15 August 2018
As you may know, the PHX token swap has since begun and Red Pulse has announced that they are now prepared for staking. According to Red Pulse, the staking will be launched by the 20th of August, 2018. Once the staking is launched everyone would be capable of depositing their PHX tokens directly into their Red Pulse platform wallets and subsequently receive staking rewards for their efforts. This article will give you an insight into what staking is all about and how it basically works. There are fundamental questions you might want to ask at this point and these questions may begin as…
For anyone not not too familiar with the word – “staking”, well you should know that staking has quite a number of meanings. However, in the cryptocurrency world, staking is basically the reward that an individual will receive for their support of a particular token or network through either having the cryptocurrency in their possession or by operating a node.
Staking in itself can be executed in many different ways, but Red Pulse has integrated staking with the Red Pulse platform for good measure. This has been done so that holders of PHX tokens wishing to stake their crypto will have to deposit their PHX tokens in their respective Red Pulse account. Once this is done (i.e. depositing your PHX in your Red Pulse account) you will have to then convert the PHX tokens in your account into “PHOENIX Fire” or PHF. You will begin earning staking rewards as soon as your PHX has been converted to PHF.
Here are three simple steps on how you can stake your PHX tokens.
Step 1: You need a Red Pulse account as mentioned before. As soon as you have opened an account, login and then go to “My Wallet”.
Step 2: Convert your PHX tokens to PHF. This is done when you click on the “fire up” icon.
Step 3: Once your PHX has been transformed to PHF, you will receive staking rewards according to the value of your PHF. There are two buttons, the “fire up” (used to convert your PHX to PHF as stated above) and “fire down” (used to convert your PHF back to PHX).
Note that the rate of PHX to PHF conversion is 1 to 1. Furthermore, the process involved in the “fire down” (i.e. converting PHF back to PHX) will take approximately 30 days and once this process commences, there will be an end to staking on the amount of PHF that is being converted back to PHX.
Red Pulse has stated that they will “turn on inflation” at about the same period as the staking. They further said that the overall amount of PHX supplied will rise per annum at a 10% rate as soon as the inflation has being turned on. According to Red Pulse, 50% of the tokens that were recently minted will be distributed to users that are staking on the Red Pulse platform while the other 50% will be held and then distributed as reward to contributors to the platform.
Red Pulse will calculate the staking rewards of each individual through a tiered staking mechanism which will motivate individuals to stake much more PHF. With the tiered staking mechanism the rate at which an individual will receive PHF can easily be known by all concerned and this rate is in direct correlation with the total amount of PHF that is being staked by an individual.
Red Pulse created four tiers namely (note: from the highest ranked to the lowest ranked tier) ;
Regardless of which tier an individual is on, they will receive PHF at a 5% per annum rate, which is the basic staking rate. Red Pulse will subsequently deduct the total volume of staking rewards that are received by every user (i.e. staker) directly from the total volume of PHF that was kept specifically for the purpose of staking.
Finally, the remaining amount of PHF kept for staking will be reserved in a staking pool. The remaining amount of PHF in this staking pool will then be distributed to users according to their respective tier. The respective tiers are weighted as follows;
– Silver tier: 1
– Gold tier: 2
– Platinum tier: 4
– Diamond tier: 8
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