Red Pulse has announced it will provide users the ability to stake PHX tokens on PHOENIX platform wallets, beginning August 20th. Staking is the process of holding cryptocurrency in a wallet or smart contract in return for access to functionality or rewards. In the case of Red Pulse, staking PHX will make owners eligible to receive additional tokens through an inflation protocol.
To stake PHX tokens, users must hold their tokens in a Red Pulse account on its website below:
www.redpulse.com
Staking PHX tokens is achieved by converting or “firing up” to PHF, or the PHOENIX Fire token. Once PHX tokens have been deposited on the Red Pulse platforms wallet, users can convert PHX tokens to PHF (PHOENIX Fire) staking tokens by clicking the “fire up” button. The conversion ratio for PHX to PHF tokens will be 1:1.
To convert staked PHF tokens back to PHX tokens, users will need to select the “fire down” button in their “Phoenix Fire Account”. Once the de-staking process begins, it will take 30 days to convert back to the PHX token. Staking will cease as soon as the “fire down” process begins.
For a step-by-step guide to staking PHX tokens visit the link below:
https://blog.red-pulse.com/everything-you-wanted-to-know-about-staking-f2001d5f379b
Staking Tiers and Inflation
Red Pulse plans to initiate its inflation protocol upon enabling staking on the platform, increasing the token supply at a rate of 10% of the total PHX supply per year. From the newly minted tokens, 50% will be reserved for rewarding contributors on the platform and 50% will be divvied among the staked users.
A tiered staking system has been established, which determines the rates users receive for their tokens staked. The tiers include:
- Silver: 0 to 99,999 PHF staked
- Gold: 100,000 to 999,999 PHF staked
- Platinum: 1,000,000 to 9,999,999 PHF staked
- Diamond: 10,000,000+ PHF staked
Regardless of tier status, users will receive a 5% base staking rate. The staking rewards earned by the 5% base staking rate will then be subtracted from the total amount of PHF reserved for staking. This leftover amount will go into an excess staking pool, which will be divided among staked token holders and weighted by their tier.
Staking rewards will be calculated and distributed on a daily basis.
For more information about Red Pulse visit the following links.
About The Author: Dylan Grabowski
Dylan is a reformed urban planner with a passion for covering the Neo ecosystem. His objective as a writer for Neo News Today is to report news in an objective, fact-based, non-sensational manner. When not behind a computer screen, he can be found in the mountains rock climbing. Find Dylan on Twitter (@GrabowskiDylan).
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