Staking Elastos (ELA) is your chance to actively participate in a revolutionary blockchain-powered internet. Elastos, launched in 2017, combines cutting-edge technology and years of vision to build a decentralised SmartWeb. Its standout feature is BeL2, a Bitcoin Layer 2 solution, which transforms Bitcoin into a scalable and efficient network capable of supporting smart contracts and unlocking the liquidity of staked Bitcoin assets.
Dubbed the “BTC Queen,” Elastos is fortified by over 50% of Bitcoin’s hash power, ensuring unmatched security and credibility. Its unique approach separates application functionality between a main chain and individual side chains, delivering flexibility for developers and scalability for users.
Staking ELA allows you to support this innovative ecosystem while earning rewards. Let’s explore how you can stake Elastos and be a part of this next-generation blockchain revolution.
How To Stake Elastos (ELA)?
Staking Elastos (ELA) is an excellent way to earn passive income while supporting the network’s security and decentralisation. The process involves a Bonded Proof of Stake (BPoS) mechanism, where you lock your tokens to vote for validators. Let’s dive into the step-by-step process to stake your coins using the Essentials Wallet.
Step 1: Download The Essentials Wallet
The first step in staking Elastos is to download the Essentials Wallet, the official wallet for ELA staking. This wallet is available for both iOS and Android devices.Visit your device’s app store and search for Essentials Wallet by Elastos Foundation. Once downloaded, create a wallet or import an existing one if you already have ELA tokens. Ensure your wallet is secure by storing your private keys and recovery phrases safely.
Step 2: Acquire ELA Tokens
To stake ELA, you need to purchase some ELA tokens from popular cryptocurrency exchanges.
You can buy ELA from exchanges like KuCoin, Huobi, Gate.io, and Coinbase. However, note that the ELA tokens on Coinbase are ERC-20 tokens, meaning they exist on the Ethereum network. To stake ELA, you’ll need mainchain ELA, so transfer your ERC-20 ELA to your Essentials Wallet and convert it to the native Elastos mainchain version.
Step 3: Transfer ELA To Your Essentials Wallet
Once you’ve acquired ELA tokens, transfer them to your Essentials Wallet to begin staking.
Here’s how to transfer ELA:
- Go to the exchange where you purchased your ELA.
- Select the Withdraw option and enter your Essentials Wallet address.
- Confirm the transaction and wait for the tokens to appear in your wallet.
Make sure you have mainchain ELA in your wallet, as only the native tokens can be staked.
Step 4: Stake Your ELA Tokens
Once your ELA tokens are in the Essentials Wallet, it’s time to stake them. Follow the steps below to stake your tokens:
- Open the Essentials Wallet and log in.
- Swipe through the home page until you see the staking section.
- Select the amount of ELA you want to stake. You can choose a staking period between 10 to 1000 days (or 7,200 to 720,000 block heights).
- Confirm your staking transaction to lock your tokens.
By staking your ELA tokens, you’re locking them to support network operations while earning rewards in return.
Step 5: Vote For Validators
After staking, you need to vote for validators to secure your rewards. Validators are nodes that process transactions and secure the network.
Here’s how to vote for validators:
- Convert your staked ELA tokens into equity tokens within the Essentials Wallet.
- Use your equity tokens to vote for your preferred validators.
- Choose validators based on their performance and reliability to maximise your staking rewards.
Step 6: Claim Your Staking Rewards
Staking rewards are automatically distributed through the blockchain. The reward split is as follows:
- 75% of rewards go to stakers.
- 25% of rewards go to the validators.
You don’t need to manually claim your rewards, as they are credited to your wallet automatically. However, once your staking period ends, you’ll need to re-vote to continue earning rewards.
Note: The staking period you choose is crucial. If your staking period ends, you’ll stop earning rewards until you re-stake your tokens and vote for validators again. Make sure to revisit your Essentials Wallet periodically to check your staking status.
Popular Video Guides On Staking Elastos (ELA)
Best Places To Stake Elastos (ELA)
Essentials Wallet is the official Elastos wallet that enables users to manage their digital assets securely. It supports staking for tokens like ELA, allowing participation in the Bonded Proof of Stake (BPoS) mechanism. This feature empowers users to earn rewards by contributing to network security and consensus. The wallet offers an intuitive interface, making it accessible for both novice and experienced users. Additionally, Essentials Wallet integrates with various decentralised applications (dApps), providing a comprehensive ecosystem for managing and utilising digital assets within the Elastos network.
Pros:
- Supports staking for ELA tokens, enabling users to earn rewards.
- User-friendly interface suitable for all experience levels.
- Integration with multiple dApps enhances functionality.
- Contributes to network security through BPoS participation.
- Regular updates ensure compatibility with the latest network features.
Cons:
- Limited to the Elastos ecosystem; does not support other blockchains.
