The growing ecosystem of Fantom ($FTM) makes its staking service more accessible. As of March 2023, Fantom's staking ratio hit 50%, indicating active participation of the FTM holders in running validator nodes.
Let's focus on the top 10 Fantom validators for June 2023 and explore how to pick a Fantom validator for staking your FTM tokens.
Fantom Staking & Validators
Fantom's staking rewards can be earned through regular staking, liquid staking, and becoming a node operator (validator).
The purpose of staking $FTM tokens is to bolster the network's security and generate incentives. Staking Fantom can be conductd directly on your personal devices (smartphones or computers) with a connected Fantom wallet.
Fluid rewards allow stakeholders to opt for various lock-up periods and corresponding higher returns, reaching an impressive 13% annual percentage yield (APY) for a year-long lock-up. Alternatively, individuals can choose the path of liquidity by staking without any lock-up, still earning a respectable 4% APY.
Curious about the estimated staking rewards? Check out the project's official website.
What sets Fantom apart is its inclusivity, as there is no minimum stake requirement. Even with a single FTM token, investors can actively participate and enjoy the rewards of their staking efforts. Furthermore, users are allowed to select staking durations of up to 12 months without any mandatory lock-up restrictions, empowering them to adapt their strategy as needed.
Beyond the allure of rewards, staking plays a pivotal role in ensuring the network's security. By engaging in this process, investors actively contribute to the robustness of the Fantom network while reaping the benefits of their involvement.
What is Fantom Liquid Staking?
Fantom offers a compelling feature known as liquid staking for those seeking to unlock additional value. This innovative mechanism enables users to tap into the value of their staked FTM tokens by minting sFTM tokens at a 1:1 ratio.
With their freshly minted sFTM tokens in hand, investors can utilize them as collateral within the Fantom Finance ecosystem, an all-encompassing DeFi platform offering many financial opportunities.
It is worth noting that Fantom distinguishes itself by not charging any fees during the process of minting and redeeming sFTM tokens. This feeless approach resonates with investors, adding to the overall appeal of the platform.
To further fortify the network, Fantom relies on the contributions of validator nodes. These essential players operate full nodes, participate in the consensus process, enhance the network's security, and generate new blocks.
A minimum stake of 500,000 FTM tokens is required to become a validator, incentivizing stakeholders to actively participate in securing the network. Validators enjoy staking rewards and a 15% fee share for delegators who contribute their tokens to the validator's operations.
How to Choose a Fantom Validator
When choosing Fantom validators for staking, here are some valuable tips to consider:
- Active community engagement: Look for validators that actively participate in community channels like Discord, Twitter, or Telegram groups. Engaged owners who are accessible and responsive can provide support and keep you informed about any developments or issues.
- Transparency: Prefer validators hosted by identifiable individuals rather than anonymous entities. Transparency and accountability are essential, ensuring you have recourse and can establish trust in case of any concerns or problems.
- Self-stake ratio: Assess the self-stake of the validator. A higher self-stake indicates that the owner has more at stake and is thus more incentivized to act in the network's best interests. This can be an important indicator of the validator's commitment to the ecosystem's stability.
- Lockup period: Consider the lockup period that suits your desired annual percentage rate (APR). Longer lockup periods may offer higher rewards, but evaluating the associated risks is crucial, especially when self-staking is crucial. Ensure that the lockup duration aligns with your investment goals and risk tolerance.
Top 10 Fantom Validators - June 2023
Here is our list of the top 10 Fantom validators for June 2023.
- Self-staked: The amount of FTM tokens that a validator has been staked himself. This metric reflects the validator's committment to the network's stability.
- Delegated: The amount of FTM tokens that delegators have allocated to a specific validator.
- Total staked: The total amount of Fantom tokens staked from both the validator and delegators.
- Downtime: The period during which a validator goes offline. Short downtime isn't neccessary a problem while extended downtime could result in slashing risk.
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Frequently Asked Questions
Where to stake Fantom tokens?
You can stake Fantom tokens directly on Fantom wallet or on centralized platforms. While staking on those platforms is easier, you take less control over your staked cryptocurrencies.
How much is Fantom staking?
Fantom's staking commisision is fixed at 6%. This percentage will be distributed to Fantom's validators.