Stake SafeCoin & earn Rewards
Proof of Stake (POS): Receive Interest by owning crypto
Owning a POS-Cryptocurrency like SafeCoin makes you a part of the network. Keep your Coins in your wallet and earn rewards by staking to a validator. Sounds complicated? Here is a short explanation why it isn't!
Staking in a nutshell
The SafeCoin Blockchain and it's transactions are running on computers within the network. Those computers are called validators. Those validators need SafeCoins as fuel to cast their votes in our blockchain. In return they get SafeCoins in reward. The amount of stake serves as gravity (stake weight) to a validator. The more stake a validator has, the more reward he gets. And with a certain amount of stake those rewards are higher than the costs. A vital network therefore has a high interest of holding SafeCoins and rewarding you for staking your own coins to a validator.
Decentralization, Commitment & Interest
By staking your Coins to a single or multiple Validators you are supporting a vital and SAFE decentralized network. With each new validator the SafeCoin blockchain grows stronger and more decentralized. Of course you can stake and unstake your Coins whenever you want. And don't worry: You never loose control over your Coins as staking means delegating, not giving away.
After a short waiting period – we call them epochs that last a little more than two days – your Coins are delegated to earn rewards or undelegated in case you want to trade them.
Passive Income and Deflation
The Anual Percentage Rate (APR) for delegated SafeCoins depends on the commission fee a validator charges his stakeholdes. In most cases it is up to 4-6%. But you will see validators in our network that charge a 100% fee and therefore are probably not interested in your stake. All the others are dedicated to provide the best possible performance to attract new stakeholders.
Now let's talk about deflation. SafeCoin has a maximum supply and there are no more new Coins popping up out of nowhere. The APR therefore is only valid for SAFE and can potentially be higher when changing to another currency.