matic staking

Cryptocurrency

A Comprehensive Guide of MATIC Staking: Is It Profitable for Investors?

Last Update: 2022-03-07

What is Polygon (MATIC)?

Polygon, a new decentralized network for gaming has its own cryptocurrency called MATIC. It's used to pay fees on the Polygon chain. Moreover, it also provides holders with voting power in governing bodies that make changes or updates about this platform. The name “MATIC" comes from an earlier stage in Polygon’s development following the launch where developers rebranded themselves in early 2021.

Data Value
Polygon Price $1.6963
Market Cap $12.68B
Trading Volume $1.28B
Transparent Volume $777.30M
Transparency Grade Good
Circulating Supply 7,477,274,364
1st 1D Candle April 19
1st Trade April 19
1st Order Book April 19
Exchanges 166
Trading Pairs 2,561

How Does Polygon Work?

The concepts behind Polygon are like an express train on the subway. It travels along regular railway tracks, but makes fewer stops and thus moves much faster than other trains do in their respective regions of operation. It is because of using different technologies to create its speedy parallel blockchain which links together with Ethereum's network through a Proof-of-Stake consensus mechanism. 

The validators are the ones who do all of this work. They're committed to running a full-time node or computer, and they have their own stake in MATIC as well. In exchange for being such an active member of the team, they could earn some fees along with newly created coins each time one gets minted.

The MATIC delegator stakes their position through a trusted validator, but this is a much lower commitment than staking. Staking is a commitment that requires research to ensure you don't lose your investment. If the validator acts maliciously or makes mistakes, it could put staked funds at risk.

What is MATIC Staking?

You can earn a passive income by staking your MATIC tokens. All you need to do is delegate them and then claim rewards regularly. You also have the option of staking these earnings for compound interest. Much like an interest rate, the reward for staking can change depending on network conditions. 

Polygons' 12% allocation is dependent upon how many people are currently active in determining where it goes within its total supply of 1 billion MATICs or about 15 minutes’ worth. 

The protocol also reduces this percentage every half hour. So, there's no need to worry about losing any potential earnings if you happen not to be online at just exactly the wrong moment when your investment doesn't pay off.

If you're interested in becoming a node validator, there's never been an easier time. You can stake as low as one ($1) MATIC and still get access to almost unlimited services from the network. However, the Validators have authority over what limits are acceptable for participation in this network. 

They might charge fees or commissions when providing services related to validation requests. Stakers may choose from one day up until 9 days. All with an unlock period that ensures their investment remains safe while they're not needed anymore.

Data Value
Total Validators 100
Total Stake 2,637,287,581 MATIC
Total Reward Distributed 474,235,622 MATIC
BOR Block Height 25,349,433
Heimdall Block Height 8,440,138
Last Checkpoint 28,480
Checkpoint Interval 39 Minutes

What Are the Prominent Platforms for MATIC Staking?

The process of staking cryptocurrencies can be easy and straightforward, but it's important to know which platform will best suit your needs. Centralized exchanges like Coinbase offer many benefits over decentralized ones. For example, they allow you purchase coins with fiat currency directly from their website rather than having another cryptocurrency wallet first. 

There are also some limitations placed on users by certain countries. For instance, restrictions against US residents buying bitcoins or hiring traders based out East Coast cities due to lack of regulations. However, those who live inside The USA should still feel comfortable using Kraken instead. 

Some of the most common and popular platforms are Binance, Gemini, FTX, Coinbase, and Huobi. You can also pick any validator like Coinstash, VK Labs, Matrix Stake, Cryptonomicon, and Mind Heart Soul. 

What is Proof-of-Stake Mechanism?

Proof-of-Stake is an alternative to mining, which helps secure networks. It doesn’t require powerful computers for this consensus mechanism like in cryptocurrencies such as Bitcoin and Ethereum that use PoW. In this case, investors who contribute their computing power can get rewards from cryptocurrencies by running staking nodes. This process requires no additional hardware. 

