Edgeware Staking Overview
Edgeware (EDG) is a Substrate-based smart contract platform that is cooperatively owned by its community and has a liquid democracy governance system. It uses the EDG token to incentivize and reward participants and has a public treasury for funding decentralized projects. Staking EDG involves locking up tokens and nominating or running validators to secure and verify blocks. Edgeware uses Nominated Proof-of-Stake (NPoS), where anyone can nominate up to 16 validators with a single-click operation inside the wallet. Validators and nominators can earn EDG rewards.
If you’re keen on staking Edgeware, take a look at this staking manual guide and learn how to stake edgeware to gain insight into the procedure.
How to Stake Edgeware (EDG)
To stake Edgeware (EDG), you need to have two accounts: A stash account and a controller account. The stash account is where you keep your funds in cold storage, and the controller account is where you manage your staking actions. Here is a brief step-by-step instruction on how to stake Edgeware (EDG) on ‘Polkadot UI’:
Step 1 – Connect to Edgeware using Polkadot UI
Step 2 – Create/import an account to Polkadot UI
Step 3 – Stake EDG tokens by nominating validators
Step 4 – Choose the validators you want to nominate
Step 5 – Sign and submit the transaction
Step 1 - Connect to Edgeware using Polkadot UI
Polkadot UI is a web interface that allows you to interact with Edgeware and other Substrate-based blockchains. To connect to Edgeware, go to Polkadot/Substrate portal and select “Edgeware” from the dropdown menu in the top left corner. Then click on “Save & Reload” in the bottom right corner.
Step 2 - Create/import an account to Polkadot UI
To stake EDG tokens, you must have an account on Polkadot UI. You can create a new account by clicking on “Accounts” and then following the instructions to set up a new key pair and password. Alternatively, you can import an existing account by clicking on “Accounts” and “+ Restore JSON,” then selecting the JSON file containing your account information and entering your password.
Step 3 - Stake EDG tokens by nominating validators
The next step is to nominate validators you can trust to secure the network. Go to “Network” and “Staking” on Polkadot UI, and then click “Account actions” and “+Nominator”. Choose your stash and controller accounts, the amount of EDG you want to bond, and the payment destination for your staking rewards.
Step 4 - Choose the validators you want to nominate
Choose the validators you want to nominate by selecting them from a list that can be filtered by various criteria. Nominate more than one validator in case some become inactive or slashed. Click on their name to add or remove them from your selection, then click on “Bond & Nominate” when you’re done.
Step 5 - Sign and submit the transaction
The last step is to confirm the transaction with your controller account password. Click on “Sign and Submit” and wait for the notification that tells you your transaction is done.
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Best Places to Stake Edgeware (EDG)
Several alternatives are accessible for staking EDG, and each has its own set of advantages and disadvantages. Below are some platforms where you can stake your EDG:
Option 1: Polkadot UI
Polkadot UI is a platform for managing and interacting with Polkadot-based networks, including Edgeware. Staking Edgeware (EDG) on Polkadot UI involves locking up your EDG tokens and nominating validators to earn rewards and participate in network governance.
- Direct interaction with the Edgeware network and other Substrate-based chains via the official web interface.
- Ability to choose up to 16 validators from a list of active or waiting validators, with the ability to filter or search them by name or address.
- Option to set payment destination and view staking status and rewards.
- Participation in other network activities, such as governance and transactions.
- Requires installation of a Polkadot extension on your browser.
- Manual claiming of rewards within 21 days or else they will be lost.
- Creation of two accounts for staking: a stash account and a controller account.
- Transfer of EDG tokens from your stash account to your controller account for transaction fees.
- Risk of being slashed if nominated validators misbehave or go offline.
Option 2: Staking Rewards
Staking Rewards is a website that helps you stake Staking Edgeware (EDG) tokens on other platforms or services. You need a wallet that supports staking, such as Polkadot UI or Figment, to hold your EDG tokens. Then, you can use Staking Rewards to compare different validators and calculate your potential rewards. However, you cannot stake your EDG tokens on Staking Rewards itself, but you need to use another platform or service to do so.
