EGLD, also known as Electronic Gold, plays a vital role within the MultiversX ecosystem. As the native cryptocurrency of the MultiversX blockchain, EGLD holds immense value and significance. Staking EGLD is not just about the potential for earning rewards, it’s also a statement of support for the blockchain’s safety, stability, and decentralization. This active participation strengthens the ecosystem, making it robust and secure for all members.
Discover how to stake MultiversX EGLD by following our easy-to-understand, step-by-step guide and begin collecting rewards by staking your EGLD tokens on the MultiversX platform.
What is MultiversX EGLD
MultiversX is a high-performance blockchain platform designed to provide fast, secure, and scalable solutions for decentralized applications (dApps), users, businesses, and society. Its mainnet was launched on July 2020. The native cryptocurrency of MultiversX is EGLD or eGold. EGLD is the fuel for transactions and is used for staking, network participation, and governance within the MultiversX ecosystem.
As a tradable digital asset across numerous cryptocurrency exchanges, EGLD carries more than just intrinsic value. It also serves as a utility token and an investment vehicle within MultiversX, allowing users to leverage the network’s features, participate in its development, and possibly reap the rewards from its prosperity.
What is MultiversX EGLD staking, and how does it work
MultiversX EGLD staking is the process of locking up EGLD tokens within the MultiversX platform to support the network’s operations and earn rewards in return. Here’s how it works:
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Token Locking: To stake EGLD, you’ll need to perform token locking, a standard, safe, and secure practice in the cryptocurrency space. By locking a particular amount of tokens in your MultiversX wallet with a Staking Provider, you contribute to the network’s security and decentralization, showcasing your unwavering commitment to the ecosystem.
- Network Consensus: By staking EGLD, you actively participate in the consensus mechanism of the MultiversX blockchain. Your staked tokens contribute to network validation and block production. Simply put, your tokens help confirm transactions are valid and add new sets of transactions, called blocks, to the chain. As a participant in this process, you play a crucial role in maintaining the network’s functionality and integrity.
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Rewards Distribution: As a staker, you earn rewards for contributing to the network. That is, you will receive more EGLD tokens.
- Flexibility and Accessibility: MultiversX often allows stakers to unstake their EGLD tokens after a 10 days period.
How to start staking MultiversX EGLD?
To start staking MultiversX EGLD, you will typically need the following:
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MultiversX Wallet: You will need a MultiversX wallet to store your EGLD tokens and participate in staking. Ensure you have a compatible and secure wallet that supports EGLD and is specifically designed for the MultiversX platform.
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EGLD Tokens: You need a sufficient amount of EGLD tokens to stake. Ensure you have acquired EGLD through a reputable exchange or obtained them through other means.
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Internet Connection: You require Internet access during specific occasions, such as when you want to claim rewards or redelegate them. Ensure you have a dependable internet connection to facilitate smooth access to your wallet.
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Knowledge of Staking Process: Familiarize yourself with the staking process specific to MultiversX in this guide.
Nodes explained
MultiversX is a network of 3200 nodes, which are like individual computers, split across three parts (shards) and a central hub called the Metachain. Sharding is a strategy that breaks down the network into smaller, manageable parts to improve efficiency. At any given time period, known as an epoch, only half of these nodes are actively involved in decision-making and earning rewards. To enhance network security, nodes are shuffled randomly between the shards, making it harder for an attacker to gain control of a shard.
Each shard and the Metachain, which acts as the central coordinator for all shards, accommodates 800 nodes equally. However, only half of the nodes per shard are allowed to verify transactions and earn rewards, with the rest on standby. A Staking Provider, the entity managing your investment, with more nodes, can distribute rewards more regularly and is more likely to participate in decision-making rounds. For example, Everstake controls 55 such nodes in MultiversX, all of which have backup systems for increased safety.
Pros and Cons of MultiversX EGLD staking
Staking EGLD can offer several benefits, making it an attractive option for token holders.
Pros of MultiversX EGLD Staking:
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Passive Income: Staking EGLD allows you to earn passive income by participating in the network consensus and contributing to its security. You can receive rewards in the form of additional EGLD tokens for your staking efforts.
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Network Security: By staking EGLD, you actively contribute to the security and decentralization of the MultiversX network. This helps protect the network from potential attacks and ensures the integrity of transactions and operations.
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Potential Price Appreciation: As the MultiversX ecosystem continues to grow, the demand for EGLD may increase, potentially leading to price appreciation. Staking EGLD allows you to benefit from potential price gains in addition to earning staking rewards.
Cons of MultiversX EGLD Staking:
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Lock-up Periods: Staking EGLD typically involves locking up your tokens for a certain period (10 days). During this time, you may not have immediate access to your tokens.
