🟢Staking $VTR
One of the main functions of our $VTR token is to offer rewards in the form of staking to our investors
About the stake
If a cryptocurrency you own allows staking, such as our $VTR token, you can staking some of your positions and earn a percentage rate over time as a reward. This usually happens through a staking pool, which is similar to an interest-bearing savings account.
Your cryptocurrencies generate rewards while they are staking because the blockchain puts them to work. Blockchains that allow staking use a "consensus mechanism" called Proof of Participation, which is how they ensure the verification and protection of all transactions without a bank or payment processor as an intermediary. Your cryptocurrencies, should you opt for staking, become part of this process.
What is Proof of Participation?
A new consensus mechanism called Proof of Participation emerged, with the idea of increasing speed and efficiency and reducing fees. Proof of stake reduces costs mainly by not requiring all miners to solve mathematical problems, a process that requires a lot of electricity. Instead, transactions are validated by people who are literally invested in the blockchain through staking.
Staking serves a similar function to mining in that it is the process by which a network participant is selected to add the most recent batch of transactions to the blockchain and earn cryptocurrencies in return.
The precise implementations vary from project to project, but basically, users make their tokens available for a chance to add a new block to the blockchain in exchange for a reward. The staked tokens of these people act as a guarantee of the legitimacy of any new transaction they add to the blockchain.
The network chooses validators (as they are generally known) based on the amount of time they have already spent and the size of their stakes. Thus, the most dedicated participants are rewarded. If transactions in a new block are deemed invalid, users can have a certain amount of their stake burned (i.e. destroyed) by the network, a penalty that is known as slashing.
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