With the Proof-of-Stake mechanism, you can contribute to a network by not selling and locking up your assets. Elrond's Secure PoS (SPoS) is one such example cryptocurrency that uses this method for generating staking rewards. 

This mechanism offers environment-friendly benefits compared to other methods like Bitcoin mining which are very costly on an environmental level. Because Bitcoin mining requires tons of computer resources all around the clock at high temperatures in order just create new coins annually.

There are some similarities between staking rewards and dividends. For example, both offer a share of the cryptocurrency network's profits as an incentive to early investors. However, there is one major difference. Stocks typically trade at inflated values due to their popularity among traders looking for dividends. On the contrary, crypto prices don't necessarily rise when demand increases because people only want them if they think their value will increase over time. 

When you stake MATIC, for example, it doesn't matter how high or low the price moves as long as there are still tokens left to participate in. You'll get a share of all staking rewards regardless of whether prices go up and down over time. What matters most with this project is simply putting your funds into action by investing now.

Benefits of Staking on Polygon PoS

Incentives on the Polygon PoS mainnet are non-inflationary, making it easier for new users to get on board. Nodes may be yours or rented out to the community. The amount of $MATIC staked and the number of transactions on the network determines your rewards. Apart from these, there are 5 major benefits for investors:

Low Hardware Requirements

We don't think you should spend a lot of money on hardware for this project. While the platform has been known to favor certain operating systems. We recommend using Linux servers over desktop ones like Mac OS or Windows because they are more secure and stable.

Slashing

The idea of staking is that it places funds at risk. But if you're smart about where your money goes then this shouldn't be an issue. There's no way for one person or even a group of people to take advantage because any flaw will get penalized by someone else.

Sustainability

Polygon is environmentally friendly because it doesn't require energy-intensive computers, making the Polygons ecosystem sustainable.

Get a Chance to Be in the Community

There are over 3000 blockchain-based applications in the world, and Polygon is growing it every day. Help secure them by being a part of what you'll be experiencing tomorrow.

Earn Rewards

One-twelfth of the 10 billion tokens in circulation are earmarked for staking rewards. In order to accept delegates to your node, you may set up your own commission. Additionally, the platform offers annual incentives to encourage investors.

How to Stake MATIC in Polygon Wallet Using MetaMask and Ledger

Staking MATIC in Polygon wallet is not a tough nut to crack. However, you need to follow a few steps to successfully stake the MATIC tokens. Let’s get started!

Step 1: Download a Ledger Live App

You can download the Ledger-Live App by going to the official Ledger website. Click on the Download the App button and choose the right version for your device from there. You can easily connect and unlock your Ledger hardware wallet once you have the Ledger software loaded on your phone or tablet. 

Step 2: Connect the App with Ledger Device

To finish the setup, go to the Manager section and connect your Ledger device via USB. Entering your PIN on the Ledger device will enable you access to the Ledger Live app. 

Once you've done that, click on the Manager icon in the lower-left corner of the Ledger Live app's UI, as seen in the image below. Go to the App Catalog once you've run the Manager. It'll be there. Select and install the Ethereum (ETH) app using the search box.

Now that you've downloaded and installed the Ethereum app, you may use it to connect your Ethereum account. Using the drop-down option, choose Add account. After completing the Add account method on the Ledger Live interface, you will be prompted to open the Ethereum program on your mobile phone or tablet

Approval of the Ethereum App means that your application may be used. All of the Ledger's Ethereum accounts are searched for and located using synchronization.

It will be possible to see all of the currently synced wallets and their balances, as well as create a new one. Click Add account once you've given the account a new name you like. Your account has been added successfully. 

Step 3: Connect Ledger Device to MetaMask

The MetaMask wallet is expected to make staking with the Ledger device a breeze. Go to the MetaMask online wallet and click on the circular symbol in the top-right corner of the page to attach your hardware wallet to the wallet.

Connect the Ledger cable to your computer and then click Continue to select the kind of Ledger device you wish to use. Select Ledger from the drop-down option to link it to MetaMask. Set up a successful MetaMask connection and then go for Ledger Live's Accounts section. 

