Staking Project | BSC — Smart Contract Platform in Binance Dual Chain System
Learn about the Binance Smart Chain and get more returns with BNB Staking by rBNB
Binance chain is the underlying blockchain of Binance Dex, the decentralized exchange of cryptocurrency, providing technical support for its short and fast processing of a large number of transactions, but at the same time, the increased efficiency and security brings the problem of low scalability, which is not conducive to the development of the Binance chain ecosystem. The prosperity of the ethereum ecosystem suggests that programmable smart contracts may be just one of the right solutions for the right problem.
To this end, on the fourth anniversary of Binance chain’s mainnet launching, the Binance team launched its parallel chain, the Binance Smart Chain, which supports smart contract related functions and is compatible with the existing ethereum system，in order to improve the scalability of the Coinan chain ecosystem.
BSC Technical Features
BSC and BC are two parallel chains that are independent and complementary to each other, and the assets on the chains can be transferred seamlessly through cross-chain communication protocols, so the interoperability is quite high. Meanwhile, compatibility with Ethereum is a major advantage of BSC over other public chains. Since the Gas fee of BSC is much lower than that on Ethereum, BSC has attracted many applications originally built on Ethereum once it was launched.
BSC’s consensus mechanism PoSA (Proof-of-hold consensus algorithm) combines DPoS consensus and PoA consensus. DPoS is used to strengthen community governance, while PoA is introduced to increase the network’s tolerance to malicious attacks and ensure the network can operate safely.
BSC staking status
According to BSC’s whitepaper, BNB is a native token on both BC and BSC. Therefore BNB will be used to pay BSC smart contract deployment fees, staking to select BSC validators, and performing cross-chain operations, in addition to being a payment unit on BC and Binance Dex. The extensive Binance ecosystem also brings many other usage scenarios to BNB.
Looking at the design of BSC, the validator set is elected every 24 hours and the top 21 validators in terms of total staking will become part of the validator set in the next round. The validators in the current validator set will produce blocks with the same probability. After deducting the commissions given to the validators, the staking rewards will be distributed to the delegators in proportion to the staking, so the more the total staking of a node, the less the reward each delegator can get, and thus the delegators will tend to choose the secure nodes with relatively less total staking within a certain range.
There is no inflation mechanism for BNB, but the Binance team will be regularly destroying a certain percentage of tokens so that the supply of BNB will decrease with the passage of time. Currently, Binance team will permanently destroy BNB every quarter with reference to the total transaction volume until 100 million BNB (50% of the total circulation) are destroyed. According to the disclosure on Binance’s official website, a total of 31,862,964 BNB have been destroyed.
BSC implements the staking logic through BC, all staking actions will be recorded on BC and staking rewards will be distributed at around 0:00 UTC every day. Binance official website staking data shows that staking BNB can currently earn an annualized return of 11.8%. The delegator will receive the reward after 3 days for initial participation in staking, and thereafter receive the staking reward at 0:00 UTC each day. In addition, BNB have a 7-day release period.
How to participate in BNB staking?
1.If using the Binance extension wallet:
One word minimalist tutorial: open the staking page on the Binance official website, click “Connect Wallet” in the upper right corner to create or login to your wallet, (you need to have at least 1 BNB) and select the velidator on the staking page to delegate.
Details can be found in the official video tutorial at:
https://docs.binance.org/smart-chain/wallet/staking.html
2. If using the Trust Wallet App:
One word minimalist tutorial: download and open the official coin wallet App Trust Wallet, click into the BNB page (you need to have at least 1 BNB) and go to the validator list through the “More-Stake/Stake Details”path, and select the validator for staking.
Download Trust Wallet at：https://shimo.im/docs/ChqWhJdwqryW9wTk
Details can be found in the official video tutorial at:
https://community.trustwallet.com/t/bnb-staking-with-trust-wallet/113243
How to get more return through BNB Staking?
rBNB is a redeemable staking asset issued by StaFi. When a user stakes BNB through the StaFi rBNB App, StaFi will calculate and issue rBNB to the user based on the amount of BNB staked by the user and the real-time exchange rate. Users can trade and lend rBNB to increase the liquidity of staking assets.
After the rBNB feature goes live, StaFi will simultaneously launch the rBNB launch incentive program and also provide liquidity mining incentives on some DEXs, which will combine to give users a much higher return than if they only stake through the official website wallet.
In addition, the liquidity advantage of rBNB is particularly evident in volatile markets, where staked BNB require a 7-day wait for redemption, yet rBNB can be traded directly on the EX or DEX via the rBNB/BNB trading pair.
rBNB App staking Portal: https://app.stafi.io/rBNB
rBNB detailed tutorial: https://docs.stafi.io/rtoken-app/rbnb-solution/staker-guide
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