Token staking is becoming an increasingly popular way not only to earn passive income but also to increase chances of participating in airdrops. In this article, we will explore the benefits of staking and its impact on reward acquisition.
What is Staking?
Staking is the process of locking up cryptocurrency in a blockchain network to help secure it and validate transactions. In return for staking, users earn additional tokens. This process is often associated with proof-of-stake (PoS) or delegated proof-of-stake (DPoS) networks. For example, staking tokens on networks like Ethereum 2.0, Cardano, Polkadot, or Cosmos allows users to receive rewards.
How Staking Increases Airdrop Eligibility
Many crypto projects are now considering staking as a key criterion for airdrop eligibility. By staking tokens within a particular network, users demonstrate their commitment to the project and its ecosystem, making them more attractive candidates for token distributions. Some airdrops require participants to meet specific criteria, such as holding a minimum amount of tokens or staking them for a set period.
Examples of Projects Rewarding Stakers with Airdrops
Several blockchain projects have adopted staking as a way to reward users with exclusive airdrops. Projects like Cosmos regularly reward stakers with tokens from new projects launched within its ecosystem by staking ATOM. Polkadot and its experimental network Kusama are known for their parachain slot auctions, while Terra offers airdrops to LUNA stakers from projects building on their platform.
Staking tokens isn't just a way to earn passive income; it's a powerful strategy to boost your airdrop eligibility. With this practice, users can demonstrate their commitment to a project, gaining access to exclusive token distributions.
