Staking is the process to secure the network on Proof of Stake (PoS) blockchains. Unlike conventional Proof of Work (PoW) models, token owners can stake their acquired native tokens and earn a percentage yield as rewards. Simply put, staking facilitates validating a transaction or adding another block to the network. For blockchain start-ups leveraging the PoS blockchain networks, it helps them incentivize investors by allowing them staking opportunities.
Why Staking And How Ferrum Network Can Help
What drives investor sentiments in favour of a project is its ability to provide a practical utility and motivation. While tokenisation is becoming increasingly popular amongst start-ups as an advanced method to raise funds for their ideas, the problem is the tokens in many different business models do not provide a direct utility to investors. By integrating Staking, blockchain start-ups can create practical utility and incentivize token holders. Typically, when investors stake their acquired native tokens. they earn a fixed percentage yield commonly known as APY (Annual Percentage Yield). It allows them to grow their crypto wealth as the token use increases when the project gains popularity. By integrating Staking, blockchain start-ups that don’t have a direct utility for their tokens can also attract investors by allowing them to tap into the world of DeFi and earn guaranteed rewards in perpetuity.
Ferrum Network provides end-to-end enterprise-level staking solutions to Blockchain start-ups and helps them seamlessly integrate Staking. Staking requires specialist attention, and creating a seamless setup is quintessential for automated rewards distribution. Also, with Ferrum’s specialized services, blockchain start-ups can offer more flexible opportunities to their investors.
Let’s take a quick look at why Blockchain start-ups must consider integrating the Staking feature:
- Investor Motivation: Investors put in their funds to grow their crypto wealth. Staking allows them to earn fixed rewards, and they can start growing their crypto wealth from day one and as long as they continue to hold their acquired tokens. Introducing Staking allows projects to gain more investors, and Ferrum Network makes it easy for start-ups to accomplish that.
- Token Utility: Many DeFi projects that start enthusiastically fail when their newly minted coins are listed on a Decentralized Exchange (Dex). Most investors simply dump the tokens as they provide no real-world practical utility to investors. With Staking, investors will earn fixed rewards as long as they continue to hold the tokens. And in some cases, the model could be designed in a way that these rewards continue to grow in perpetuity as the transactions on the network grow. Therefore, it demotivates investors from dumping the tokens when listed.
- Market Acquisition: Without a practical utility for investors, the tokens will have limited growth. Organic investors who would hold the tokens for a longer period to support the project’s initiatives will look for real utility. With staking, blockchain start-ups can attract organic token users, which in turn helps them expand and acquire greater market size.
- Liquidity Crisis: A liquidity crisis can kill a project. Community members and stakeholders always prefer tokens with enhanced liquidity. Also, investors feel confident about a project if there is sufficient liquidity to facilitate seamless trading. With Staking, start-ups can ensure optimum liquidity to gain the confidence of their community members, stakeholders, and potential investors.
Understanding Barriers To Staking
Blockchain technology is evolving and integrating Staking can be challenging. It requires professional and experienced experts to design and integrate Staking to make sure everything is automated and works efficiently. Mostly Staking has been limited to bigger projects with deep pockets. Ferrum Network offers cost-effective professional solutions and support to help even mid-cap start-ups integrate offer Staking to their existing and potential investors.
Bigger projects have their main net, and that’s where they provide investors/token holders with the opportunity to stake their acquired native tokens. For smaller projects, the options are limited. There is also a dearth of dedicated Staking services solutions in the market, and the challenges are pertinent. Amongst the few that one may come across, the solutions available are not that great, and above all, incompatible with all kinds of tokenomics models.
Ferrum Network’s Staking Services Types And Benefits
No doubt, integrating staking as a feature in your on-chain model has many different advantages, and it can take your start-up project to another level. Not to mention that it will also accentuate and make your fundraising efforts more effective as it will create a very practical utility for existing and potential investors. Ferrum Network undertakes the entire responsibility of integrating Staking features to your tokenomics model and ensures guaranteed successful integration. It also offers customization depending on the specifics of your project. Let’s take a look at Ferrum Network’s Staking as a Service offering:
– Traditional Staking
Ferrum helps with the seamless integration of traditional staking. Traditional staking allows token holders to lock their tokens for a specific period to generate fixed rewards. Any investor can purchase several native tokens and stake them on the blockchain network. This helps to validate transactions on the blockchain, and in return, they get to earn guaranteed rewards. These rewards are automatically distributed at the end of the staking period, and investors can choose to withdraw or reinvest the reward tokens and stake them on the network. Effectively, traditional staking creates instant utility for your new tokens and provides investors with a unique opportunity to earn guaranteed rewards. While blockchain projects get the necessary liquidity, investors earn rewards, thus, creating a win-win for both.
