Staking NEAR is a great way to earn passive income while contributing to the security of the Near Protocol network.
This guide will cover the steps to staking NEAR on a validator node (staking provider).
Staking on a validator node is one of the best ways to keep your cryptocurrency safe and under your own control compared to staking on crypto exchanges where you may not have full control over your cryptocurrency.
NEAR Protocol is a simple, scalable and secure blockchain platform designed to provide the best possible experience for developers and users. NEAR is designed to make it easier for traditional developers to create decentralized applications.
In this article you will learn everything about NEAR staking, namely:
What is NEAR staking?
How to choose a NEAR validator (staking provider)?
How to stake NEAR tokens?
What are the risks of staking NEAR tokens?
What is the tokenomics of NEAR?
What is NEAR staking?
NEAR staking is the process of storing and locking NEAR tokens for a certain period of time on the Near Protocol blockchain. The purpose of staking is to participate in the network's Proof-of-Stake consensus mechanism, help secure the network, and receive rewards.
Nominators (stakers) place their tokens in staking and receive a reward for this in the form of additional NEAR tokens. These rewards are distributed to validators in proportion to the amount of NEAR they have staked and the time they have been staking NEAR.
The minimum Near staking amount must be greater than the Near Protocol network commission cost.
There is no minimum NEAR amount for staking.
The minimum staking period is 30 days. However, it is worth noting that unlocking a staked NEAR usually takes up to 3-5 days (four eras).
The maximum staking duration is 365 days.
The minimum staking time for NEAR tokens is 30 days.
The reward rate for NEAR staking ranges from 7 to 13%, depending on the amount and period of NEAR staking.
How to choose a NEAR validator (staking provider)?
It is important for users to stake their NEAR tokens to a reliable and high-performing validator.
When choosing a validator (staking provider) for delegation (staking tokens), several factors must be taken into account:
Commission Rates: The commission rate charged by a validator is the percentage of your reward that the validator keeps for themselves.
Number of users: A large number of delegators may indicate a positive view of the validator.
Current Status: You can see whether the validator is currently active or not. There is no limited set of “active” validators on Near.
Performance: Make sure you choose a validator with the best performance possible.
Adding value to the ecosystem: Some providers offer additional services to their delegates such as tax reporting tools, reviewers, etc. This can be another great way to filter out validators who are thinking long term.
How to stake NEAR tokens?
For better security and control over your NEAR tokens, we recommend using the services of a decentralized staking provider. To delegate your tokens, you must stake them on the NEAR non-custodial validator node.
In this guide to NEAR staking, we will immediately consider the best NEAR staking provider and will completely exclude any projects that may carry the risk of losing funds or shortfall in profits, and we will definitely not consider centralized exchanges, because. they are not reliable.
Let's get started.
Step 1: Go to the website of the NEAR staking provider: xbanking.org
Step 2: Click on the “Launch App” button to go to the staking section.
Step 3: On the page that opens, find the NEAR staking pool below. Click on it to open the staking panel.
Step 4: First of all, you need to connect the wallet where your NEAR tokens are stored. Click on “Select Wallet” and connect the wallet in the window that opens. Supported wallets: XDEFI, WalletConnect (several wallets inside), Math Wallet, NEAR Wallet and MyNearWallet.
Step 4: Immediately after connecting the wallet (you will need to allow the wallet to connect to the site when connecting the wallet, it will prompt you for this action), the staking page will reload.
4.1 After rebooting, you need to find the NEAR staking pool on the page again and expand the staking panel.
4.2 Indicate the amount of NEAR you want to stake in the “Enter Token Amount” field.
4.3 Select the placement period in the “Placement period” field. The longer you choose to stake NEAR, the more staking rewards you will receive.
4.4 Click “Confirm staking” to place tokens for staking. The wallet will open, click complete the transaction.
Additionally:
What are the risks of staking NEAR tokens?
Risk of Slashing : There is currently no slashing on the NEAR network. There is no risk.
Unlocking period: The period for unlocking NEAR tokens from staking is 1-3 days. Cryptocurrency markets are highly volatile, and investors should be aware that they cannot sell their tokens immediately after staking them, as they will be locked into the network during staking.
NEAR tokenomics?
The total and maximum supply of NEAR tokens is 1,000,000,000 NEAR. Each year, a fixed emission of about 5% of the total supply is made, 90% of which is sent to validators in exchange for computing, storing and protecting transactions occurring on the network. All transaction fees charged by the network are forfeited. So the issuance of NEAR is actually ~5% minus transaction fees. This means that as network usage increases, output could become negative, resulting in negative inflation in the protocol.
The initial distribution of Near Protocol (NEAR) tokens is as follows:
17.20% is allocated for public grants, programs
14.00% allocated to main participants
12.00% allocated to community sale
11.76% allocated to early ecosystem
11.40% allocated for operating grants
10.00% allocated to a charitable foundation
15.23% allocated for seed round
8.41% allocated for venture round
Funding rounds:
On July 10, 2019, $12.1 million was raised during the ICO.
On May 4, 2020, $21.6 million was raised during the ICO.
On January 13, 2022, the funding round raised $150 million.
On April 6, 2022, $350 million was raised in a venture round.
Happy staking NEAR! ❤️