Frequently asked questions
What is cryptocurrency staking?
Staking is the process of holding your tokens in a cryptocurrency wallet to support the operations of proof-of-stake (POS) blockchain networks. Essentially, you are committed to locking your cryptocurrencies to receive rewards (in the form of an interest) during the staking period.
What is proof-of-stake (POS)?
Proof Of Stake(PoS) is a consensus mechanism where block validators are selected based on the number of coins they are staking. In this case, the term staking refers to the act of validators committing funds to the system. So validators can only participate in the process of producing new blocks if they lock their coins. Unlike Proof-of-Work (PoW) such as Bitcoin Mining, where the algorithm rewards miners who solve mathematical problems with the goal of validating transactions and creating new blocks, in PoS-based cryptocurrencies, the creator of the next block is chosen via various combinations of random selection and wealth or age. One of the main advantages of Proof-of-Stake is energy efficiency since it is less computing power intensive than Proof-of-Work.
What is delegation?
Token holders can delegate their validation rights to other token holders (called validators) without transferring their tokens to validators in order to receive the rewards that come from producing/validating new block, inflation and query fees.
Do I need to transfer the tokens? What are the risks?
One of the main advantages of staking is the fact that you keep custody of your funds. You can spend, withdraw or redelegate them at any time you want without limitations. In some protocols, delegating may lock up your tokens for a minimal amount of time before you’ll be able to change delegators or spend them. Nonetheless, the tokens remain entirely yours, which also means that you are responsible for the security of your holdings.
There are no direct risks of delegating tokens. The only risk you take is not earning the potential rewards if some validators are cheating or running out of validator services. Carefully choose your validator to ensure quality of service and rewards.
Why should I delegate my tokens?
Once you delegate your tokens, you are participating in the proof-of stake mechanism. you will get part of the rewards provided by the protocol. If you are planning to hold on to tokens for some time, delegating will help you accumulate more tokens as rewards while contributing to the network.
How much earning can I expect?
The current estimated is around 19% APY. Exact number will be provided after the mainnet launch on 10 June 2020.
Why should I choose THStakePool?
THStakePool is a secure, reliable and efficient staking company. With reasonable fees, we are one of the most competitive service providers in the space. We are committed to radical transparency. For us, our customers come first.
What infrastructure do you use?
With 24/7 monitoring and on-call supervision, our nodes are co-located in dedicated datacenters all over the world. We use only the most secure infrastructures in the industry with fully redundant N+M hosted platform monitored by several sentry nodes.
What if I want my tokens unlocked?
By design, undelegating tokens has a grace period of 21 days. The duration is hard-coded into the blockchain and was not chosen by THStakepool. This is to improve the security of the blockchain and prevent validator hopping.