– Liquidity Staking
Ferrum Network can also help your project integrate a liquidity staking model to provide greater impetus and motivation to token owners. By integrating Liquidity Staking features, blockchain start-ups can allow token holders the opportunity to provide liquidity to dedicated Liquidity pools. By becoming a liquidity provider (LP), token holders can earn rewards by providing liquidity to various liquidity pools. Typically, liquidity providers can earn additional lucrative rewards. Moreover, by integrating liquidity staking features, users can earn rewards in a secondary token which is different from the staked tokens. Ferrum Network helps in the successful integration and implementation of this feature.
– VIP Staking
When it comes to providing select investors with the opportunity to become a liquidity provider and participate in a staking pool, the VIP staking feature allows projects to select investors based on a number of factors. It also helps projects to allow early investment opportunities and benefits to select investors. Typically, with VIP Staking feature projects can create a whitelist wherein they can add investors based on many different factors such as:
Token holdings: Projects can encourage users to hold more tokens by allowing those holding more tokens exclusive access to staking opportunities. Users with a certain number of tokens can get whitelisted and become a liquidity provider in dedicated staking pools.
Randomly selected lottery rewards: Projects can introduce exciting lottery rewards for select token owners by allowing the few chosen ones to get access to liquidity staking pools.
Pre-Sale/IDO Participants: To reward early investors, projects can allow whitelisting of Pre-sale/IDO participants and provide them with an exclusive opportunity to earn additional rewards by investing in staking pools.
Holding/rewarding in a particular NFT: With whitelisting, projects can also mint a specific NFT token and reward users. NFTs are getting extremely popular, and they provide an immutable certificate of authentications.
Usage of their dApp: The whitelist will also help create a list of users who can use a project’s dApp. It can be used to provide early access. And based on the dApp usage, projects can allow investors to be a part of a liquidity staking pool. If done strategically, it can help with client acquisition for dApps.
Engagement with their social networks/community: Based on community engagement, investors can get whitelisted and benefit from the opportunity to stake tokens.
VIP Staking helps in making the process more interesting and customized to reward a particular group of investors by allowing them early access to exclusive access to staking pools. For example, the whitelist can include members who demonstrate a certain level of interaction in community groups promoting the project. It will motivate community members to be active and participate in community groups.
Depending on the tokenomics and the project design, integrating the staking feature may require multi-token support. Ferrum Network enables and helps blockchain projects with their model and helps them integrate multi-tokens which makes staking seamless. Often for staking pools, projects reward users in a different token apart from the governance token.
Liquidity is one of the most important aspects that many projects often overlook while integrating the staking feature. Ferrum Network helps blockchain start-ups tokenize and create a model that ensures optimum liquidity throughout. While introducing implemented.
Ferrum Network Staking As A Service Advantages
Ferrum Network’s Staking services come with multiple advantages and benefits. One of the most important aspects of successfully integrating and implementing staking features to your tokenomics model is to make sure it is done by experts who have a proven track record. Any discrepancy can simply shatter your investor confidence and bring additional liabilities. Here are a few projects that should consider Ferrum Network if they are looking to integrate staking services:
- End-to-end Support: Ferrum’s experts provide end-to-end support, which means they help with both conceptualisation and implementation. It includes helping with tokenomics design and technical support to integrate and implement staking features. Moreover, they also help in community building and documentation related to staking.
- Fund-raising solutions: While integrating Staking allows a project to create immediate utility for the tokens to attract investors; the Ferrum network also supports practical fund-raising. It helps projects connect to investor communities and pitch them the custom staking opportunities and token utilities. Ferrum Network also provides users with tailored fund-raising solutions to help them bring their ideas to life.
- Enhanced Reach: Getting the word out in the community and creating the initial buzz can be challenging. Ferrum network not only helps create instant utility for your tokens but also pushes them on relevant platforms to attract potential investors and users.
– Flexible Options: Ferrum Network can help with flexible options. and the services are highly cost-effective. As a blockchain start-up, you can offer traditional staking and create liquidity pools to reward investors for providing liquidity.
– Proven Track Record: Ferrum Network has been helping businesses with their Staking feature integration and has helped many different projects successfully raise liquidity by allowing investors to stake their acquired tokens.
Staking has become increasingly popular amongst crypto investors. Many different projects are now actively pitching staking opportunities to potential investors to raise liquidity. However, for mid-cap and blockchain start-ups that don’t have a lavish budget, integrating custom staking features into their tokenomics model can be challenging and out of budget. Ferrum Network offers top of the line staking integration services to blockchain start-ups and allows them to create instant utility for their acquired tokens. It helps them with creating relevant smart contracts and sees through the entire deployment and implementation processes. Ferrum Network also has a proven track record of helping a long list of blockchain start-ups integrate Staking feature rewards for investors. The company is dedicated to helping blockchain start-ups excel and get their ideas on the ground. Integrating staking and creating utility for your newly created tokens can be a breeze. If you’re a blockchain start-up and struggling with integrating staking features or creating a practical utility for your token, Ferrum Network can help.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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