HNT Staking and Maximizing Returns
Whether you're new to Helium and HNT staking or a seasoned professional, you can use several tips and tricks to improve your staking experience. Here's a brief guide of things you should know before you begin.
HNT staking explained
Become a validator to stake HNT:
Helium staking is the process of staking coins and crypto. The amount of money a validator earns depends on the initial stake. The minimum staking amounts vary by coin, but can go as low as tens of thousands of dollars. The amount of rewards for earning also varies by the total supply of HNT in circulation.
You can stake multiple validators to increase your chances of earning. You can also stake different types of cryptocurrencies. There are two basic types of staking: partial and full. Generally, a full staker retains all earnings minus the operational costs. However, a partial staker can split the stake with other validators in the Vanager network.
A validator node is a beefy cloud computer that performs consensus group. It adds new blocks to the blockchain and checks transactions. It also maintains the shared network state and helps keep the network secure. You can get a validator node started by staking 10,000 HNT. Then, you'll need to install the node software in a suitable environment.
To earn rewards, a validator must be online and perform consensus group work. HNT staking rewards are paid out every 30 blocks and a validator node is rewarded for stability and security. There are a few penalties for failing to participate in the consensus group.
If a validator is not in contact with the network for a period of time, the reward is slashed. The maximum penalty is five months. Then, they can participate in the Consensus Group again after the same amount of time.
For those looking to earn passive income, you can also invest in an unstaking validator. These are great ways to support the network without staking.
Transition to Proof of Stake
Using crypto-economic incentives, Helium (HNT) incentivizes participants to build Internet of Things (IoT) networks. The network is secured by Helium's blockchain, and hotspots provide service to IoT devices.
In the past months, there has been a significant MoM increase in the number of hotspots on the network. These operators are using consumer-grade hotspot hardware and basic internet connections.
Helium uses the Proof of Coverage protocol to validate hotspot locations. This allows the network to operate securely across distributed operators. In addition, it distributes rewards to HNT holders.
These rewards are then sent to verify transactions.
Author: Hassan Alzaza
My Name is Hassan Al-Zaza, I am a detail-driven and experienced SEO Content Writer living in Germany with over ten years of experience developing and producing top-notch content. I have a Bachelor's degree in English Language and Literature and a Master's in Business Communication. I have been working for 12 years in marketing, Content Writing, and ad Copywriting across SMEs, corporate, and public sector organizations in the EU and the Middle East region. I helped build brands for a wide range of successful companies from IT and software consultancies to the finance industry, tourism, and retail.