Community members on DAO1 are required to meet a minimum balance threshold, which in turn initiates the authentication of transactions and allows staking rewards to be paid. Once the expected entry amount is available, the DAO1 node initiates the deposit as a stake in the network. Community members can appropriate various approved cryptocurrencies for staking on the DAO1 platform. However, those who use the DAO1 token have the entitlement to receive the highest rewards.
A key consideration is that the possibility of a node being selected to produce the next block is comparative to the funds staked. Whenever a node generates a block, the staker/validator receives a reward in form of the DAO1 native token. The staking works in such that the validators stand to forfeit a portion of their stake in case they attempt to attack the network. This mechanism keeps out malicious actors and incentivizes good behavior on the platform.
DAO1 staking is effortless to set up by anyone who can follow simple instructions. The entire process revolves around a great user experience and does not require expert knowledge. Validators can withdraw rewarded tokens anytime they want as well as staked ones. One point to note is that nominal charges (entry & exit fees) and gas fees will apply, but we believe these costs will be lower moving forward. The layer 2 token swap integration on Matic is at the heart of our staking proposition and the initial lock-up period on DAO1 is set to 72 hours by the protocol.
Staking rewards and APY percentage returns will be announced via our Medium page and we will update the website accordingly.