Understanding Terp Network: How Staking Secures The Network

What does it mean when someone says they staked their crypto?

If you are new to web-3, crypto staking probably sounds like some super fancy activity reserved for high finance traders only. But in reality, its actually pretty simple.

Staking is when you lock up your crypto assets, meaning you cant trade them, but in exchange you earn rewards & contribute to the security & efficiency of the network.

But how does this work? Lets break it down..

Terp uses proof of stake technology, a decentralized way to ensure all transactions are verified. Blockchain validators validate transactions & add new blocks to the chain, but must have staked a certain amount of crypto in order to do so.

Think of it like having skin in the game.

If validators act maliciously and approve fraudulent transactions, their staked crypto gets slashed. But if they act honestly, they can propose new blocks, earn rewards, and participate in governance. This is a major component of how Terp Network is able to minimize risk for our culture in terms of any form of network attack.

Now you may be thinking — how can someone who is not a validator still stake their crypto and earn rewards?

Its called delegating !

ANY holder of the network staking token can participate in staking by delegating their their assets to a validator node. The validator node operator (validator node) will do all of the heavy lifting to validate transactions.

You need to be aware that staking is risky. If prices shift, your assets cant be transferred right away. Also, if you staking provider doesn't do their job, you may not get your rewards.

Anyone with TERP tokens can delegate to a validator at the following staking UI, built by the awesome team at cosmology: https://stake.terp.network

If you don’t have Terp Tokens, no sweat! There is no presale active or planned, and more proposed airdrop activities upcoming to continue spreading the love.

Health is Wealth

It is common practice for maintaining a healthy network in the eyes of decentralization to delegate tokens outside the top 20% of active network validators. This ensures that the validation of the network does not become too centralized to the health of a centralized group of validators.

None of this is financial advice, there are plenty of public resources to Do Your Own Further Research on staking & Proof of Stake models!

Come say high in the discord! https://discord.gg/9mFZc4XEDA