- Access to information and tools for staking EDG on various platforms or services.
- Ability to calculate potential earnings based on different scenarios and network conditions.
- View individual reward rates, fees, risk, and complexity levels of validators.
- Cannot directly stake EDG tokens on the Staking Rewards platform.
- May not receive the most up-to-date or accurate information on validators or network conditions.
- May not have access to features or tools offered by other platforms, such as monitoring, governance, or customer support.
Option 3: Figment
Binance is a popular cryptocurrency exchange that offers various trading and staking services for different tokens, including API3. Staking API3 on the Binance platform is a way of earning passive income by locking your API3 tokens on the exchange and receiving rewards based on the staking duration and amount. Binance offers flexible and locked savings products for staking API3 tokens, with a claimed APY of 1.77%.
- EDG tokens can be delegated to one or more of Figment’s validators, who are experienced and trusted in the industry.
- Users can benefit from Figment’s features, such as Hubble, a web interface that allows for monitoring staking performance and rewards, as well as participation in governance activities.
- Access to educational resources and customer support is available through the Figment platform.
- Figment’s services have a fee, which may reduce the net rewards earned from staking EDG tokens.
- Another platform such as Polkadot UI must be used to nominate Figment’s validators and stake EDG tokens.
- Two accounts must be created for staking: a stash account and a controller account.
- Some EDG tokens must be transferred from the stash account to the controller account to pay transaction fees.
- Rewards must be manually claimed within 21 days, or they will be lost.
- The staking rewards may be impacted by the risk of slashing if Figment’s validators misbehave or go offline.
Benefits of Staking Edgeware (EDG)
- By staking EDG tokens, individuals can actively participate in the security and governance of the Edgeware network.
- Stakers are rewarded for their contributions in the form of newly minted EDG tokens, which are distributed pro-rata among all stakers after the validator payment is deducted.
- EDG stakers can nominate up to 16 validators using their tokens, providing them with a say in the network’s decision-making process.
- By staking EDG tokens, asset dilution over time can be avoided as the EDG supply increases with every block, providing a hedge against inflation.
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Frequently Asked Questions
What is staking Edgeware (EDG)?
Staking Edgeware (EDG) involves locking up your EDG tokens and nominating validators to secure the network and earn rewards. Edgeware uses Nominated Proof-of-Stake (NPoS), which has validators and nominators. Validators produce blocks, validate transactions, and receive rewards in the form of EDG tokens, but also face the risk of slashing. Nominators delegate their tokens to trusted validators and share in their rewards and risks. Staking EDG allows participation in the security and governance of the high-performance Edgeware network and helps avoid asset dilution over time.
How much can I earn by staking Edgeware (EDG)?
The amount you can earn by staking Edgeware (EDG) depends on various factors such as the amount and duration of tokens you stake, the staking type, reward rates and fees of validators, total staked tokens, inflation rate, and network performance. The current estimated reward rate for Edgeware is around 17%, but it may vary over time depending on the network conditions and validator behaviour. You can use platforms such as Staking Rewards or Coinbase to calculate your potential earnings based on different scenarios and assumptions.
What are the risks of staking Edgeware (EDG)?
Staking Edgeware (EDG) comes with certain risks, such as the need to lock up your EDG tokens for a period of 14 days, which means you cannot trade or transfer them during that time. There is also a risk of slashing if the validators you nominate misbehave or go offline, and you may not receive the expected rewards if the network conditions or the validators’ performance change over time. Moreover, if you do not claim your rewards within 21 days, you may lose some of them.
How can I unstake or withdraw my Edgeware (EDG)?
To unstake or withdraw your Edgeware (EDG), you need to use the same platform or service that you used to stake your tokens. You then need to switch to your stash account and click on the unbond button to enter the amount of EDG tokens you want to withdraw. After waiting for the 14-day unbonding period to complete, you need to switch to your controller account and click on the withdraw button to sign and submit the transaction to complete the withdrawal. Finally, you will receive your unbonded EDG tokens in your stash account balance.