You have created your own custom crypto token on your favorite blockchain platform. Next you need your token buyers and investors to stake your token, so you can use the investment to build your project. But how do you go about enabling your token buyers to stake your tokens? Is there any easy way to jump start this process quickly? What are the options you have? In this article lets look at the 3 options you can explore.
Note: The 3 options mentioned in this article can be employed for crypto tokens created on any blockchain platform Ex: Erc20, Bep20, Polkadot, Stellar, Custom Bitcoin fork, Trc20 etc.
(3) Create your own Staking wallet for your crypto token
( Pro: more control | Con: Need to custom develop it )
In this approach you will first need to create a stakable token on a platform that allows it ex: Ethereum, Binance smart chain etc. This type of coin/ token can be created by creating a smart contract accordingly. If your token smart contract was not built to enable staking, you can also write a new contract with staking modules built inside. This smart contract needs to be integrated inside your tokens custom wallet. Whenever a user chooses to stake your tokens, the respective number of tokens should be automatically burnt ( to avoid misuse of the staked tokens in anyway ). For this the smart contract should have the ‘burn token’ function enabled and called accordingly where needed. Also you need to maintain a data structure that clearly has records of the user wallet address and staked token count, so your platform knows who staked how much. Also you can mention the minimum/ maximum period your custom tokens need to be staked, rewards etc. in the smart contract. Upon completion of the staking period -or- if your user wants to un-stake the crypto tokens, the contract should call the ‘token mint’ function. The ‘token mint’ function will execute and create the equal amount of staked tokens and deposits it back to the users wallet address. Along with the percentage of reward tokens you have decided to give for the staking period. The staking rewards can also be minted fresh or given from the master wallet token reserve. Optionally you can write your smart contract logic to generate reward tokens based on the gas fee collected. Based on your crypto tokens business model, you can convert some of the gas fee to accumulate as reward tokens for your users. In this way, the price of your tokens will see a sharp rise whenever successful staking periods are completed. Such automated actions of Burn-Mint-reward gives your token high transaction volumes on the blockchain which will in turn increase the market cap on public CoinMarketCap websites. And also keep your users entertained and engaged to actively Buy-Stake and transact your custom crypto tokens.
Questions on this? Ask HERE
(2) List your token on a Staking platform -or- centralized staking Exchange
( Pro: Everything is taken care, Visibility, Reach | Con: Approval process, Denial, Costly )
There are many centralized exchanges that allow tokens to be staked by their users ex: Kraken, Binance. Also there are exclusive staking-as-a-service platforms where you can submit your tokens Ex: Staked, Stake Capital etc. You will need to submit your application to one of the staking platforms and await their approval. Be ready for a lenthy review process. Also each exchange and platform have their own validation process that you would need to adhere to. You also may be asked to submit additional documentation, API, Smart contract etc. to integrate your token in their platform. If your token is approved, you can benefit from the large user base the destinations already have. And there are very high chances that you can reach your goals instantly. Some of these services may also charge you a listing fee.
(1) Staking on Decentralized platforms.
( Pro: DIY, More Control, Visibility | Con: Tricky, Wait time )
The most popular type of staking platforms are the decentralized ones. Users love DEX platforms, as it gives them 100% ownership and control over their crypto assets. Being a token owner, it would be a good move to list your crypto coin in a DEX staking platform. There are many decentralized staking platforms like PanCakeSwap, Aave, Yoroi, Trust wallet etc. Based on which blockchain your custom cryptocurrency coin was created on, you can list it in the respective dex platform.Each decentralized staking platform has their own submission process. For example, if your token was created on the Binance Smart Chain as a Bep20 token, the best staking platform for your token would be PanCakeSwap.
Need help to submit your project to a Staking platform? Ask HERE.