Dusk Network (DUSK) Staking Overview
Dusk Network (DUSK) is a privacy-focused blockchain for financial applications that uses zero-knowledge proofs and a unique consensus algorithm. Staking DUSK allows users to participate in the network’s consensus algorithm and earn rewards. Block Generators propose new blocks and validate transactions by staking DUSK tokens, while Provisioners vote on the validity of blocks by locking up DUSK tokens. Staking is currently in the ERC-20 stage, with a transition to the native network for full decentralisation and access to its privacy features and smart contract capabilities.
If you are interested in staking Dusk Network, check out this guide for step-by-step instructions on how to get started and gain a better understanding of the process.
How to Stake Dusk Network (DUSK)
There are different ways to stake DUSK tokens depending on whether you want to be a Block Generator or a Provisioner. ERC-20 Block Generator staking is a way of staking DUSK tokens on the Ethereum network before the public launch of the native network. This option is suitable for users who want to support the network and earn rewards without running their own nodes.
To stake DUSK tokens as an ERC-20 Block Generator, follow these steps:
Step 1 - Connect Your Wallet
Visit the official website of Dusk Network staking and connect your preferred wallet, such as MetaMask or Ledger.
Step 2 - Choose Your Bid Amount
Select “Block Generator” and use the slider to choose the number of DUSK tokens you want to stake. The minimum bid is 10,000 DUSK, and the maximum is 100,000 DUSK.
Step 3 - Confirm and Pay the Gas Fee
Review your bid details and click “Confirm.” Then, sign the transaction with your wallet and pay the gas fee.
Step 4 - Wait for the Staking Period to End and Claim Your Rewards
Check your staking status on the official website of Dusk Network staking and wait until the end of the current epoch to receive rewards. Claim rewards by clicking “Claim Rewards” and withdraw your bid by clicking “Withdraw Bid.” Be cautious when withdrawing your bid before the end of an epoch, as you will lose all your rewards for that epoch.
Provisioners are nodes that vote on the validity of blocks proposed by Block Generators. They need to lock up a fixed amount of DUSK tokens (called a stake) for a certain period of time to join the network and earn fixed rewards for their votes.
To stake DUSK tokens as an ERC-20 Provisioner, follow these steps:
Step 1 - Connect Your Wallet
To connect your wallet that contains DUSK tokens to the staking platform, go to the official website of Dusk Network and click on “Connect Wallet.” From there, select the wallet that holds your DUSK tokens and follow the instructions provided to connect it to the website.
Step 2 - Choose the Number of DUSK Tokens to Stake
After connecting your wallet to the staking platform, navigate to the “Provisioner” section and use the provided slider to select the amount of DUSK tokens you wish to stake. The minimum stake allowed is 10,000 DUSK, while the maximum is 100,000 DUSK.
Step 3 - Confirm and pay the Gas Fee
Once you have selected the amount of DUSK tokens you wish to stake, click on “Stake Now” and review the details of your stake. If everything looks correct, click on “Confirm” to sign the transaction using your wallet. Please note that the gas fee required for this transaction may vary depending on the level of network congestion.
Step 4 - Wait for the Staking Period to End and Claim Your Rewards
Upon confirmation of your transaction, a confirmation email containing your staking details will be sent. Once the staking period has ended, claim your rewards, which will be added automatically to your rewards balance. You can claim your rewards at any time by signing a transaction using your wallet.
Also read: How to Buy Buff Doge Coin
Popular video guides on staking Dusk Network (DUSK)
Best Places to Stake Dusk Network (DUSK)
1. Binance
Binance is a well-known cryptocurrency exchange that offers over 350 cryptocurrencies for trading, buying, and selling, as well as various services and features for crypto users. Staking Dusk Network (DUSK) on Binance can earn you passive income from idle tokens with flexible savings.
Pros
- Earn a passive income from idle tokens with an APY of 1.85%.
- Stake DUSK with no lock-up period and withdraw funds at any time.
- Stake DUSK with a minimum of 0.01 DUSK and pay only a 0.1% transaction fee.
- Benefit from the security and liquidity of Binance, one of the world’s largest and most popular cryptocurrency exchanges.
- Access various services and features on Binance, such as Binance Earn, Binance NFT, Binance Pay, and more.
Cons
- Trust in Binance’s security measures and reward payout policies are required.
- Compliance with Binance’s identity verification and regulatory requirements is necessary.
- Exposure to market volatility and DUSK price fluctuations is a risk.
- Potential network congestion or technical issues on Binance can be a challenge.
2. Atomic Wallet
Atomic Wallet is a multi-currency wallet that supports Polkadex staking with one click. You need to download and install the Atomic Wallet app, deposit your PDEX tokens, and choose a validator to delegate your tokens. You will earn rewards automatically to your staking address and can also get extra rewards with 1% cashback for cryptocurrency exchange and purchase.
