Are you intrigued by the idea of DeFi and looking for an opportunity to contribute to the network while earning rewards? Welcome to the world of Osmosis – an innovative, automated digital asset exchange specifically designed for customized liquidity pools. Here, we present a comprehensive guide on staking OSMO, the governance token of the Osmosis network.
Understanding OSMO:
The OSMO token didn't undergo a sale or pre-mining process but was distributed solely to active participants of the network including liquidity providers, developers, stakers, and more. OSMO has several use cases:
- Rewarding liquidity providers.
- Acting as a governance token for protocol upgrade voting.
- Serving as the network fee on Osmosis.
- Empowering OSMO holders to stake their tokens to validators, increasing the overall security.
Staking OSMO:
Prerequisite for staking: You need to possess OSMO in your wallet. A minimum of 0.000001 OSMO can be staked. Crucial to note that you need some extra tokens for Network fees.
Remember! Once the OSMO tokens are staked, they will be locked to the chosen validator for a 14-day period. Your tokens are in a non-transferrable state while staked.
How to Stake OSMO:
The process of staking OSMO on Trust Wallet comprises a series of straightforward steps:
Access Staking Menu: Tap on the 'Stake' button to open up the Staking Menu. Proceed by tapping on the 'Stake' menu going forward.
Choose a Validator: Tap on the arrow to visualize the list of Active validators. Proceed by choosing an appropriate one.
Stake Amount: Key in the amount of OSMO you wish to stake. Keep in mind to reserve some tokens for staking/unstaking fees. Proceed by tapping on 'Next', followed by a review of the transaction and finally, tap on 'Confirm'.
Wait for Confirmation: Upon submission of the transaction, wait for the Osmosis blockchain's confirmation.
Staking Rewards:
Validators and delegators who secure the network are rewarded with 25% of newly released OSMO. Rewards are proportionally distributed among delegators, based on their staked OSMO, after deducing their chosen validator's commission fee. Osmosis allows validators to set their own commission rate but requires a minimum of 5%.
In the realm of DeFi, knowledge, and timing play a pivotal part in maximizing profits. Take up OSMO staking through Trust Wallet and make your strides into the world of DeFi today. Remember, your financial journey begins with the right decision at the right time. Happy staking and remember, stay updated with the recent version of Trust Wallet: https://trustwallet.com/download