Staking on Parex Chain
Stake your PRX on Parex Chain and earn more PRX!
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Stake your PRX on Parex Chain and earn more PRX!
Last updated
Was this helpful?
Staking is an integral part of a Parex Chain's consensus mechanism. It involves holding PRX in a wallet to support Parex's operations, to secure transactions, and to maintain the blockchain's integrity.
Participants earn rewards (additional PRX), which serve as motivator for contributing to the network's stability. They also get opportunities based on the percentage of their stake in the total pool of stakes. Among the opportunities are validating transactions, creating more blocks, and becoming validators.
In the world of cryptocurrency, there are various ways to manage your crypto assets, with Locked Stake and Unlocked Stake being among the primary methods. Let's take a closer look at these two concepts with examples using Parex ($PRX) coin.
What is Locked Stake?
Locked Stake involves locking your crypto assets for a specific period. When applied to Parex ($PRX) coin, the Locked Stake process lasts for 365 days. During this period, you lock your $PRX coins by staking them for a set duration. Profits generated through Locked Stake are transferred to your stake wallet hourly after deducting a service fee equal to 7% of the stake amount. At the end of 365 days, it's not possible to retrieve or redeem the locked tokens because the total generated amount is transferred to the stake wallet in equal parts over the 365 days.
What is Unlocked Stake?
Unlocked Stake refers to the ability to freely use your crypto assets whenever you want. When applied to Parex ($PRX) coin, Unlocked Stake allows for the flexibility to unlock at any time. After giving the instruction to unlock the stake, your $PRX coins become claimable after 9 days. During this period, you can use your unlocked tokens whenever you wish or release them for other transactions.
Conclusion
Locked Stake and Unlocked Stake are two different methods of managing your crypto assets, such as Parex ($PRX) coin. While Locked Stake enables you to earn a passive income by locking your tokens for a specific period, Unlocked Stake allows you the freedom to use your tokens whenever you want. Regardless of the method you choose, it's important to carefully evaluate the risks and rewards when managing your crypto assets.
