Polygon is a Layer 2 blockchain-agnostic scaling protocol. It is the first platform that allows for easy and well-structured Ethereum scaling. The protocol was specifically designed for Ethereum and helped connect Ethereum Chain with other ETH-compatible Blockchains. MATIC, the native token of Polygon Network, is a Layer-2 scaling solution that increases transaction throughput for developers and users.
In this article, you will learn how to stake Polygon. Staking is delegating MATIC (or any other token) to validators that run nodes on Polygon Network. To earn rewards, these tokens will be locked in your wallet. Reward points are earned every time your wallet creates a new block. This can occur multiple times per day, depending on network volume and the age of coins in your wallet. Staking is basically a way to secure the network, and you are rewarded for it.
Polygon (MATIC) Staking
Staking, in simple terms, is the process of earning rewards for owning specific cryptocurrencies. If a cryptocurrency allows staking, such as Tezos, Cosmos, or Ethereum (via the new ETH2 update), you can “stake” your holdings to earn a percentage-rate return over time. This is usually done via a “staking pool”, which can be compared to an interest-bearing savings bank. Staking rewards do not depend on the price of the cryptocurrency that you are investing in. Because you get rewards in cryptocurrency and not fiat, this is why. This feature is better suited for long-term rather than short-term holding. Because the more you own, the more you will win.
Staking Polygon can bring you a lot of money. Staking Polygon has an average APY of 8%. More than 2.39 billion MATIC tokens have been staked in various staking providers according to Polygon. How and where can you stake Polygon? MATIC is very popular and can be found on many exchanges, including Coinbase/Coinbase PRO, Binance/Binance. the US. Huobi, FTX, and KuCoin.
What is Proof-of-Stake (PoS)?
Proof-of-Stake (PoS) is a mechanism that was developed after the Proof of Work (PoW) mechanism. It is also known as mining. Cryptocurrencies such as Ethereum and Bitcoin use PoW to secure their networks. This consensus mechanism is decentralized and requires powerful computers to operate. The network rewards those who contribute their computing power and receive cryptocurrency in return.
The Proof-of-Stake mechanism, on the other hand, requires only a few hundred thousand computers to work 24 hours a day. It is, therefore, more eco-friendly. PoS networks allow you to contribute to the network without selling or locking up your assets to earn staking rewards. Polygon is a Proof of-Stake blockchain. Your staked tokens protect the network.
What is the best way to stake MATIC?
Three steps are all it takes to stake MATIC:
Step 1: Purchase MATIC
First, you need to buy MATIC. MATIC can be purchased in both decentralized and centralized exchanges. MATIC can be purchased on Binance, Coinbase, Crypto.com, Kraken, KuCoin, and WazirX as well as other smaller exchanges. Uniswap and Sushiswap are some decentralized exchanges that allows you to buy MATIC.
Step 2: Submit MATIC to a validator/staking provider
Once you have purchased the MATIC amount that you want, it is time to transfer the funds to your wallet. The staking provider will determine which type of wallet you use. The exchange wallet is suitable for holding your MATIC on an exchange. You should not use an exchange wallet if your MATIC is to be staked in another staking provider like the ones mentioned above. Please ensure that the wallet you choose is supported by your staking provider before choosing a wallet.
Step 3: Take MATIC
Once you have created your wallet you are ready to stake your MATIC. Next, you will need to choose a staking service provider and connect your wallet to it. Node operators that store copies of the blockchain are called validators/staking providers. They verify movement on the blockchain to keep it secure. They can also vote on proposed changes to the blockchain network and help with governance. Simply connect your wallet and enter the MATIC amount you wish to stake. Then, execute the transaction. Spend some time investigating the staking provider. Make sure to check the link multiple times. Validators can lose tokens as a penalty for being dishonest, so it does matter which validator you choose.
Benefits of Staking Polygon, MATIC
Staking Polygon (MATIC), has many benefits:
- Passive income: You can generate passive income by Staking Polygon. This is an excellent way for you to make money without doing anything.
- Security: The stake of your coins secures the network and ensures transactions are processed efficiently and quickly.
- Participation in the community: Staking is a way to help support the Polygon (MATIC) community and encourage its growth.
What is the maximum APY for Polygon (MATIC)?
Polygon’s maximum APY (MATIC) is 8%. This means you can earn as much as 8% per annum on staked tokens. The exact percentage that you make will depend upon several factors.
- Network volume: The greater the number of people who stake Polygon (MATIC), the higher the rewards.
- Age of coins held in the wallet: The more old the coins are, the higher the rewards will be.
- The number of blocks generated: The greater the amount of blocks your wallet generates, the higher the rewards.
- Transaction fees: When you send coins, Polygon (MATIC) will charge transaction fees. If transaction fees were lower, rewards would be greater.
Staking can be a great way of earning rewards and supporting the Polygon (MATIC), network. It is better to take a long-term view and continue investing in the coin. You will earn continuous income by staking your tokens and building up your holdings over the long term.
How can I withdraw my reward?
Reward withdrawals are only possible after 2 MATIC have been credited. This amount cannot be withdrawn from the wallet until 2 MATIC have been credited. Reinvesting rewards are subject to the same rules. You cannot withdraw rewards if the amount is lower, but you can still stake the rewards at any time. Rewards will not be credited in this instance. Select an active validator from the Matic Wallet dashboard to withdraw rewards and then click on Withdraw Reward.
Final Thoughts
Polygon (MATIC), a secure, fast, and scalable blockchain platform, offers an APY maximum of 8%. Interested parties need only to delegate their tokens and validate them to be eligible. Then, they can claim their stake rewards regularly. You can also stake rewards to earn compound interest. The network conditions at the time of stake are a major factor in determining how much reward you get. You must have at least 1,000 MATIC tokens to start earning rewards. To earn rewards, these tokens will be locked in your wallet. The delegated tokens are not in the possession of validators. In the event that a validator is slashed, delegated tokens may also be cut. No minimum amount is required for delegation. Any amount, even 1 MATIC, will be accepted into the system. Validators can set a limit or not for accepting delegations. One of the best ways to make passive income is by staking Polygon $MATIC tokens.
