Fantom Staking?
Staking Fantom is an awesome way to earn passive income while removing your ability to paper hands on an awesome project. By Staking Fantom you can expect to earn from around 4.51% all the way up to 13.81% if you lock your Fantom up for a year. These values are correct at the time of writing this but what I would suggest is checking out our Fantom Asset Page which has up-to-date values on everything you need to know about staking Fantom.
Fantom is a directed-acrylic-graph (DAG) blockchain that implements a DAG proof of stake (DAG-POS) consensus protocol. Hence by using a DAG system, Fantom nodes gossip transactions between nearby nodes to finalise transactions. This allows for both faster transaction speeds and finality than other networks. Fantom is able to process 4500 transactions per second and reaches finality in 1-2 seconds.
How much can I earn staking Fantom?
Staking on Fantom takes two major forms, unlocked and liquid staking. Unlocked Fantom staking is simply delegating your token voting power to a validator who then validates transactions on your behalf. This is referred to as unlocked because users are able to unstake at any time.
Liquid Staking requires the user to lock up their Fantom token for a period of 2 weeks to a year. This system incentivizes users to lock up their token for longer as their reward rate increases with your lockup time. Subsequently, users lock up for 14 days can expect to receive a 4.51% return while users who are locked up for a year can expect a 13.81% return on their delegated Fantom.
Most Importantly when your Fantom is locked, Fantom gives you the ability to mint sFTM to use as collateral in their system. This reduces the selling pressure of FTM by removing tokens from the circulating supply while also allowing users access to the Fantom Defi Suite while keeping their FTM locked up.
What you need to stake Fantom
- Fantom Wallet
- Enough Fantom to cover Fees, fees are quite minimal so it’s unlikely you need to worry about this
Step 1 – Setting up your Fantom Wallet
Head to the fWallet signup site and click on create wallet. You will then have to follow the intuitive on-screen directions to finish the setup of your Fantom Wallet
Step 2 – Finding your Fantom Wallet Address
On your Fantom wallet main page click on the “receive” button as shown. You can then either copy the address by clicking on the copy button or the QR button to scan the wallet address.
Step 3 – Selecting your Fantom Validator
Selecting your Fantom Wallet validator is an important step as choosing the wrong validator can lead to your Fantom being slashed. By clicking on the Stake Tab and then “add delegation”, the wallet brings up the list of available validators. From here you can find out more about a validator by clicking on their name.
Step 4 – Staking your Fantom
After selecting your preferred validator. All that’s left to do is inputting the amount of Fantom you would like to stake and then confirm the transaction.
Step 5 – Locking your Fantom Delegation
As we discussed earlier, you now have the option to lock your delegated Fantom up for up to 365 days. Carrying this is as simple as selecting how long you would like to lock your tokens for and then confirming the transaction.
Conclusion
Delegating Fantom was a simple process that got a passing grade in our three essential criteria.
- Fantom is quite a popular token that is available on major CEX’s like Binance and so buying the Fantom and moving it into the fWallet we made was easy.
- Furthermore, the user interface of the fWallet application was straightforward and intuitive.
- Finally, as long as users have not locked their stake, unstaking Fantom is an easy process that involves a below-average unbonding period of 7 days.
In conclusion, staking your Fantom is a great way to diversify your passive income streams. You can get a much more in-depth projection of your future returns by using our advanced staking calculator which can be found here;