STAKING MECHANISM ON THE BLUZELLE ECOSYSTEM
Bluzelle database service intends to become an invaluable data layer for web 3.0 by making provision for a tamper proof,reliable, privacy driven and totally scalable data network. It is a system that preserves data across thousands of nodes around the globe with each node proffering a storage space and generating a fee on the process.
With its proof of stake design,it intends to combat any fraudulent conduct that would ruin the image of the network and to ensure that whatever changes effected to a user’s database is authentic and properly validated.
It is a decentralized infrastructure that supports the growth of decentralized finance, a system powered by cosmos,and a delegated proof of stake which handles more than 10 000 tps, this implies that any laptop,gaming console,mobile device,desktop computer and other compatible tools can become nodes on the bluzelle system.
WHAT IS STAKING IN CRYPTOCURRENCY?
Descriptively,staking is the activity of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. It is the act of locking up cryptocurrencies in order to receive rewards in return.
Staking involves validators who lock up their coins in the system so they can randomly be chosen by the protocol at various intervals to generate blocks. Usually, individuals who stake higher coins than the others always have higher chances of getting selected as block validators.
STEPS TO STAKING ON THE BLUZELLE PLATFORM.
Below is a step by step approach to staking on the platform
- First, one is expected to load his etherum BLZ account on metamask, this is possible if a user is in the etherum mainnet and has enough ETH in his wallet that will facilitate the movement of funds to the etherum BLZ account.
- Generate a bluzelle BNT that corresponds with the already created etherum account. For new users,there is a seed phrase to be generated, and it is important to copy and save the seed phrase as one will need it in order to log in.
- Here, a user is required to convert the erc-20 BLZ token to the bluzelle BNT token which is ideal for staking on the bluzelle platform. Under the etherum account block, click on ‘’convert to BNT’’ and input the amount to be converted, then confirm your transaction on metamask.
- Note that you can only transfer 10–25 000 BLZ for each transaction,after which the erc-20 tokens will be sent and stored in the bluzelle official house wallet. The amount of erc-20 BLZ tokens deposited is proportional to the amount of BNT tokens one will receive.
Furthermore, a maximum of 24 hour delay should be expected as the etherum cosmos relay will be made to run a number of times in a day. After the related completes its running, the BNT token balance will reflect on the account and can also be verified from the bluzelle explorer.
- As soon as the BNT balance reflects and is verified on the users account,one can begin staking by clicking on the ‘stake’ button,select a validator from a list of validators and input the staking amount.
- It is important to know that for every transaction, 2 BNT is charged as network fee, for instance, if a user has 2000 in his ‘’available balance’’, he can only stake 1998 as the 2 remaining will be used as network fee.
- At this point,staking rewards can be claimed by validators. This is possible in two ways.
- The network fees, which can be claimed under the ‘’my account’’ page with not less than 2 BNT in the user’s available balance to be eligible to send a ‘’claim reward’’ request.
Secondly, the additional staking reward from the bluzelle pool which is automatically credited to a validator’s ‘’available balance’’ every 24 hours and can be used instantly.
The bluzelle platform in a bid to incentivize users’ loyalty, encourage tenure as well as larger stakes has designed the unique bluzelle staking reward. Users who stake earlier than others stand a chance to benefit more than late comers,moreover, by staking with bluzelle, one is guaranteed a 25% APY retrieval based on the time they come in and the total token ratio staked in the ecosystem.