BlockBurn $BURN sneap peak App was released to the Community and it's approaching it's launch in about some weeks to come. But What is Stake?!
What is Token staking?
Token staking gives currency holders some decision power on the network. By staking Tokens, you gain the ability to vote and generate an income. This is quite similar to how someone would receive interest for holding money in a bank account or giving it to the bank to invest.
Why Staking Tokens is Important To the asset And what Benefits come from:
It increases the utility of the token.
It incentivizes users to hold a certain amount of tokens as balance if they want to get involved in the platform and perform value-adding activity.
There is value in holding the tokens.
It allows platforms to combat the velocity problem with every transaction.
If circulation of tokens is increased With higher velocity, the token price is pressured to fall, because there is an inverse relation between price and velocity.
With the staking, not all tokens will be available for transactions.
The Staked Tokens are out of circulation with every transaction,for each transaction, the circulation of tokens is increased and as well the staked tokens. This reduces velocity since due to staking, some tokens are held, while some tokens are being transacted.
With the inverse relation between price and velocity, this will reduce velocity due to the staking and prevent the price to fall.
It incentivizes users to behave properly and correctly when carrying out certain actions on the platform in order to avoid losing their staked tokens.In cases where the participants staked tokens are burned for inappropriate behavior, staking indirectly affects the price of the token.
The act of burning tokens reduces the supply of tokens, and assuming that demand is constant or increasing, the price of token will increase.
In return the staking feature gives the members holders a piece of owning a percentage of the platform and doing that they will be rewarded for doing that:
✓Earn dividends that can be paid weekly or monthly
✓Access to exclusive features of the platform.
✓Participate in value creating activities on the platform.
✓Receive status/recognition on the platform.
✓Stake your tokens will help secure the network platform and keep the price up of the asset.
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