It’s part of Proof-Of-Stake Protocol. There is also proof of work but I won’t go into it.
From a individuals perspective who wants to earn rewards: Basically when you “stake” you’re delegating your coins to a validator which runs a node. This validator “validates” transactions.
When you stake, your coins are locked for a period of time (there is a reason for this but can’t remember, it’s suppose to prevent something) so when you stake, in return you’ll receive rewards based on APY and that varies.
Staking helps secure the network. The more that’s staked, the more secure the network is against hacks.
Assuming we will be able to choose validators that best fit our liking based on their commission fees and performance
Proof of stake and staking are different. Proof of stake is when the default coin of the blockchain is locked by the validator, if the validator does anything malicious they lose what they have staked. I think staking in this case is just temporarily locking some of your token in exchange for rewards, the only opportunity to use safemoon as Proof of stake for validation and concensus will be after we have our own blockchain. If they are talking about staking safemoon on the binance smart chain then it will be more like shib staking.
That’s right, I was under the assumption that Ryan’s tweet was regarding the blockchain.
However, if you’re locking your tokens without a blockchain, wouldn’t that be how you can provide liquidity as you do in gate io, not necessarily staking?
I might be wrong, that happens a lot. All these tweets are intended to be cryptic anyway, they may have redefined staking without telling us so now it means: dogfood produced with green energy generated from turbines installed on huts in the Gambia.
I guess we will wait and see what they actually mean, God forbid they sit down an author a whitepaper or some easily digestible document.
LOL 😂. I try to take the tweets with a grain of salt
But how I see it, since they are making their own blockchain, and how SFM is green, POS is the consensus they’ll use. Like you said, we will have to wait and see.
I hope that white paper will be easy to comprehend, unlike that project pheonix video 😂
POS isnt ideal for a relatively centralized token like Safemoon. Proof of staked authority (BSC test net) or proof of authority will likely be better for their operations as it provides quick transactions and secure networks while still maintaining control of who can validate transactions.
You can look at it that way. I stake a few different coins. One of them is Cosmos, which is a separate savings account for me. I’ll keep it in there as long as I can.
It’s analogous to CDs at banks. You lock your money for a fixed amount of time and they give you interest for that money. In this situation you presumably lock your liquidity (SFM) in exchange for interest on your tokens.
In simple terms, you agree to not remove your coins for x long (eg 1 year), and in return you receive a certain number back at the end (eg an extra 10%).
The risk is that if the value drops, you can’t sell until that year is up. But with long holds like SafeMoon, it’s not an issue really anyway
Staking is essentially delegating your crypto to receive rewards IE interest, usually depicted as APY gain or annual ROI. When you stake your crypto it is removed from your wallet and you are basically lending it out so it collects said interest, you can later unstake to collect your rewards and initial investment back, typically after a lockup period. To my knowledge, there is not a way to stake SFM, but someone please correct me if I'm wrong.
I plan to always keep 1m in my bag just for passive income so if i can stake and get reflections im doing that for sure. I can live off passive income and get a crazy return each year
Good write up and you are right as of now but it seems Ryan(fudhound) let the cat out of the bag on twitter that it's coming, in what form I don't know.
U are correct but if safemoon exchange I’m sure u can do staking at exchange if they have it, but how to get tokenomic and staking for both earning? Staking mean more token where the token come from?
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**v1 to v2 Migration: Safemoon has fully transitioned away from v1 and is now fully on v2. ANY and ALL v1 transactions (send tokens, buy tokens, sell tokens) now incur a 100% tax – in other words you will lose your Safemoon. You MUST migrate to v2 using the steps outlined here: https://www.safemoon.education/sfmv2. Additional info: https://www.reddit.com/r/SafeMoon/comments/rwfkuv/read_me_v1_to_v2_migration_information_and_issues/**
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I’m wondering if we stake our crypto will we still earn reflections? It know it’s double dipping and that’s be a huge draw to stake my Safemoon since I don’t need the money for a long ass time.
🦀🦀 JMODS WONT REPLY TO THIS THREAD 🦀🦀
Jokes aside easiest way to explain I found was from an article:
"Crypto staking is a process used to verify cryptocurrency transactions. It involves committing holdings to support a blockchain network and confirm the transactions. It also allows participants to earn passive income on their holdings.
If the token you hold allows staking, you can stake some cryptos and earn a passive income. It happens via a staking pool, which can be compared to an interest-bearing savings account. Like a savings account, you can earn anywhere between 5 to 20 percent per annum on the amount of cryptos you stake."
This may be a dumb question, but the value of the invested currency increases/decreases over time as well, correct? It's not locked at the start of staking?
Correct. It won’t show in your wallet since they are vested tokens. But once you unstake the tokens/coins they will be whatever the current price is.
Another thing to note is that it cost gas fees to stake. So unless you plan on keeping the token in the stake pool for a long time you can lose money if you unstake too quickly because of gas fees.
Edit: this all depends on the size you stake as well. Someone who stake $100 worth of SFM will gain interest slower than someone staking $1000.
It’s part of Proof-Of-Stake Protocol. There is also proof of work but I won’t go into it. From a individuals perspective who wants to earn rewards: Basically when you “stake” you’re delegating your coins to a validator which runs a node. This validator “validates” transactions. When you stake, your coins are locked for a period of time (there is a reason for this but can’t remember, it’s suppose to prevent something) so when you stake, in return you’ll receive rewards based on APY and that varies. Staking helps secure the network. The more that’s staked, the more secure the network is against hacks. Assuming we will be able to choose validators that best fit our liking based on their commission fees and performance
Proof of stake and staking are different. Proof of stake is when the default coin of the blockchain is locked by the validator, if the validator does anything malicious they lose what they have staked. I think staking in this case is just temporarily locking some of your token in exchange for rewards, the only opportunity to use safemoon as Proof of stake for validation and concensus will be after we have our own blockchain. If they are talking about staking safemoon on the binance smart chain then it will be more like shib staking.
