In the current blockchain ecosystem, staking has become an important way of participation, especially on the Opera chain, where FTM, as its native token, plays a crucial role. This article will delve into FTM’s staking mechanism, reward calculation and how to participate in staking to help readers better understand this process.
What is FTM Token?
FTM is the native token of the Opera blockchain and is mainly used to support the operation of the network, including the generation and verification of blocks. Users participate in maintaining the security and integrity of the network by staking FTM, and receive corresponding rewards in the process.
The basic concept of staking: On Opera, staking involves locking a certain amount of FTM to support the operation of the network. After staking FTM, users will be able to receive additional FTM as rewards. In order to become a validator, a minimum of 50,000 FTM must be staked, but regular users can start with 1 FTM and delegate it to existing validators to receive rewards without having the technical knowledge to run a validator.
Liquid pledge model
Opera adopts a liquid staking model, and users can choose to pledge without a lock-up period to obtain the lowest annualized percentage rate (APR), or choose a lock-up period between 14 days and 365 days to obtain a higher APR. This model not only promotes long-term sustainability of the network, but also provides flexibility to stakers.
Reward Calculation: In the liquid staking model, your effective APR is affected by the following factors:
The longer the lock-in period, the higher the APR.
The longer the average lock-up period across all stakers, the APR will decrease accordingly.
The higher the total FTM pledge amount of all stakers, the APR will also be lower.
To get an estimate of potential rewards, you can use the reward calculator provided by Opera.
How to participate in FTM staking
There are two main ways to participate in FTM staking: delegation and running a validator node.
Delegation: If you choose to delegate, you will receive staking rewards, minus 15% of the fees paid to the verifier you delegated. This means you can easily participate without the technical knowledge and operational costs of managing a node.
Validator Node: Running a validator node can earn more rewards, but requires active management, operating costs, and technical knowledge.
Steps to pledge
1. Select the stake amount: First, select the amount of FTM you want to stake, and then click "Select Verifier".
2. Create a new delegate: Click "Create New Delegate" and select a validator from the list.
3. Choose APR: During this process, you can choose a base APR of 1.8% with no lock-up period, or lock your stake for up to 365 days for a higher APR.
4. Start getting rewards: Once the staking is successful, you will start getting rewards. Please note that 15% of the rewards you receive will be distributed as fees to the nodes you delegate.
Rewards and Compound Interest
In the rewards section of the staking page, you can view the amount of FTM you received from staking. You can choose to compound these rewards into your delegation to increase your stake and earn more rewards, or you can choose to withdraw all rewards, transferring FTM directly to your wallet.
Notes on unstaking: It should be noted that when you unstake FTM, there will be a seven-day unstaking period. After initiating unstaking, you will need to wait this period before withdrawing your FTM.
in conclusion
FTM's staking mechanism not only provides users with a flexible way to participate, but also motivates users to support the security of the network through a reward mechanism. Whether you want to run a validator node or simply delegate your FTM, Opera’s liquid staking model can meet the needs of different users. With the development of blockchain technology, FTM staking will become an important way for more and more users to participate in the cryptocurrency ecosystem.