As we are approaching the end of the year, the PEX team is working hard to give a nice Christmas and new year gift to our community!
In the coming days, we are going to step by step release our staking offerings to our community. In this article, we would like to outline our staking roadmap.
What is Staking?
Staking in crypto-land refers to the process of locking tokens in a smart contract in return for rewards. The stake tokens may or may not perform a functional role. For example, in blockchains using proof of stake technology, the tokens are staked as collateral to ensure the honesty of the participants in a proof of stake.
What is the function of staking for Project-X?
We are introducing staking to encourage and reward long-term holders. The holders are providing stability to the project and allowing us to focus on building and delivering on our promises. Therefore, we think they should benefit additionally for their patience and for locking their liquidity in the PEX token.
Furthermore, the Crypto market is risky and volatile. There are massive rewards but large corrections are the other side of the coin. At the time of writing, BTC is experiencing more than 30% correction. Our staking program is trying to cushion the effect of such drops in the price by providing additional rewards to our community and holders.
As explained earlier, all our staking contract rewards holders who are willing to lock their tokens in the staking smart contract.
The reward period for different staking contracts is different. Make sure you check this information before locking your tokens.
Can I unlock my tokens before the maturity date?
Yes! You can unlock your tokens at any time you want. But (important!) you will lose your rewards if you unlock before the locking period has ended. So we encourage you to select the contract that fits your holding period.
Please note that we won’t be able to reimburse you for the lost reward if you unlock it earlier. The smart contract is a code and doesn’t listen to us! :)
We have studied a variety of staking schemes in the market and we have are going to provide several options and allow our community to choose their preferred staking option.
The classic staking is simple. We have a daily reward in PEX token in the staking smart contract. On a daily basis, these rewards are distributed between stakers based on the staking percentage. The more tokens staked, the more rewards.
The classic staking provides a continuous reward like the interest rate in the bank. But some may find it dull. For a more adventurous bunch, we offer lottery staking!
Similar to the classic staking, there is a daily reward. But these rewards are offered to one lucky winner on a daily basis. The number of lottery tickets (hence your chance of winning) is proportional to the number of staked PEX tokens.
The LP (Liquidity Provider token) staking provides rewards for liquidity providers on Decentralized Exchanges (DEX). The majority of our trading volume currently happens on PancakeSwap. The LP staking program offers a daily reward to liquidity providers who are willing to lock their tokens for the reward period of the contract.
Our smart contract for the classic staking is ready and tested. But to make sure that there is no risk or security threat, we have submitted the smart contract to Solidity Finance for audit. We will release our classic staking as soon as our smart contract has passed the audit. We expect this to happen before the end of the year.
The Lottery staking and LP staking are planned for January and February 2022.