One of the Curve Wallet features the CryptoCurve community is most excited about is staking. We have received several questions about how staking works, so we put together this post to provide some additional detail.
What is Staking?
In blockchain applications, “staking” refers to mechanisms that reward users for holding a large amount of a token or coin (“having a stake” in it). Staking has been employed in several ways by blockchain technologies, most notably as the key component of proof-of-stake consensus mechanisms.
But staking is not only for proof-of-stake. In the Curve Wallet staking serves as the basis for an incentive system that provides several unique benefits for users of the CryptoCurve ecosystem.
Token Rewards
At its core, staking on the Curve Wallet allows users to temporarily lock up (“stake”) their CURV tokens to receive token rewards in exchange. By staking their tokens, users will receive token rewards from ICOs hosted on the CryptoCurve platform. In effect, this single investment into CURV unlocks the ability to actively invest in every ICO hosted through the platform. The more CURV tokens staked, the more the user will earn.
Staking rewards will be tier-based: top 20% of CURV holders will receive 40% of total airdrops; mid 40% of CURV holders will receive 40% of total airdrops; bottom 40% of CURV holders will receive 20% of total airdrops.
Staking rewards will be drawn from a variety of sources, including ICOs hosted on the Curve Wallet, CryptoCurve partner organizations, and tokens from CryptoCurve itself.
BlockMedX’s MDX token was recently announced as one of the first tokens to be featured as a staking reward on the platform.
Users will be required to stake CURV tokens for 1 quarter (3 month period) to be eligible for the token rewards from that quarter.
Token Utility
Utility of the CURV token is centered around transactions on the Curve Wallet (e.g., use CURV token for discounted exchange fees). One of the longer-term challenges for holders of transaction-based utility tokens is that, while adoption of a token’s application may increase use and trade volume, increasing trade volume does not necessarily lead to an increase the token price, even with a fixed supply of tokens. This is where another benefit of staking comes in.
Staking is one of the several additional token utility features that CryptoCurve has included that create additional incentives for users to utilize CURV tokens for more than simply transactions. The net result is well-rounded token utility that provides economic incentives for short, medium, and long-term.
CryptoCurve Partners
In addition to the benefits for Curve Wallet users, staking also provides important benefits for CryptoCurve and its partners. CryptoCurve partners organizations gain the opportunity to engage with new audiences among Curve Wallet users by including their tokens in the rewards program, and CryptoCurve has a dedicated channel to introduce the community to a variety of new projects.
Summary
- Stake your CURV tokens, earn token rewards
- Increase the amount you stake to enter higher tiers and get more rewards
- Staking has benefits for Curve Wallet users, investors, and CryptoCurve partners
- Stay tuned for more details on staking coming soon!
Have any other questions about staking? Or about any other features in the Curve Wallet? Join us on Telegram, or leave a question below!
