Eos is a Blockchain software architecture. The market cap is $2,554,465,695 and the 24h volume is $2,934,421,701.
Eos blockchain consensus is achieved via Delegated Proof of Stake. Investors can leverage their crypto via creating blocks. Currently there are 3 options to earn passive income and staking rewards with your Eos investment as outlined below.
Run a Block Producer
Run a Standby Block Producer
- How to stake EOS?
Staking in Eos is called ‘block producing’.
Block Producers run nodes to maintain the EOS Mainnet.
Everybody holding EOS tokens can vote for the Block Producers of his choice.
The 21 Block Producers with the most votes will be the only ones, who actually produce blocks.
Each token has the ability to vote for 30 different Block Producers.
However, one token cannot be used to vote for the same BP twice.
This means that if only 1 Block Producer is voted for, they will only receive 1 vote for each token you stake.
- Which network metrics do the rewards depend on?
Eos has a fixed 5% annual inflation.
4% goes to a savings fund, which might distribute the funds to the community later on.
1% goes to Block producers and Standby Block Producers.
Out of the 1% that are given to block producers, only 0.25% will go to the actual 21 producers of the blocks.
The other 0.75% will be shared amongst all block producers and standby block producers –
based on how many votes they receive and with a minimum of 100 EOS/day.
Why are Block producers not sharing the rewards with their voters?
According to the EOS constitution Block Producers are not allowed to share rewards with their voters. Even though we are currently not aware of any Block Producer sharing the rewards, they do have the capability to.
- Why should I vote for a Block Producer?
Block Producers are running and maintaining the EOS Mainnet, where many important transactions and dapps are deployed.
It is worthwhile to vote for honest, engaged, transparent Block Producer, to keep the Network healthy.