Does Xaman offer Staking?
How can I earn money with Xaman?
What is staking?
Generally, there are two types of staking in the blockchain space.
1) Some crypto exchanges will allow you to lock up your tokens with them and pay you rewards for doing this.
2) Proof of Stake networks (Ethereum 2.0, Cardano, Tezos, etc.) allow you to lock up your tokens for the opportunity to validate a new block on the network for which you would receive a reward.
How does staking work?
Staking varies depending on which exchange you are dealing with, but generally it is similar to how a bank might give you interest on funds you "invest" with them. In many cases, the bank will use your funds to make money for themselves, then pay you a small amount from their profits.
With an exchange, you deposit your tokens into an account and they use your funds to earn tokens from the blockchain. They keep the majority of the tokens that they "earn" and give you "rewards" for letting them use your tokens.
On a Proof of Stake (PoS) network it works a bit differently.
Basically, a validator "locks up" a bunch of coins to prove that they are committed to the blockchain. The PoS consensus mechanism randomly selects from the pool of validators to see who will get the opportunity to produce and validate the next block on the blockchain. The larger the staked amount, the higher the chance of been chosen to create the new block on the network. The validator that is chosen to create a new block, receives a reward so there is an incentive to stake more coins.
Can I earn rewards by staking on the XRPL?
No. The XRP Ledger is not a Proof-of-Stake blockchain. The XRPL uses the XRPL Consensus Protocol to validate transactions and does not rely on staking like a PoS blockchain does. The XRPL validation process is not a competitive based system, it is a cooperative based system.
Can I earn rewards using Xaman?
Xaman does not offer a reward program but there are a couple of ways to earn crypto in the XRP Ledger /Xahau community.
Automated Money Maker (AMM)
The XRP Ledger does offer AMM pools which have the potential to generate returns on invested assets.
This article explains how it works:
Balance Adjustments
The Xahau network offers a balance adjustment feature which allows you to collect 4% of your XAH holdings over the period of a year.
See this article for more information:
How do other wallets/projects offer staking?
There are projects that have created various "staking" schemes on the XRPL. Almost all of them offer rewards in the form of issued tokens. If you wish to participate in any of these schemes, please contact them directly for details on how they work and instructions on how you can enroll.
Please make sure that you fully understand how they plan to generate returns and only risk funds you are prepared to lose. Xaman does not endorse or support any staking programs.
Last updated
Was this helpful?