Earn Yield by Staking $HSY on the NFThistory Platform

Hello NFThistorians, we hope you’re well.

In our previous article, we took a look at what’s next for NFThistory. We mentioned that we would enable our users to begin staking HSY in March.

How exciting is that?

So today, we’ll take a closer look at what defi staking is and how it will work on the NFThistory platform. But first, we’ll recap our tokenomics.

TL;DR

  • You can stake HSY tokens to earn a great yield. More details on APY will come soon!
  • 50% of the treasury will be shared among the token stakers every month.
  • We’ll burn 25% of the tokens in our treasury to decrease the circulating supply.
  • The token flow shows how stakers contribute to the network and get rewards.

NFThistory Tokenomics

Our token’s ticker is HSY — short for “History”. It’s a BEP-20 token, as our project is based on the Binance Smart chain.

We’ll have a total supply of 1,000,000,000 HSY (1 billion). Here’s how the supply will be divided:

  • 31% or 310 million HSY will be available for sale (3–12 months vesting). By the way, our sale is currently live. Check out this article to learn how to participate.
  • 35% or 350 million HSY will be reserved for marketing and community incentives (1-month lockup, then 24 months vesting)
  • 12% or 120 million HSY will belong to the team (12 months lockup, then 12 months vesting)
  • 5% or 50 million HSY will go to advisors and partners (3 months lockup, then 12 months vesting)
  • 12% or 120 million HSY will be stored in the treasury (1 months lockup, then 48 months vesting)
  • 5% or 50 million HSY will be reserved for token liquidity

What You Should Know About Staking

From a financial point of view, staking is a way to generate passive income. It’s like earning interest.

For instance, a token holder locks their tokens for a given period on a platform. In exchange for providing the platform liquidity, the holder is rewarded with more of that token.

But how does that actually work?

To understand it, let’s discuss cryptography.

If you’ve heard of mining for cryptocurrencies, which is based on proof of work, then think of staking as that passive income-generation method. You get rewarded for helping the network run.

But staking is a lot different than mining in how it functions. Staking is done on proof of stake networks (hence the term staking).

In short, a holder that locks more of their tokens and for a longer time is more likely to validate a new block on the blockchain and be rewarded for that validation. In addition to financial rewards, the staker gets rewarded in another way: By helping the network become more secure and efficient.

Staking also doesn’t require expensive equipment, like Bitcoin or Ethereum mining do, which are based on proof of work (though Ethereum will also transition into a proof of stake consensus model).

For more reading on staking, we recommend this article from Binance Academy.

Why Stake HSY?

There are other passive income generating methods in crypto besides staking (e.g. yield farming and liquidity providing). But that’s a topic for another day.

Even so, why would someone pick staking over something else?

  1. Staking is very easy. You don’t need expensive equipment. All you need is a wallet that’s compatible with the platform where you’ll be staking.
  2. You get rewarded for validating new blocks, giving you a passive income stream.
  3. The value of the token you stake could rise, which could multiply your gains.

* The way the value of the token could rise is through it being useful to the users. At NFThistory, we’ve worked hard to ensure the utility of the HSY token, as the token is required to bid for our historic date NFTs.

Moreover, staking is generally (but not always) lower risk than trading the market or providing liquidity.

For example, farming liquidity provider (LP) tokens exposes you to what’s called impermanent loss. You can read about impermanent loss in this article, but the gist of it is that when you provide liquidity with a coin pair, there’s a chance that the value of the tokens could change in the way that you would’ve made more had you just HODLed. And the more you’ve provided, the greater the unrealized gains would be.

Staking simply doesn’t involve impermanent loss, as it only deals with one token.

However, staking does involve some risks:

  • The value of the token you stake could drop.
  • You typically need to lock your tokens for a fixed amount of time, leaving you unable to use those assets for other purposes.
  • There could be un-staking periods.

Now, we’ve covered how staking works in general. On the NFThistory platform, our staking feature goes beyond just staking to earn yield. NFThistory’s staking mechanism has some unique functions designed to strengthen the HSY token and make our project more financially sustainable.

  • On our platform, 50% of the treasury will be shared among the token stakers every month. As mentioned in the HSY flowchart below, the treasury will be filled by a monthly unlocking of 2% of the total treasury reserve supply.
  • Each month, we’ll burn 25% of the tokens in our treasury to decrease the circulating supply. This should support the health of the HSY token.

We hope the value of our token will not only increase through its usefulness, but also through a monthly token burn and smart unlocking periods. All this could help make the yield from staking ever more rewarding.

*This article is for informational purposes only, and should not be considered financial advice. Understand that rewards vary based on network, overall participation, and other factors. Do your research and consult with a financial advisor before deciding to stake tokens.

About NFThistory

NFThistory is the world’s first platform for acquiring and transferring ownership of historic moments using blockchain. From the landing on the moon to the birth of Bitcoin, you can own, buy and sell any date and moment in human history on NFThistory’s platform.

If you wish to stay up to date with our project you can visit our:

Website | Twitter | Telegram | Medium

Image Source: https://unsplash.com/photos/0AgtPoAARtE

World’s first platform for acquiring and transferring ownership of historic moments using blockchain

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NFThistory

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World’s first platform for acquiring and transferring ownership of historic moments using blockchain

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