What is staking and how does it work?

Staking can be understood as an alternative to mining that requires fewer resources. It involves holding your cryptocurrencies in a compatible wallet to support and secure transactions on a specific blockchain network. By locking your cryptocurrencies in a deposit, you contribute to the security and functioning of the network, and in return, you receive earnings in the form of interest.

We have designed a simple and transparent system to participate in staking. First, you'll need a wallet compatible with Velox and ensure you have enough tokens to invest. Access our platform, select staking, and choose the token you wish to participate in. Then, choose the duration that best suits your needs, whether it's 1, 3, 6, or 12 months, each with a specific annual interest rate. The longer you lock your tokens, the greater the reward you will receive.

During the lock-up period, your tokens will be secure and support network operations. As the agreed-upon duration passes, you will receive your rewards in the form of interest, deposited directly into your Velox account. It's important to note that if you decide to withdraw your funds before the agreed-upon duration, a penalty of 2.9% will be applied.

Example of earnings:

Let's imagine you decide to invest 10,000 tokens in staking with Velox for a 6-month duration, with an annual interest rate of 5.5%. Using the earnings calculation formula, you would earn 275 tokens at the end of the period.

Velox provides you with the opportunity to make your cryptocurrencies work for you, generate passive income, and participate in the security of the blockchain network. By joining our staking service, you can enjoy a secure and profitable way to grow your digital assets.

What is staking and how does it work?