Passive Income with Cobo Wallet: How to stake TOMO
What is TOMO?
TOMO is the native currency used in the TomoChain eco-system.
TomoChain is an innovative solution to the scalability problem of the Ethereum blockchain, and other current blockchain platforms. Bitcoin and Ethereum can only process around 7 and 15 transactions per second (TPS) respectively. On the other hand, Visa and MasterCard can handle about 5,000–6,000 TPS.
Comparatively, although TomoChain can only process 2,000–5,000 TPS currently, the number is expected to reach an astronomical 20,000–30,000 TPS once sharding is enabled, .
TomoChain relies on a system of 150 Masternodes with Proof of Stake Voting (POSV) consensus that can support low fees (approx. 1/100 of that of Ethereum’s) and 2-second transaction confirmation times. Security, stability fand chain finality are guaranteed via novel techniques such as Double Validation, staking via smart-contracts and true randomization processes.
How to stake TOMO?
Similar to other tokens, you can either run your own Masternode or stake your TOMO with existing Masternodes to earn a passive income.
To become a Masternode Candidate, you must deposit 50,000 TOMO using the official on-chain governance dapp. For the TOMO network, only 150 nodes will be elected as Masternodes on the network. Masternodes are elected by the TomoChain community, where TOMO holders vote for one or several Masternode Candidates by sending TOMO through a smart contract mechanism.
To stake your TOMO with a Masternode, you can do it with any partnering platforms like Cobo Wallet.
You may earn more from Masternodes with lower capacity (having fewer votes) because the reward for every Masternode is constant. If more people vote for the same Masternode, the reward is divided among more people and therefore one vote receives fewer rewards.
However, Masternodes with fewer votes are more likely to lose its Masternode status and automatically stops earning rewards for you. If the Masternode is no longer in the top 150, you will need to unvote and wait for 96 epochs (approx 2 days) to be able to vote again. During this process, no rewards will be earned.
In contrast, voting for higher-ranked nodes will earn slightly less rewards, but is safer and probably more profitable in the long-run if you cannot commit the time to observe the rankings.
Cobo is one of the Masternodes that is fully capable and committed to the overall health of TomoChain’s ecosystem in the long-run. If you haven’t downloaded Cobo Wallet, you can find us on all major app stores (e.g., Play Store, App Store) or download it directly from our website.
You can start earning TOMO rewards with Cobo Wallet through staking with as little as 10 TOMO, with rewards paid out every 7 days. The rewards are proportional to how much you put in. The more you deposit, the higher your reward. Users can expect to earn a handsome interest rate of approximately 6% per year just by staking with Cobo Wallet.
How?
- Store your TOMO into Cobo Cloud Wallet.
- Tap on Finance tab and choose the amount of TOMO you want to stake.
- That’s it! There is no lock-in period, however do note that rewards for current period will be forfeited if you withdraw before the end of the staking period.
Is there any risk to stake TOMO?
There is no risk to stake TOMO. You will always keep possession of the private keys by leasing to masternodes. In case your chosen node fails to maintain constant uptime, you will only miss out a small percentage of the rewards.
Will the rewards for staking TOMO change over time?
Yes, the rewards will change according to the number of coins staked. It’s just a balance between demand and supply.
How does Cobo charge?
Cobo takes 10% of the TOMO rewards. Holding your assets in Cobo Wallet will always be free.
About Cobo
Cobo is a company that is firmly committed to supporting blockchain development and making cryptocurrencies easy to own and use. We emphasize long-term security, reliability, and convenience. Our key products and services reflect that vision. Altogether, Cobo offers a secure mobile wallet (Cobo Wallet), high-end cold storage wallet for advanced users (Cobo Vault), and custodial services for institutional investors (Cobo Custody).
For more information about Cobo, visit https://cobo.com
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