Staking Application Access
Last updated
Last updated
Staking for an ERC-20 token involves locking up a certain amount of the token to participate in the network's governance and security while earning rewards. Unlike traditional proof-of-work mining, which requires significant computational power, ERC-20 staking is often more accessible, allowing holders to contribute to network consensus using their existing tokens. When users stake their ERC-20 tokens, they typically delegate their voting rights or validation responsibilities to a staking pool or validator, ensuring the network remains secure and decentralized.
The rewards for staking are usually distributed in the same ERC-20 token, encouraging users to hold and stake their assets rather than trading them. This process not only helps maintain the token's value but also enhances community engagement, as stakers often have a say in protocol upgrades and governance decisions. Additionally, some platforms offer innovative mechanisms, such as liquidity mining, where stakers can earn extra rewards by providing liquidity to decentralized exchanges.
Overall, staking ERC-20 tokens fosters a sense of community and alignment of interests among token holders, driving the growth and sustainability of the ecosystem. It is an attractive option for those looking to generate passive income from their cryptocurrency holdings while contributing to the network's overall health and security.
The way staking works is the following :
In this context, Δpi represents the individual productivity of user U between the block numbers ti−1 and ti, while ΔPi\Delta P_iΔPi indicates the overall productivity within the same block range. Additionally, ΔGi\Delta G_iΔGi refers to the gross product for the interval between ti−1t_{i-1}ti−1 and tit_iti. This formula guarantees that there are no advantages to exiting early or entering late in the calculation process. The rewards a user can earn over a given period are determined by their total productivity during that timeframe. The formula has been streamlined using Solidity and a generalized design to ensure compatibility with all DeFi products. It is important to note that the smart contract can be activated for each computation based on the following events:
Whenever the productivity of a user changes (increase/decrease).
Whenever a user withdraws.
We aim to developp our own smart contract for staking. We intend to provide Synk's users with exclusive access to the application based on their staking of a specified number of tokens, creating a unique and rewarding experience. This staking requirement will not only incentivizes users to engage more deeply with the platform but also fosters a sense of ownership and commitment to the ecosystem. By locking up their tokens, users contribute to the network's security and stability while being rewarded for their participation. This model encourages long-term investment, aligning the interests of both users and the platform.
Additionally, staking serves as a way to filter users, ensuring that those who are genuinely interested in the application gain access, thus building a more dedicated community. This approach creates a sense of exclusivity, motivating users to stake more tokens to gain access. Moreover, it strengthens the overall token economy, as the demand for tokens increases with user participation. By implementing this staking model, We aim to cultivate an engaged and loyal user base, ultimately driving the success and sustainability of the application.