Pool. These tokens represent the total funds staked by all users in a particular pool.
Over time, as the pool earns rewards for each validation cycle (essentially for maintaining the TON Blockchain), the Jetton Pool to TON value ratio increases. As a result, stakers can redeem their accumulated rewards by exchanging their Jetton Pool tokens for TON, providing an incentive to engage with the platform.
How does the TON LSt Protocol Work?
Staking Liquid TON allows participants to use staking pools that allow them to stake their Toncoin on the platform.
- Nominator: Stakers, also known as nominees, are TON holders who stake their funds in a pool to be used for validation. In other words, they are users who nominate pools to exercise their validation rights.
- Liquidity Provision: TON LSt also helps determine proper protocol governance through a group of participants managing arbitrary liquid staking pools on the network. Liquidity is provided by lending user funds from the pool to validators at a predetermined interest rate.
- Deposits and Withdrawals: The ability to withdraw and deposit assets to the TON Liquid Staking protocol allows users to deposit and withdraw their assets without any predetermined minimum or maximum deposit restrictions. The protocol manages deposits and withdrawals through dedicated smart contracts, ensuring accurate accounting and proper handling of user funds and transactions.
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Staking Profits TON
There are several key advantages of staking Liquid TON:
- Passive Income: Stakers earn regular rewards from the blockchain validation process. These rewards come from gas fees paid by network users and inflation of TON tokens.
- Liquidity: Unlike traditional staking where assets are locked for a certain period of time, Liquid TON staking allows users to withdraw their assets at any time. This is because stakers receive Jetton Pool tokens which they can trade on exchanges or exchange back for TON.
- Accessibility: Staking Liquid TON allows anyone to participate in securing the TON network, regardless of the amount of TON they hold. This is because staking is done through pools, which pool resources from many users.
Risk Staking TON
While staking Liquid TON offers various benefits, it is important to understand the risks as well:
- Slashing Risk: TON delegated to a validator may be partially slashed if the validator misbehaves.
- Protocol Security Risks: There is always an inherent risk that the protocol may contain unknown bugs. This risk applies not only to staking but also investing in TON.
Conclusion
TON staking offers an attractive and accessible way to earn passive income from your TON holdings. By staking Liquid TON, you can not only earn rewards, but you also contribute to the security and decentralization of the TON network. Before starting staking Liquid TON, it is important to do your own research and understand the risks involved.
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How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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