Ah, Tron Staking. I love it so much. It's a great way for basically anybody off the street to put a little skin in the crypto game and see some rewards in a day. I personally think it is a great motivator to wake up in the morning and see that your wallet was just credited a few more TRX for your trouble. Think of it this way; How many times do you get excited for putting money in a traditional savings account? On top of that, any traditional savings account will only net you a tiny little baby percentage. In order to see some real action, you need to has a LOT of money. With TRX staking, you can look at percentages anywhere from 7 percent to 10 percent! That's some real power there.
Fun, Fruitful, and Fabulous. That's the Three F's of Tron staking. There's only one “F” I can think of with traditional banking and honestly, that's a no-no word.
“Lube will incur an additional service charge”
ANYWAY, before we go on our little excursion into the “ins” and “outs” of staking, I just wanna be real with you for just one second. I'm some guy on the internet. If I could get away with writing this naked in my own home, I would. Don't trust a potentially naked person; do your own Due Diligence and talk to your doctor to see if TRX Staking is right for you. This is not financial advice, just a fun opinion of yours truly.
GETTING THE GOODS
Before you can stake TRX, you need to have two things: Access to an exchange that sells TRX, and a wallet. I personally use both Tronwallet.me and BitMart for my starting tools. These are not the only ones out there. And of course, if you have a Binance account, you can save yourself a little bit of time and Stake through Binance. They do the Freezing and Staking for you all with the touch of a button. I will warn you though; if you choose to do this, you only have one option for your staking, and if for some Freak of Nature reason, if Binance goes belly-up, you're looking at potentially losing all of your nut. Don't lose your nuts. Protect them. Put your stuff in a trusted wallet.
Now Tron specifically endorses and encourages the use of several different wallets that can be used for staking. I will leave it to my reader as to which one they should use. If you're gonna back me into a corner and beat me until I gave you a suggestion here's what I would tell you:
1.) Please don't threaten me with a good time.
2.) Check out Tronwallet.me. They have done good by me. However I'm sure there are others that might suit your fancy better Everyone's got an opinion and tastes.
In terms of exchanges, there's several you can do your business from such as Binance and Bitmart. However, there are several options and you can look at those options HERE. Hell, you might already do business with one of the TRX exchanges. Saves you a step.
The REPRESENTATIVES and CANDIDATES
Okay, so here's the skinny on the entire staking/ voting system. First, you have your candidates. These are folks that go through the process of being a candidate, which means they basically pay 9999 TRX, set up a website that goes over their community plan, percentage they pay out to voters, etc. The first 27 candidates with the highest number of votes get to become Super Representatives, which are awarded 16 TRX every block, which is about 3 seconds per block. The Super Representative will then 168 MILLION TRX a year this way. As a result, Depending on their voters and the number of votes they have each, a percentage of that reward is awarded to the voters.
Candidates who are not SRs are recieve a particular amount of TRX every 6 hours, similar to the super reps, and that amount is distributed among the top 127 candidates.
When it comes to rewards and its calculation, the Tron Website goes through it all with great detail. An interesting read, and something I recommend anybody doing if they wanna stake TRX (or hell, maybe even become a Candidate themselves!).
Choosing the Right Representative for YOU
There are many different reason why one would want to choose one candidate over another. The three major qualities I looked for was:
1.) Will I be able to maximize my voter rewards with the candidate?
2.) Do they pay out reliably?
3.) Do they offer any additional "perks" for being a loyal voter?
This information on your own can be quite difficult to come by, but it's okay. My go-to to see the state on all the Tron Reps is Token Goodies. This site was indispensable for Learning more about each Rep, forecasting rewards based on either your account OR your number of staked TRX. They tell you if their payout is reliable, and also goes into detail on what kind of incentives they offer potential voters.
My personal choice, TronWalletMe was a great choice for me. They pay out in regular intervals, the daily reward is competitive, and they offer loyal voters a share of 30k TWX to loyal voters based on their number of votes (TWX is TronWallet's signature TRX Token).
That's cool! But don't just do them because I say they're good.
Okay I Chose My Rep and I'm Staking Now. WHY Am I Doing This??
Traditionally, before the advent of PoS and Delegated PoS (That's Proof-of-Stake), the most common way for people to get their hands on some sweet Crypto (besides buying it) was to mine for it. Essentially, PoS offers some really nice solutions as an alternative to mining:
1.) Damn near anybody can do it. Tron, for example allows any account anywhere that owns TRX to participate in the voting system and Stake their tokens. All you need to do is follow some simple steps and you're up and running. Mining, while interesting and rewarding in its own right, has a huge barrier to entry. You need to know about hardware, software, where to go, how to set it up, etc. It is no trivial task. Not everyone is gonna be interested in going through all the IT "Mumbo Jumbo" to get their hands on some Magic Internet Money. In this way, PoS and DPoS opened up the Crypto world. Mass adoption means ease of use for everyone. For example take a look at Apple. They made the smartphone both snazzy and easy to use for the everyday Joe. If the Everyday Joe can't use it, he ain't. He's got better things to do like his taxes or plumbing. HOWEVER, with staking rewards, he can have his own little nest egg of Crypto and worry little about say, a thousand dollar electric bill.
2.) Not only are you receiving a better percentage on your money every day you stake, you are also gaining more in the event of a price spike, or if the currency staked enters a new "higher low" and stays around that price for a while. If the price drops a bit, no worries, you're still gonna get your rewards. There might be a few changes, but you know it can weather the storm. If you're mining, the price of BTC drops and you have found yourself on the way to the poorhouse in a day. I'm not hating on the miners; I'd like to so it myself someday. BUT until that day comes, there are other options available to people.
Now, Tron is definitely not the Lone Ranger when it comes to PoS and Staking. In fact, there are several different coins out there who do the same or similar things, and they have percentage rewards available to them as well. But, I would say that Tron has the lowest barrier to entry on this. Please argue with me if I am in fact wrong.
The Bottom Line
I have staked for a while now, and the rewards come in without having to do much of nothing for it. I currently re-invest all of my staking rewards to get more votes, thereby increasing my reward share over time. I would say that would be a good thing for many folks to do if they're able. Build up that money over time, sell when the time is right. Or just save through the swings and sell when you're ready. It's all up to you in the end.
Thanks for reading, I REALLY really appreciate it. If you like this post, then please check out some of my others if you want.
AND if you want an easy way to earn a little extra crypto and help me out for FREE, please consider becoming my referral for the app FREE LITECOIN! They payout reliably every Tuesday. I have recieved several payments from them and the offerwalls they have bring in some nice amounts too. Highly recommended.
Until Next time...