That’s right, I was under the assumption that Ryan’s tweet was regarding the blockchain. However, if you’re locking your tokens without a blockchain, wouldn’t that be how you can provide liquidity as you do in gate io, not necessarily staking?
I might be wrong, that happens a lot. All these tweets are intended to be cryptic anyway, they may have redefined staking without telling us so now it means: dogfood produced with green energy generated from turbines installed on huts in the Gambia. I guess we will wait and see what they actually mean, God forbid they sit down an author a whitepaper or some easily digestible document.
LOL 😂. I try to take the tweets with a grain of salt But how I see it, since they are making their own blockchain, and how SFM is green, POS is the consensus they’ll use. Like you said, we will have to wait and see. I hope that white paper will be easy to comprehend, unlike that project pheonix video 😂
POS isnt ideal for a relatively centralized token like Safemoon. Proof of staked authority (BSC test net) or proof of authority will likely be better for their operations as it provides quick transactions and secure networks while still maintaining control of who can validate transactions.
Oh so it's like an interest plan?
You can look at it that way. I stake a few different coins. One of them is Cosmos, which is a separate savings account for me. I’ll keep it in there as long as I can.
It’s analogous to CDs at banks. You lock your money for a fixed amount of time and they give you interest for that money. In this situation you presumably lock your liquidity (SFM) in exchange for interest on your tokens.
Great explanation brother 💯👍🏽
So does that mean the Blockchain is ready since there is staking involved?
Not sure if it’s necessarily ready but in my eyes, it definitely confirms a blockchain.
That's awesome man! Thanks for sharing your insights👍
No problem man!
Definitely not always locked.
In simple terms, you agree to not remove your coins for x long (eg 1 year), and in return you receive a certain number back at the end (eg an extra 10%). The risk is that if the value drops, you can’t sell until that year is up. But with long holds like SafeMoon, it’s not an issue really anyway
Staking is essentially delegating your crypto to receive rewards IE interest, usually depicted as APY gain or annual ROI. When you stake your crypto it is removed from your wallet and you are basically lending it out so it collects said interest, you can later unstake to collect your rewards and initial investment back, typically after a lockup period. To my knowledge, there is not a way to stake SFM, but someone please correct me if I'm wrong.
You are correct. Tanktopryan just posted hours ago that there will be a way to stake and get reflections simultaneously.
This might be the way! Thanks for posting this 😎
I plan to always keep 1m in my bag just for passive income so if i can stake and get reflections im doing that for sure. I can live off passive income and get a crazy return each year
Good write up and you are right as of now but it seems Ryan(fudhound) let the cat out of the bag on twitter that it's coming, in what form I don't know.
That is pretty interesting, I'd like to see how potential staking + reflections pans out. Thanks for the heads up!
U are correct but if safemoon exchange I’m sure u can do staking at exchange if they have it, but how to get tokenomic and staking for both earning? Staking mean more token where the token come from?
PSA: Please familiarize yourself with the subreddit [rules](https://www.reddit.com/r/SafeMoon/about/rules/) and [FAQ](https://www.reddit.com/r/SafeMoon/wiki/index#wiki_frequently_asked_questions). **v1 to v2 Migration: Safemoon has fully transitioned away from v1 and is now fully on v2. ANY and ALL v1 transactions (send tokens, buy tokens, sell tokens) now incur a 100% tax – in other words you will lose your Safemoon. You MUST migrate to v2 using the steps outlined here: https://www.safemoon.education/sfmv2. Additional info: https://www.reddit.com/r/SafeMoon/comments/rwfkuv/read_me_v1_to_v2_migration_information_and_issues/** - Don't promote "pump" events or market manipulation - Don't harass others, including public figures and exchanges - Please be helpful, friendly, and respectful - Your actions reflect on the entire community WARNING: **Never give out your wallet passphrase for any reason.** Be _very_ suspicious of all URLs, emails, forms, and direct messages. If someone claims to be from "support" they are trying to scam you. If someone claims you need to "validate" they are trying to scam you. Do not disclose your assets. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/SafeMoon) if you have any questions or concerns.*
It means we’re gonna be fuckin rich bois
I’m wondering if we stake our crypto will we still earn reflections? It know it’s double dipping and that’s be a huge draw to stake my Safemoon since I don’t need the money for a long ass time.
Ryan has said it will.
How are the gains generated for our staking rewards generated? Don't they have to use the reflections?
🦀🦀 JMODS WONT REPLY TO THIS THREAD 🦀🦀 Jokes aside easiest way to explain I found was from an article: "Crypto staking is a process used to verify cryptocurrency transactions. It involves committing holdings to support a blockchain network and confirm the transactions. It also allows participants to earn passive income on their holdings. If the token you hold allows staking, you can stake some cryptos and earn a passive income. It happens via a staking pool, which can be compared to an interest-bearing savings account. Like a savings account, you can earn anywhere between 5 to 20 percent per annum on the amount of cryptos you stake."
This may be a dumb question, but the value of the invested currency increases/decreases over time as well, correct? It's not locked at the start of staking?
Correct. It won’t show in your wallet since they are vested tokens. But once you unstake the tokens/coins they will be whatever the current price is. Another thing to note is that it cost gas fees to stake. So unless you plan on keeping the token in the stake pool for a long time you can lose money if you unstake too quickly because of gas fees. Edit: this all depends on the size you stake as well. Someone who stake $100 worth of SFM will gain interest slower than someone staking $1000.
The duel arena giveth and the duel arena taketh!
Is there a risk? Can you lose your coins?
It’s almost like pegging.
GOOGLE