PhoenixDAO’s Flexible Staking Mechanism Helps Investors Maximize Interest Earnings
Many interested in crypto often wonder about staking.
Some virtual currency enthusiasts are enamored with the opportunity to make passive income by receiving token rewards. Others turned off by the rising costs of crypto mining are interested in different ways to diversify assets.
The ability to passively make money through staking, where crypto is locked by a user to support the security and stability of a blockchain network in exchange for rewards, has attracted rapt attention.
In June 2021, staking infrastructure provider Blockdaemon revealed they successfully raised $28 million in a fundraising round.
A summer JPMorgan report explains “Yield earned through staking can mitigate the opportunity cost of owning cryptocurrencies versus other investments in other asset classes such as US dollars, US Treasuries, or money market funds in which investments generate some positive nominal yield.”
Generally, a staking transaction can be completed in just minutes by those properly following instructions from a crypto wallet and staking platform. Typically, fixed staking (without premature withdrawal opportunities) affords better chances for higher interest rates.
To assuage security fears, some projects even turn to cold staking, where coins are stored on an outside piece of hardware, like a cold wallet such as Ledger.
Understanding Staking On PhoenixDAO
Overall, the flexibility of staking is one of its strongest advantages for creating a passive income stream. For example, with Phoenix DAO’s staking dApp, users can earn instant rewards of the native PHNX coin once transactions are processed.
Those who stake on PhoenixDAO have access to a comprehensive dashboard to quickly review active staking campaigns and historical endeavors. Users have customization over the number of days and PHNX to be staked before agreeing to contract terms.
V2 of the staking dApp will follow in the footsteps of the first version originally launched in 2020. Standard APR for staking currently rests at 20% for 365 days. In addition to this offer Farming, users who are contributing to the PHNX:ETH liquidity pool on Unisap are going to be able to stake their LP tokens to yield even higher returns.
The PHNX token is the engine of the PhoenixDAO ecosystem and is the main reward for stakers. The ERC-20 based utility token is available on platforms like Binance Smart Chain and Polygon. People who own PHNX can also participate in governance activity for the entire PhoenixDAO network.
According to the PhoenixDAO team, all spending will be based on voting decisions. The entire project is self-sustaining, giving token holders a large degree of power as outside donations are not relied on. Eventually as the liquidity pool grows, ETH and DAI will join PHNX as options for coin rewards.
One of the biggest advantages of staking is the presence of platforms like PhoenixDAO that makes the process relatively simple. All a prospective staker must do is follow a list of steps and be prepared to allocate a percentage of their portfolio. No complex mathematics or heavy research is required.
Staking’s Advantages Over Mining For Residual Income
Miners need to purchase expensive equipment that can be hard to set up and get running, while the hard work behind staking architecture is handled by development teams.
Crypto staking has become a popular tool for people interested in creating a residual income stream.
While locking coins for periods of time does run the risk that holders can miss out on big price surges, attractive APRs often make the risk worthwhile and turn digital assets into a lucrative investment vehicle.
Prospective stakers should always study the projects they are looking to engage with and ensure they have a strong community, a valid product, and team members who actively look to partner and collaborate with others as necessary.
Post source: Rediscovering new ways of earning passive income with staking dapp v2.