Staking remains one of the most popular ways to earn passively in the crypto market. Today, more projects are allowing investors to stake their tokens. THETA, a cryptocurrency created to improve video gaming, has also done the same. This blockchain has also been created to increase efficiency and avoid bottlenecks by sharing bandwidth between nodes in P2P networks.
There are two native tokens on the Theta network: Theta Fuel (TFUEL), which allows participants in the Theta network to get rewarded for sharing their computing power, and THETA, which is the governance and staking token.
This guide gives you step-by-step methods on how to stake TFUEL on the Theta network.
Today’s Theta Network price is $1.51 with a 24-hour trading volume of $62,062,885. Theta Network has been down 7.29% in the last 24 hours. The current CoinMarketCap ranking is #41, with a live market cap of $1,511,476,055. It has a circulating supply of 1,000,000,000 THETA coins and a max. supply of 1,000,000,000 THETA coins.
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What is THETA (TFUEL)?
THETA (TFUEL) is the operational token of the Theta network. Users can use the TFUEL token to complete transactions, such as paying a relay node to offer you a video stream or for deploying or interacting with smart contracts. Relay nodes earn THETA (TFUEL) for every video stream they relay to other users on the network.
THETA protocol introduced TFUEL, the second currency of the network, to separate users of staking/governance (THETA) and operations/transactions (with THETA TFUEL) and to enhance protocol security.
What is THETA Staking?
On the Theta network, staking is where you are incentivized to permit the processing power of your PC to function as a node. Before you can become a node in the Theta network, investors must lock some amount of their tokens.
Furthermore, THETA uses a multi-layer or multi-BFT PoS consensus mechanism. The PoS mechanism requires token holders to become a node and validate the data transfer in the network. On the Theta network, there is an initial layer that comprises 20-30 Enterprise Validator Nodes. These Enterprise Validator Nodes are controlled by bigger organizations, creating blocks in the Theta blockchain network.
The second layer comprises thousands of community-member Guardian Nodes. These Guardian Nodes are rewarded in TFUEL for accelerating the update and security of the blockchain. To stake tokens in the THETA network, you must be delegated to either a Guardian Node (THETA) or an Elite Edge Node (TFUEL). Knowing that both nodes play an important role within the THETA decentralized network is essential.
In the staking process, the tokens stay in your official THETA wallet. In addition, if the node switches off, the tokens remain in your wallet and will only be controlled by whoever has access to the wallet. Note: Never enter your 12-word seed phrase, or Keystore file and password, anywhere except the official THETA wallet.
How to stake TFUEL
To stake TFUEL on the Theta network, the minimum amount of TFUEL you need to have is 10,001 TFUEL tokens. The following step is how to stake Theta TFUEL to Elite Edge Node.
Step 1: You can either delegate to a Thetaboard Edge Node or Elite Edge Node. If you plan on running your own Elite Edge Node on your PC, visit http://www.thetatoken.org/ and download the Edge Node Software. You can also stake through the Theta mobile wallet.
If you plan on delegating to a Thetaboard Edge Node, please visit https://thetaboard.io/ and select:
- TFUEL page for staking between 10,000 TFUEL and 100,000 TFUEL or.
- TFUEL VIP page for staking greater than 100,000 TFUEL.
Step 2: Open another window in your browser and visit https://www.thetatoken.org/ and click on the wallet on the top.
Step 3: Go to your Theta wallet and unlock it with your preferred method.
Please ensure you disconnect your internet if you want to enter your 12-word phrase key. Then click ‘Unlock Wallet.’ Reconnect afterward. This is to safeguard your password from online hacks.
Step 4: Click on Stakes
Once that is done, you need to click on ‘Stakes’ to start staking on your TFUEL tokens.
Step 5: Click on Deposit Stake
Once that is done, you need to know that your staking purpose should be ‘Edge Node.’
Then click on Continue.
Step 6: If you are using Edge Node, open Edge Node and click on Stake TFUEL. You will need to deposit TFUEL. When you click on Stake TFUEL, you will see the Edge Node summary in letters and numbers. Highlight and copy the summary.
If you use the Thetaboard to stake, click on the TFUEL page. Then click on Summary, which has letters and numbers, and click on copy Summary
Step 7: Paste what you have copied (the Edge Node Summary).
Then enter the amount of TFUEL to stake. It is important to note that the minimum amount of TFUEL tokens you can stake is 10,000, and the maximum is 500,000 TFUEL tokens. Always leave at least 1TFUEL in your wallet for transaction fees.
Step 8: Once you have entered the amount to stake, click on Deposit Stake. Your wallet should notify you that you have successfully staked TFUEL tokens.
You can repeat the steps as required with other node summaries if you have more than 500,000 to stake.
How much can you earn with staking THETA?
As with all staking, how much you earn depends on how much you contribute.
Guardian Node and Elite Edge Node on the Theta network earn a proportion of TFUEL tokens generated annually. If you want to know how much TFUEL you will earn, depending on how much you stake, use the reward forecast calculator available on the Thetaboard Dashboard page to calculate your earnings. The page looks like this:
You need to note that the market value of your rewards depends on the relationship between the current price of TFUEL and THETA. Hence, this is something that you need to consider and monitor continually.
Benefits of TFUEL staking
#1: Innovation: The THETA ecosystem is an exciting project with many innovations. With this, the ecosystem has lots of potential.
#2: Strong development team: The team behind THETA is highly professional. Steve Chen, YouTube’s co-founder, is the advisor to THETA.
#3: Tokenomics: The limited supply of THETA coins and the fact that they can’t be earned quickly makes the project more attractive. This also will positively affect TFUEL.
#4: Developments and partnerships: The THETA ecosystem has many partnerships and developments. THETA’s strong partnership with Samsung VR has been a massive testament to the fact that THETA is credible.
Risks of TFUEL staking
#1: TFUEL inflation: There is a 5% annual increase in TFUEL, which might affect its price stability.
#2: Strong competition: They are many platforms in the streaming video niche. Big players dominate the niche, and THETA faces competition from such companies.
#3: Low liquidity: The initial coin offering drove assets to a small list of investors.
#4: Weak returns: There are low returns when you stake THETA TFUEL. There are crypto projects that offer higher returns than THETA.
#5: Redundancy: We don’t think a project that involves cutting video streaming bandwidth needs a cryptocurrency.
Is staking THETA safe?
Due to the reliance on the internet and smart contracts, no cryptocurrency is safe – but you can minimize the risks. Always back up your files and never reveal your private keys or wallet password to anyone. In addition, always encrypt your Theta wallet and keep a hard copy of your private keys in a safe place.
Conclusion
THETA ecosystem still has potential and use-cases which can affect its tokens THETA and TFUEL coin. It is possible to earn one or more TFUEL tokens daily in THETA. One downside of staking THETA cryptocurrency is that it may take up to 60 hours to unstake your tokens.
With enough investment, it is possible to make several thousands of dollars annually. If you want to earn passively from staking, then staking THETA (TFUEL)can be a good option. But it is not enough to rely on for the average staker due to the small returns.
Source: https://www.cryptopolitan.com/how-to-stake-tfuel/