The developers of IOTA are announcing the start of IOTA staking.
With the release of Firefly 1.3.0, the staking functionality is “fully” integrated and IOTA holders can begin staking their IOTAs “in return for SMR, the native token of the Shimmer network and ASMB, the native token of the Assembly network.”
(Note: Check here for a detailed overview of the IOTA, Shimmer, and Assembly Networks.)
Both tokens will be distributed “according to their previously announced distribution rates and schedules, available on the Shimmer and Assembly websites.”
IOTA token stakers may choose to be “rewarded in either SMR tokens, ASMB tokens, or both at the same time with no lock-ups, additional cost or penalties,” the announcement explained.
In order to offer a “generous” timeframe, in which all staking participants are able to acquire or move their tokens to the IOTA Firefly wallet, staking will “start with a seven-day pre-staking period today, Tuesday, 21st of December, at 3:00 pm CET.”
During the seven-day pre-staking period, stakers can “move their funds from exchanges to Firefly and mark them for staking in their wallet.”
Stakers will receive their staking rewards “starting from the 28th of December at 3:00 pm CET for the following 90 days.” Rewarded SMR and ASMB tokens will “become transferable with the launch of each respective network in 2022,” the update confirmed.
As clarified in the update:
“Not only does IOTA staking add another layer of utility to the IOTA token but also marks the first important milestone for both the Shimmer and Assembly networks. Both tokens form the backbones of their respective networks and are designed to reward the community and empower fully self-governed ecosystems.”
Stake IOTA and receive SMR tokens
SMR is the native token of the Shimmer network and will be its “economic foundation, adding to its security and facilitating transactions and interactions within the emerging ecosystem on the staging network,” the update noted while adding that the token will “enable upcoming DeFi, NFT, DAO and other dApps.”
Every staked MIOTA will “generate 1 SMR for its staker every 10 seconds for up to 90 days and each staked wallet must reach a minimum amount of 10,000,000 SMR for the airdrop to be received.”
The announcement also mentioned that the maximum staking duration is 90 days. Staking takes “the form of liquid staking, where users can easily unstake or transfer their tokens at any given time – there is no lockup of any kind.”
To calculate your potential staking rewards, you “can use the rewards calculator on the Shimmer website here.”
Stake IOTA and receive ASMB tokens
ASMB is the native token of the Assembly network. It will “ensure the security of the network and underpin Assembly’s governance mechanisms once the network is launched.”
As noted in the announcement, the entire token supply of 100 billion tokens will be distributed over the “course of five years with various vesting and lock-up schedules.”
20% of the supply will be “distributed to IOTA stakers over a two-year period, making IOTA holders the largest stakeholders in the Assembly ecosystem.”
For each MIOTA staked, IOTA stakers will “receive 0.000004 ASMB every 10 seconds (or four microASMB) for up to 90 days.” Each staked wallet must “reach a minimum amount of 1.0 ASMB (1,000,000 microASMB) for the airdrop to be received.”
As confirmed in the update:
“The first staking period will commence with a 90-day staking period in which up to 8% of the entire token supply will be distributed to IOTA token stakers, depending on the staking participation rate. The remainder will be distributed to IOTA token stakers after the Tokenization and Smart Contract upgrades on the IOTA mainnet, ending after a total staking period of 24 months.”
In addition, once the Assembly mainnet has launched, users will be able to “stake their ASMB tokens in order to secure the network and be rewarded pro-rata through an anticipated 8% yearly ASMB inflation.”
To determine your potential staking rewards for the upcoming staking event, you may use the rewards calculator on the Assembly website here.
Firefly wallet staking instructions
The update further clarified staking IOTA will “only be possible in IOTA’s Firefly wallet and is not supported by any third party.”
In order to start staking (after Tuesday, the 21st of December at 3PM CET), make sure that you check these updates from the IOTA developers.
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