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How to make a passive income by Hodling DGTX?

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Edited by Bob Flores, Tuesday, 8 Sep 2020, 11:46

Last month, we published two blog posts explaining some key elements of our plans to drive demand for the DGTX token, including launching a brand new stablecoin, DUSD. In this third part, we introduce DGTX Staking, enabling loyal holders of DGTX tokens to earn rewards for staking them.


 


There is plenty to look forward to, and we can’t wait to unveil all the details of our plans. However, for today, the focus is on the next step in driving demand for DGTX – staking.


 


What is Staking?


The concept of staking tokens emerged from the Proof of Stake consensus. The general idea is that those who are validating blocks in a blockchain network need to have some “skin in the game.” So they put down a certain value of network tokens as a stake, for which they earn validator rewards. The financial investment of their stake is designed to ensure that they act in the interests of the network.


 


However, at this point in the evolution of crypto, staking is no longer limited to those participating in block validation, and it’s become particularly popular within the DeFi space. This is because staking offers another benefit. Staked tokens restrict circulating supply and, in turn, help to drive demand, as users want to participate in staking themselves so they can be eligible for rewards. Therefore, the simple laws of economics mean that staking offers a way of driving value for tokens.


 


With this in mind, we’re pleased to announce we will be launching a DGTX Staking program. It will allow anyone to stake their DGTX tokens and earn DUSD rewards for doing so. The DGTX Staking program is designed to ensure that our investors receive optimal benefits for their loyalty as long-term holders of DGTX.


 


Introducing the DGTX Staking Program


The full details of the DGTX Staking program are shown below. However, we know that many of our community prefer things short and sweet. So the overall concept can be summarized quite simply as follows.


 


Holders of DGTX will be given the option within the exchange interface to stake their tokens in return for daily rewards, that will be funded by system gains from liquidations. They can decide how much they want to stake, and once they do so, their DGTX tokens will be held on the exchange’s staking wallets until they decide to unstake them.


 


Staking rewards will be distributed daily in proportion to the number of tokens staked. Rewards will be allocated in DUSD, as the new native currency of the DFE.


 


We believe that the introduction of the DGTX Staking program will directly benefit DGTX and its holders. It will incentivize more people to hold DGTX so they can participate in staking and earn rewards. At the same time, staking will reduce the circulating supply, helping to drive the value of the token.


 


Adam has been working together with members of the Digitex community in preparing the DGTX Staking program in detail. Big thanks to our very own Cryptrader, who has been instrumental in helping us flesh out the concepts of staking and stablecoins into workable proposals for development.


 


For those of you who like digging into the details, keep reading for more information. However, as a final note, we’d like to add that we reserve the right to make changes to the terms outlined here as we work through the implementation plan with the development team this week. Nevertheless, we believe we have a viable concept and will be including the introduction of staking into the Digitex roadmap, which will be released very soon. So, make sure you stay tuned for more updates!


 


Preliminary Terms of DGTX Staking


1. System Gains Distribution


The system gains obtained from liquidations can be distributed proportionally to the amount the DGTX holder has staked in relation to the total supply of DGTX staked.


 


The equation for system gains staking reward could be something like this:


 


Daily Reward = Daily System Gains*Holder’s DGTX staked/Supply of DGTX staked


 


Example: Bob has 100k DGTX staked, and the total supply of DGTX staked is 200m. The daily System Gains that day from liquidations is 100k DUSD.


 


So that day’s reward for Bob would be:


 


Daily Reward = 100,000 DUSD* (100,000 DGTX/ 200,000,000 DGTX)


 


Daily Reward = 50 DUSD


 


Please note that the System Gains will not necessarily be 100% allocated to daily staking rewards. This will remain as a variable that can be changed so we can distribute system gains as we see fit between staking rewards, insurance fund, and giving back to traders through market making losses. However, rewards will be sufficient to act as an incentive to keep staking DGTX.


Read more here:

https://digitexfutures.com/blog/introducing-dgtx-staking-hodl-and-earn-rewards/?utm_source=lb&utm_medium=cpc&utm_campaign=staking&utm_content=

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