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Potential Slashing: slashing will only be enabled in Phase 4, which is expected to go live in 2023. Currently, the staking phase is 3.5 out of 4.0. With 4.0, the MultiversX Foundational nodes will be decommissioned, paving the way for more third-party services to join and offer their expertise. In Phase 4.0 it will be important to choose an experienced validator.
Where to stake MultiversX EGLD
EGLD can be staked using various wallets that support staking on the MultiversX. Also, numerous third-party services like Binance extend the facility to stake EGLD. Let’s explore all the wallets where you can stake your EGLD.
xPortal
xPortal, developed by the MultiversX team, is a native mobile wallet providing non-custodial storage and streamlined management of a wide range of cryptocurrencies, including EGLD. It is the latest addition to the native wallet lineup, following the MultiversX DeFi browser extension wallet and the MultiversX web wallet. With xPortal, users can securely store their assets and enjoy a user-friendly interface for managing transactions effortlessly. Currently, the xPortal is available in App Store, Google Play, and App Gallery.
You can refer to our comprehensive guide on staking EGLD through the xPortal Mobile Wallet with detailed instructions here.
MultiversX Wallet
The MultiversX Wallet, developed by the MultiversX team, is a native Web wallet that enables users to stake their EGLD, manage NFTs, ESDT tokens, and much more. This secure wallet was launched on February 14 as a replacement for the previous Elrond Web Wallet. It serves as a gateway to the extensive range of features offered by MultiversX, facilitating interactions with DeFi protocols, decentralized applications (dApps), and other components of this vast blockchain ecosystem. With the MultiversX Web Wallet, users can experience the full potential of the MultiversX platform and explore its diverse functionalities.
For those interested in staking EGLD via the MultiversX Web Wallet, our guide simplifies the process for you. Find all the information you need here and kick-start your staking journey.
Ledger Live
Ledger Live is a comprehensive platform that offers features such as purchasing cryptocurrencies, staking assets, and managing NFTs. This secure software provides a seamless and user-friendly experience for interacting with your devices and crypto assets. With Ledger Live, you can join the community of 1.5 million individuals who rely on it for all their web3 activities. Additionally, Ledger Live supports EGLD staking, allowing you to conveniently stake your EGLD tokens through the platform.
Start staking EGLD via Ledger Live today with our comprehensive guide. Designed to simplify the process, our guide will steer you through each step with ease.
Atomic Wallet
Atomic Wallet is a multifunctional cryptocurrency wallet that enables buying, staking, and trading of over 300 digital currencies, including Bitcoin, Ethereum, and EGLD. Serving both beginners and experienced users, it emphasizes security, privacy, and is trusted by 5 million users worldwide. Even better, it’s widely accessible through various platforms, including Windows, macOS, Linux, Android, and iOS, it assures broad accessibility.
Learn how to stake your EGLD using our Atomic Desktop Wallet guide. For those who prefer the convenience of the Atomic Mobile Wallet, we’ve created a separate guide you can follow.
Why stake MultiversX EGLD with Everstake
Everstake has been actively involved in the development of MultiversX since the Battle of Nodes. As a validator, Everstake is responsible for validating MultiversX’s mainnet. Throughout this journey, Everstake has contributed significantly by creating informative guides, producing engaging video content, and publishing noteworthy articles about MultiversX. You can explore these invaluable resources here.
In addition to our involvement with MultiversX development, Everstake proudly supports the xBridge infrastructure. xBridge is an essential component of the MultiversX ecosystem, enabling interoperability between different blockchain networks. Thus, Everstake is an active MultiversX ecosystem contributor and a validator for over 70 blockchains. We have a dedicated team of DevOps, R&D specialists and a great community. Feel free to contact our EGLD Blockchain Manager on Twitter.
FAQs
What’s the best place to stake MultiversX EGLD?
The best place to stake MultiversX EGLD can vary based on individual preferences. The good news is that all wallets enabling staking EGLD are secure and easy to use both for newcomers and experienced users. You can choose from xPortal, MultiversX Web Wallet, Ledger Live or Atomic Wallet.
How much MultiversX EGLD do you need for staking?
The baseline for staking is set at 1 EGLD, although individual validators may require a higher threshold, such as 10 or even 100 EGLD. Everstake maintains a minimum staking amount of 1 EGLD. Rewards are distributed daily, and the unstaking period lasts 10 days.
Is staking crypto safe?
Staking EGLD is a secure way to get passive income. You can’t lose your EGLD while delegating. However, do keep in mind:
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Never share your seed phrase.
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Avoid suspicious ads or links
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Only download apps from trusted, official sources.
Can I stake MultiversX EGLD with Everstake?
Yes, you can stake MultiversX EGLD with Everstake. Everstake is a trusted staking service provider that supports the staking of various cryptocurrencies, including EGLD. By delegating your EGLD tokens to Everstake, you can participate in the staking process and earn rewards. For more information, check out our website.