Pros
- Staking PDEX on Atomic Wallet is hassle-free and requires no technical knowledge.
- Atomic Wallet supports multiple cryptocurrencies, allowing you to manage all your assets in one place.
- You can earn extra rewards with 1% cashback for cryptocurrency exchanges and purchases.
- You have the flexibility to unstake your PDEX tokens at any time, without waiting for any period.
Cons
- There are limited options for choosing validators and the user cannot change them after staking.
- The user has limited control over their staking preferences and operations.
- The user has to download and install the Atomic Wallet app on their system, which may not be suitable for some users who prefer web-based or mobile wallets.
3. Ankr
Ankr is a Web3 infrastructure platform that offers blockchain APIs, node hosting, and staking solutions to promote the accessibility and affordability of web3 for everyone. Staking Dusk Network (DUSK) on Ankr is a secure and hassle-free way to earn passive income.
Pros
- Deploying a Dusk Node on Ankr is quick and easy with just one click and a few minutes.
- Staking DUSK on Ankr requires a minimum of 10,000 DUSK and only costs $9.99 per month for node hosting.
- Ankr’s cloud infrastructure and network optimisation provide reliable and scalable performance.
- Staking DUSK on Ankr allows for full control of funds with your own private keys and the ability to withdraw at any time.
Cons
- A large amount of 100,000 DUSK is required to become eligible for Block Generator staking, which may be unaffordable for some users.
- Technical knowledge is required to enter into the pre-staking contract via MetaMask, and it may incur gas fees.
- There may be competition from other stakers due to Ankr’s support for over 40 blockchain protocols.
- Using a third-party service like Ankr may pose some security risks, such as hacking or losing access to accounts or funds.
Also read: Staking Dusk Network (DUSK) Price Prediction
Benefits of Staking Dusk Network (DUSK)
By staking DUSK, you contribute to the decentralisation and security of the network. The network relies on stakers to power the Secure Block Approval (SBA) mechanism and validate transactions.
You can earn rewards for running a node and supporting the network. The rewards depend on the node type and the network activity. Provisioners can earn a fixed 12% APY return, making staking a profitable option.
Dusk Network offers privacy and compliance features that are essential for financial applications. The network uses zero-knowledge cryptography and smart contracts to enable confidential and regulated transactions.
By staking DUSK, you can access the features and services provided by the network, including deploying and running decentralised applications (dApps), issuing and trading security tokens, and using the XSC 2.0 standard. This can help you take advantage of the opportunities offered by the blockchain ecosystem.
More Cryptos similar to Dusk Network (DUSK)
Frequently Asked Questions
How much can I earn by staking Dusk Network (DUSK)?
The amount you can earn by staking Dusk Network (DUSK) varies depending on the type of node you run and the network activity. Block Generators are eligible to earn a share from a fixed annualised reward pool of 3,000,000 DUSK, while Provisioners can earn a fixed 12% APY. The rewards are distributed proportionally to the amount of DUSK staked by each node and the number of participants in the network. You can use a staking calculator to estimate your potential earnings based on different scenarios. For example, if you stake 100,000 DUSK as a Block Generator for one year, you can expect to earn around 667 DUSK, which is equivalent to about $120 at the current price of $0.1798 per DUSK
What are the risks of staking Dusk Network (DUSK)?
The risks of staking Dusk Network (DUSK) include gas fees, lock-up periods, security breaches, and market volatility. Gas fees may vary depending on network congestion, and staking requires locking up your tokens for a certain period, which affects liquidity. Using third-party services like Atomic Wallet or Ankr may expose you to security risks. Staking rewards are not guaranteed and depend on network activity and competition from other stakers.
How can I unstake or withdraw my Dusk Network (DUSK)?
To unstake or withdraw your Dusk Network (DUSK) tokens, you must access the staking dashboard on the official website and connect your MetaMask wallet. Once connected, click on the “Unstake” button and confirm the transaction on MetaMask. However, you will need to wait for the lock-up period to expire, which can vary depending on the node type and network conditions. You can check the status of your unstaking on the dashboard. After the lock-up period has ended, click on the “Withdraw” button, confirm the transaction on MetaMask, and you will receive your DUSK tokens back to your ERC-20 address, except for the gas fees.
Does Dusk Network (DUSK) utilize a Proof-of-Stake (PoS) consensus mechanism?
Dusk Network (DUSK) is a Proof-of-Stake (PoS) blockchain secured by the DUSK token. It operates on a public and open network, enabling anyone to participate in its consensus mechanism. Validators secure the network by staking DUSK tokens and validating transactions, earning rewards in return. The PoS mechanism enhances efficiency, security, and decentralization in the Dusk Network ecosystem.
