• Staking with Blumstak AI Staking Platform involves locking your digital assets in our AI-driven ecosystem to participate in blockchain transaction validation and block creation. This process supports network security and efficiency while providing participants with staking rewards. Unlike traditional mining, staking is energy-efficient and relies on token ownership and network participation.
  By staking your tokens with Blumstak, you not only contribute to securing the blockchain but also earn consistent rewards. The more tokens you stake, the greater your potential to receive rewards through our advanced AI-optimized strategies.
  

  Mining vs Liquidity Farming vs Staking with Blumstak AI

• Mining
Mining requires significant computing power to solve cryptographic puzzles and create new blockchain blocks. Miners earn rewards through block creation and transaction fees.
• Liquidity Farming
Liquidity farming involves locking tokens into decentralized finance (DeFi) protocols to facilitate trading and earn a share of transaction fees.
• Staking with Blumstak AI
Staking on Blumstak’s platform allows you to lock your digital assets, enabling our AI to validate transactions, secure the network, and optimize block proposals. You earn rewards from transaction fees and block rewards in an efficient, AI-enhanced environment.

Knowing how to estimate your potential staking income is key to making informed decisions.. Calculating projected rewards requires accounting for a few key variables.

Asset Type
The asset you are staking – such as ETH, SOL or DOT – determines the base rewards rate. Each network has its own staking rewards dynamics.

Investment Amount
The amount of tokens you stake is directly proportional to the rewards you can earn. Staking more tokens equals higher potential rewards.

Staking Duration
The length of time you are staking for impacts your cumulative rewards. Longer staking periods lead to compounding rewards.

Staking Rewards Rate
The estimated staking rewards rate (SRR) for staking on that network. Rates vary across assets based on factors like inflation schedules, fees, and the number of stakers.

Accurately calculating staking rewards requires up-to-date reward rate data. Figment’s Rewards Calculator leverages our Rewards API to source real-time Staking Rewards Rates (SRR) for networks like ETH, SOL, and DOT. This powers transparent and accurate staking reward projections.

Main Forms of Staking

The main forms of staking include solo staking, staking services, staking pools, and exchange staking. Each offers different benefits and trade-offs.

Solo Staking

This involves running your own validator infrastructure directly through your own hardware and software. Solo staking gives you full control over the staking process, but requires technical expertise.

Staking-as-a-Service

Staking providers like Figment handle the infrastructure for you, allowing users to stake tokens like ETH through an easy-to-use platform. This removes the operational complexity of solo staking while still allowing users to retain control of their digital assets. Figment also provides portfolio tracking, insights, and robust security for over 30 protocols.

Pooled Staking

By pooling funds together with other users, pooled staking contracts let you stake with little barrier to entry. The pool operator runs the infrastructure and rewards are shared proportionally.

Centralized Exchanges

Some exchanges like Coinbase offer staking services directly, taking custody of your tokens and distributing a percentage of rewards.

Each method has trade-offs between control, convenience, and decentralization.

Accessing Staking Rewards

From exchanges to dedicated staking services, there are many platforms available for accessing staking rewards. Compare security, features, and ease of use. The ideal staking approach depends on your specific priorities and needs.

For most individuals and institutions, using a trusted staking-as-a-service provider like Figment offers an ideal blend of security, rewards optimization, and a seamless user experience.

By relying on a robust professional infrastructure, you avoid the risks and complexities of operating validators yourself.

Staking-as-a-service enables you to tap into staking rewards and support blockchain networks with just a few clicks.

Staking rewards are distributed on different schedules depending on the blockchain.

Staking Misconceptions

While staking offers many benefits, there are also some common misconceptions worth clarifying.

Staking Risks

Staking is often perceived as risky. Validators are penalized for downtime and double-signing.

In reality, risks like impermanent loss and slashing can be mitigated through robust platforms and education.

Robust staking providers like Figment help protect against slashing risks by providing slashing coverage to help mitigate slashing risks. Learn more about our slashing coverage here.

Rewards vs Yield

Staking rewards are sometimes confused with lending yield or interest. Staking is not an investment product; rather, staking rewards come from delegating tokens in order to validate transactions on the underlying blockchain, which helps ensure the security and integrity of the network. This difference changes the risk profile.

All Staking is the Same

In fact, there are many varieties of staking, like pooled staking and solo staking, with different tradeoffs. Evaluating the differences is key to finding the optimal approach.

User-friendly staking services abstract away complexity so beginners can participate. While knowledge helps maximize rewards, it’s not a prerequisite for earning basic staking income.