What is FLOW?
Staking Flow allows you to earn passive income and support a blockchain that looks to combat the congestion bottleneck of existing blockchains. It is targeted at gaming and social networks and is intended to be highly scalable to ensure low transaction fees when interacting with these dApps. They plan to achieve this by using a multi-node architecture, meaning that nodes are specialized to carry out one of the following tasks; Collection, Consensus, Execution, and Verification. By having nodes specialize in one role, Flow is able to improve the efficiency of the throughput of their network.
- Consensus nodes help in decisions on the presence and order of transactions on the blockchain.
- Verification nodes take care of maintaining and supervising the execution nodes.
- Execution nodes, as the name implies, are responsible for the computation work related to every transaction.
- Collection nodes are involved in improving the data availability and network connectivity for decentralized apps.
Information Quoted from the Flow Port Org Websitehttps://www.onflow.org/
How much can you earn from staking FLOW?
You can participate in the staking operation of the Flow Network by delegating your tokens to an established node. Epochs on the Flow network are roughly a week-long (7 pm UTC each week) and thus delegators can expect a weekly payout. Node operators take an 8% commission from users who delegate to their node as an operating cost leaving 92% of the reward for the user.
What do you need to stake FLOW?
- Flow Port/Blockto Account(Step 1)
- Enough Flow to pay for fees, roughly 0.01 FLOW
Step 1 – Creating your Flow Port/Blockto Account for staking FLOW
To start off, you will need to create your Flow Port Account. You can do this through Blocto or Ledger, but for ease, we have chosen to use Blocto. Your first step is going to be heading to the Flow Port site. Subsequently, you will choose to signup and then follow the instructions on-screen to finish the setup of your account and enter the Flow Port.
Step 2 – Updating your Flow Port Account for Staking FLOW
Once in your Flow Port Account, before you can stake/delegate, you will have to update your account. This is done by simply running the update transaction in the stake and delegate section of the website. In addition, the transaction fee is 0 so users won’t need any FLOW to complete this step.
Step 3 – Staking your FLOW
Staking your flow from within the Flow Port Application is quite a simple process. Your main consideration is correctly selecting the node you would like to stake to. Furthermore, your stake will not be active until the next epoch. This means that you can expect to wait up to a week to see your delegation confirmed.
Step 4 – Done!
Conclusion on Staking FLOW
When assessing the ease of staking a token, Staking Rewards like to assess the process’s three fundamental parts; Buying your FLOW and sending it to the FLOW PORT, Staking your FLOW on the FLOW Port, and unstaking your FLOW on the FLOW Port.
- Since FLOW is a relatively large token with a high valuation, it is available to buy on major CEX like Binance. If a token is available on these exchanges, we can give it a passing grade for criteria 1 as most CEXs have intuitive user interfaces.
- Our experience using the FLOW port was relatively simple, boasting a simple user interface with good visual spacing while remaining feature-rich but not to the point of being overwhelming. Thus we have chosen to also give FLOW a passing grade on our second criteria
- Finally, we arrive at unstaking your FLOW, although an easy process, your FLOW tokens will be locked till the end of the epoch. FLOW epochs last for a week and thus you can minimize your risk here by unstaking towards the end of the current epoch which you can track here.