Token staking gives currency holders incentive to be part of the the network. It gives them the ability to earn more tokens for their holdings. This is quite similar to how someone would receive interest for holding money in a bank account.
Decentralised infrastructure rely on community participation. Staking is one of the effective mechanics of how participation can be facilitated. Users from the community can stake some or all of their share to participate in the functioning of the project and are either incentivised or penalised based on roles assigned when governing the network.
What are the advantages of Staking?
Staking provides many economic incentives to the project and also facilitates great community and involvement.
How projects benefit:
Community engagement and influence
Governance and voting can be provided by community
Securing infrastructure by community participation
Marketing is done through community
How community benefits:
Rewards and incentivisation schemes
Continuous awareness about the project
Ability to shape and guide the project
What is staking with ADD.xyz?
The ability to stake ADD tokens will be to get preference based on the following:
Number of tokens staked
Age of staking
The details of the above will be elicited on a future iteration of the roadmap and white paper
Why stake with ADD.xyz?
ADD.xyz' vision is to create and grow DeFi for Enterprises. Products such as Lending and Derivatives that will be created and executed on the ADD.xyz will generate unprecedented transaction volumes. ADD.xyz intends to charge a small fee to facilitate these transactions.
ADD.xyz will apply a small % basis points in fees for each of the transactions, across all transactions passing through the network. This fee will be split into the following:
Burn (e.g. 0.05%)
Stake (e.g. 0.10%)
Burn: A % of token fees will be burnt, thus resulting in a reduced supply.
Stake: A % of tokens fees will be accumulated, calculated and distributed to community members who have staked.
What are the project timelines for staking?
ADD.xyz will create the infrastructure for staking within the first year of the TGE. However, the staking rewards themselves are dependent on when the products - lending and derivatives will be rolled out to production and be operational on the mainnet with a functioning protocol.