When you log into your Ledger Live account, you'll see the prior account you added to the device shown on the screen. Decide on the account from which you'll be able to make purchases and withdraw funds as needed. Receive will let you choose the Ledger account that was set up on the device.

Once you've selected the account to be credited, click the Continue button. Make sure the address is accurate. Press the Approve button on the Ledger device to confirm acceptance of the address once it has been generated and verified. Make sure that the Ledger Live interface displays the correct address before proceeding. If it's the same as the one on your PC, the Ledger device will recognize it.

Once the address has been provided, you may go to the next step by selecting it from the MetaMask online wallet. To continue, click the Done button. Select the account on your MetaMask interface that will be used for staking and you'll be good to go.

Step 4: Attach Ledger Wallet with Polygon Staking Interface

Once you've linked your wallet to your PC, you may begin staking MATIC. Choose the account on the Ledger device that is connected to MetaMask and click "Connect". The Ledger Device may be authorized by choosing Connect.

You'll be prompted with a message in the form of a pop-up to confirm your purchase. Using the Ledger device, you will be able to sign the data in the smart contract. In order to reveal the hash, you will need to sign a message received to your Ledger device.

You can now view all of the information about the wallet that was connected in the upper right corner of the screen. In order to get your wallet's address, you may scan the QR code, or you can log out.

Step 5: Delegation of MATIC

A validator must be chosen before you can begin reaping the advantages of MATIC in a simple and secure way. We recommend that you use credible and well-known cryptographic validators.

To access the Polygon network's Validators section, go to the Become a Delegator section and choose Show All from the drop-down menu. This section contains all of the validator's data, including stake totals, uptime, and the commission paid to the validator. After choosing the validator from the drop-down menu, click Delegate to assign the task to that person.

To begin, decide how many tokens you'd want to delegate to other participants. Click the Continue button to provide your approval for the transaction. Finally, click the Delegate button to complete your purchase. Once the transaction is complete, you'll be able to cash out the MATIC tokens you've staked.

Notes like these would be sent if the delegation completed its task. You have completed the staking process and the delegation of MATIC coins. When a checkpoint is submitted, your delegation is reflected in your wallet and you'll begin receiving rewards right away.

Pros & Cons of MATIC Staking

Pros

  • A constant stream of passive income
  • It helps the community grow and benefits
  • Low chances of loss
  • Improve the security of the network
  • Give a long-term investment opportunity

Cons

  • The coin is still in the early stage
  • Not backed with any physical asset

FAQs

How much you can earn from Polygon?

Your earnings potential from staking Polygon (MATIC) will be based on two factors: the current market price ($0.005) and the bare minimum quantity of coins to be purchased. The following is an example of a scenario: At least a month-old MATIC token in your wallet may earn you 0.8% per day or 8% a year in interest, depending on your holdings.

How long does MATIC staking take to unbond?

Currently, the unbonding duration is set to 80 points. This will take around 3 to 4 days. Typically, each checkpoint takes around three hours to reach. Congestion on Ethereum, on the other hand, may cause a delay at a few spots along the way.

Does hardware wallet support MATIC stake?

Yes, hardware wallets are supported in this system. If you want to link your Hardware wallet to MetaMask and then continue with delegation, you may use the "Link Hardware Wallet" option.

How to withdraw rewards?

There is a "My Account" tab where you can view a list of all the delegates for a validator, and you may collect your rewards from there. Simply click on the "Withdraw Reward" option to have your winnings delivered to your designated MetaMask account for safekeeping.

How to restake MATIC?

"My Account" is where you'll find the rewards page. There are two possibilities to choose from restake rewards and withdraw rewards. When you click on Restake Reward, you'll be prompted to authenticate your Metamask account. Only once you confirm the purchase will the restake be complete.

Conclusion

If you are looking for a passive income source, MATIC staking could be the perfect choice for you. You can stake MATIC by holding its tokens in your wallet and earning rewards based on the number of tokens you hold. We hope that this article has helped to answer some of your questions about MATIC staking and how it works. Are you ready to start staking?

Features Blogs

More Blogs