Staking on FreeTON and validators : TON Tips

Staking on FreeTON and validators


Posted by Team Tips on 11 May 2021

To begin with, let's understand what is Staking. According to its definition, Staking is the receipt of passive income from cryptocurrencies on the PoS algorithm and its variations. The essence of the process is to hold the coins in the wallet to obtain the right to participate in the mining of cryptocurrency and make a profit.

The Free TON blockchain works with the help of staking. Validators are responsible for staking-special operators, the number of which at the moment is more than 400 people. At the same time, more than 1000 validators can work in the network. The current staking yield is +-6% per annum, but it can be much higher. Everything here depends on the application used, as well as a couple of other factors. One of them is the number of transactions in the validator cycle. The “More is better " rule works here. Another factor is the number of validators, which directly affects the stable position of the network. The number of places ‘under the sun’ is limited, so here comes the diametrically opposite law: "Fewer people – more oxygen”.

Returning to the topic of the PoS algorithm, it should be noted that the process of reaching consensus in Free TON occurs in cycles, each of which has the same duration. To decentralize the work, each round automatically changes the roles of validators. It is worth noting that thanks to the use of such an algorithm, the process of cryptocurrency mining does not” devour " a monstrous amount of electricity, which makes staking the most environmentally friendly method of mining from the point of view of researchers. Given the current trends of states (like China) to combat mining and electricity consumption, I dare say that the future of cryptocurrencies and, in particular, Free TON Crystal, is precisely this method. Thanks to its features, TON crystal has every chance to become the “king” in the world of cryptocurrencies in the future.