FIO Staking — Prepared for Launch January 2022
2021 was a challenging year for many of us, but — despite the continued navigation of unprecedented times — the FIO team has been hard at work building a better crypto future. As we finalize our New Year’s resolutions and look forward to a more hopeful 2022, we’re excited to announce something we hope brings you a little extra joy this holiday season: FIO Staking is prepared to launch on mainnet in January 2022.
Many are claiming their waitlist spot to be amongst the first to stake their FIO tokens; the earlier you stake, the more you earn — sign up to join the first staking wave below:
What is Staking?
FIO Staking rewards $FIO holders for participating in on-chain governance. It’s an important evolution of the FIO Protocol, and gives the FIO community a way to contribute directly to the security and growth of the FIO Chain.
Staking is a feature available on proof of stake blockchains, an alternative method to achieve network consensus that is less energy intensive than the proof of work consensus mechanisms of Bitcoin and Ethereum 1.0. In proof of work, computers running the networks use intensive power to solve complex equations to earn block rewards, known as mining, and at the same time help to secure and decentralize the network. Proof of stake is an alternative method that usually involves putting up a certain amount of a coin or token, known as your stake, which allows you to participate in governance of the network and provide distributed network consensus.
By locking your coins or token in a proof of stake network, the protocol may randomly choose your stake to verify a block and typically earn block rewards. While some protocols give those with larger stakes more of an opportunity to be chosen, not all networks base this off of the amount of coins or tokens staked. Some take into account other factors that could impact the amount you earn from staking. Those factors include how long the user has been staking, how many total coins or tokens are staked on the network, or if there is an inflation or deflation rate on the coins or tokens.
Many protocols may have a minimum to put up your own stake, but exchanges and other providers often allow users to add to a staking pool in exchange for receiving a part of staking rewards. As you can imagine, the ability to earn passive income while staking cryptocurrency can be a great opportunity, especially as an alternative — or adjunct — to simply holding long term.
Why Stake $FIO?
Staking is a step toward true democratization and decentralization of blockchain governance, and FIO Staking gives token holders the ability to participate in governance of the FIO Chain and FIO Protocol.
In exchange for staking $FIO tokens, those who stake can earn APR. As the number of FIO Staking participants grows, this return will stabilize downward as staking rewards are distributed across a larger set of those staking; the earlier you stake, the more you earn in the long run. Even still, looking at average APRs across other blockchains, 10–15% return per year still exceeds passive earnings from storing funds in something like a savings or checking account, even at high-yield rates.
Beyond rewards earned, FIO Staking allows for $FIO holders to directly participate in FIO Chain governance. FIO Protocol uses what is called a delegate proof of stake, or DPoS, consensus mechanism, which allows users to commit their stake of coins or tokens as votes — or proxy their vote to a registered proxy. Voting power is proportional to the number of coins held. Votes determine a certain number of delegates who manage the blockchain on behalf of their voters, ensuring security and consensus. Staking rewards are distributed to these elected delegates, who then distribute part of their received rewards to their electors.
Why Support FIO Protocol?
FIO is on a mission to facilitate mass adoption by bringing high usability to the crypto user experience. The FIO Protocol is a blockchain protocol that enables an easier way for users to send, receive, and request any type of cryptocurrency. It is not a standalone wallet, but rather a usability solution that can be integrated into any existing wallet, exchange, or payment processor.
The FIO Protocol acts as a data bridge across all blockchains. It provides a decentralized service layer that records transactional data from other blockchains, without integrating, interfering, transacting, nor competing with these other blockchains directly. This service layer gives end users a streamlined way to transact with any token or coin using a single, human-readable identity that unifies all of a user’s crypto wallets — a much improved experience versus managing multiple, complex, unstandardized wallet addresses and formats.
Staking your $FIO will allow you to directly contribute to the security, governance, and growth of FIO Protocol. More details about how and where users can stake will be released soon; join the waitlist now so you also stay in the loop and join us in January for our FIO Staking launch.
FIO, the Foundation for Interwallet Operability, is a decentralized consortium of blockchain organizations and community members supporting the ongoing development, integration, and promotion of the FIO Protocol. The protocol is an open-source, decentralized usability layer solution that works across all blockchains, and uses human-readable Crypto Handles to replace the complexity, risk, and inconvenience that comes with blockchain-based transactions using public addresses.