- Staking rewards may vary based on network performance.
- Requires understanding of BPoS mechanics for optimal use.
Elephant Wallet is a comprehensive digital asset management platform that enables users to manage and stake Elastos (ELA) tokens, along with other cryptocurrencies like Bitcoin and Ethereum. It offers features such as the Elastos Decentralised Identifier (DID), empowering users with control over their digital identities and data. The wallet's user-friendly interface simplifies the staking process, allowing users to participate in Elastos' Bonded Proof of Stake (BPoS) consensus mechanism to earn rewards. Additionally, Elephant Wallet supports cross-chain transactions, enhancing its versatility in the crypto ecosystem.
Pros:
- Supports staking of ELA tokens, enabling users to earn rewards.
- Manages multiple cryptocurrencies, including Bitcoin.
- Offers robust security measures to protect digital assets.
- Available on multiple platforms, including Android and iOS.
Cons:
- Lacks advanced trading features for active traders.
- Customer support options are not clearly outlined.
Benefits Of Staking Elastos (ELA)
Staking Elastos (ELA) presents an excellent opportunity to earn passive rewards while playing a vital role in strengthening the network. By staking your ELA tokens, you actively contribute to the security and governance of the Elastos blockchain while enjoying various benefits. Let’s explore these benefits in detail to understand why staking ELA is a valuable investment strategy.
Earn Rewards And Boost Your Investment
One of the most significant advantages of staking Elastos is the opportunity to earn regular rewards in the form of additional ELA tokens. The current annual reward rate is around 2.81%, which allows your investment to grow steadily over time. The longer you stake, the more you earn, making staking an attractive option for long-term investors.
Unlike traditional investments, staking does not require constant market monitoring. You simply lock in your ELA tokens, and the network rewards you for your contribution. This makes staking a low-effort way to earn passive income while holding your tokens.
Strengthen The Network’s Security
Staking ELA is more than just earning rewards — it helps secure the Elastos network. When you stake your tokens, you contribute to the processing and validation of transactions, ensuring the blockchain operates efficiently and remains decentralised.
By staking, you also reduce the risk of attacks on the network, making it more secure for all users. This participation directly strengthens the ecosystem and ensures Elastos remains a trusted blockchain solution.
Participate IN Governance And Shape The Future
Staking ELA gives you access to the Cyber Republic DAO (Decentralised Autonomous Organisation). This means you can vote on important decisions affecting the Elastos ecosystem, such as updates, proposals, and community initiatives.
Your voice matters, and your staked tokens grant you the right to influence the project’s future direction. This governance feature ensures that Elastos remains a community-driven network, with stakers playing an active role in its development.
Enjoy Environmentally Friendly Staking
Elastos leverages Bitcoin’s Proof of Work (PoW) security mechanism without consuming additional energy. This unique approach makes staking ELA an environmentally friendly option compared to traditional PoW blockchains.
You contribute to the network’s security without increasing your carbon footprint, making it a sustainable choice for eco-conscious investors.
Flexible Staking Options To Suit Your Needs
Elastos offers flexible staking durations, allowing you to choose a period that suits your financial goals. You can stake your tokens for as short as 10 days or as long as 1,000 days.
Longer staking durations come with higher reward rates, so if you plan to hold your ELA for an extended period, staking is a great way to maximise your returns. However, if you prefer shorter-term commitments, you still benefit from staking rewards.
Frequently Asked Questions
What Is The Minimum And Maximum Time Required To Stake ELA In BPoS?
You must pledge your ELA for at least 10 days (7,200 block heights) and up to a maximum of 1,000 days (720,000 block heights). Once you’ve chosen a pledge duration, it cannot be shortened but can be extended. However, the extended time cannot exceed the expected expiration of the node you’re staking with.
How Are Rewards Distributed For Staking Elastos (ELA)?
Staking rewards in Elastos are automatically divided between nodes and stakers. The allocation is 25% to nodes and 75% to stakers, depending on the amount of ELA you pledge and the length of your pledge time. The longer and larger your stake, the higher your potential rewards. Remember, you must re-vote after your pledge time ends to keep earning rewards.
How Do Equity Tokens Work In Elastos Staking?
When you stake one ELA in the Elastos BPoS system, it is converted into one equity token. These equity tokens are used for voting on nodes, which helps secure the network. Note that you cannot vote for the 12 CR Council nodes, but your equity tokens will be valid for all other eligible nodes within the system.
What Happens When My Pledge Time Ends In Elastos Staking?
Once your pledge time ends, you must re-vote to continue earning rewards. Without re-voting, your staked ELA will no longer contribute to the network, and you’ll stop receiving staking rewards. To maximise your profits, monitor your pledge expiration and re-pledge as needed to stay engaged in the staking process.
