Blockchain startup Matic Network has announced the launch of the first tranche of its ambitious staking program, which includes huge returns for external crypto network validators.
Quick reference: Matic is an already working decentralized application (dApp), which is the Ethereum sidechain that was originally launched for Binance in 2019. Earlier, the company issued an ERC20 standard token, planning to later transfer it to its own network, but soon the blockchain project switched to work on the Ethereum main network.
The creators of the project claim that the network can process from 4'000 to 10'000 transactions per second, which makes this cryptocurrency network faster than PayPal and other blockchains, including EOS.
“The Matic Network will launch its staking program in several stages. Initially, staking services will be limited to the Matic Foundation before being available for deployment to third parties. ”
According to the company, the Ethereum-based staking solution will place tokens in DeFi protocols on behalf of users, similar to the PoS services offered by Coinbase and ConsenSys among others.
The report also said that early users can expect a return on capital (ROI) of more than 120%, although there is currently no detailed information on the process for making such a profit. It should be noted that the declared value is many times greater than that of other comparable products; Tezos, for example, offers annual staking revenue of just 7%.
The release also says that users who delegate Matic Foundation tokens in the early stages will also be able at some point to become an independent network validator.
“With the participation of the IT Giant”
In the next phase, Matic will deploy its project for external validators; The project’s report said that “Matic staking provides support for several large organizations, such as the [Indian] IT company Infosys.”
Infosys, for its part, is listed on both the Nasdaq and the Bombay Stock Exchanges. In May, the company announced that it would join Matic as a validator, according to BTCManager.
The Matic project itself, based in Mumbai, India, allocated 12% of the total supply of tokens, or about 1.2 billion MATIC, to support the staking program until 2025. Nevertheless, the project representatives believe that obligations and interest from other token holders will increase to 70% by 2021.