Staking is a means to earn additional rewards. Also, it ensures the sustainability of a blockchain. There are so many benefits the crypto space offers besides the way it decentralizes everything and ensures borderless payments. The crypto/blockchain space also has infinite ways of rewarding users devoted to a particular cryptocurrency. In particular, the AXS token is essential for governance and AXS staking looks like a good way to earn.
Today’s Axie Infinity price is $21.90 with a 24-hour trading volume of $347,712,891. We update our AXS to USD price in real-time. Axie Infinity is up 3.41% in the last 24 hours. The current CoinMarketCap ranking is #48, with a live market cap of $1,333,749,709. It has a circulating supply of 60,907,500 AXS coins and a max. supply of 270,000,000 AXS coins.
What is AXS?
One blockchain in the crypto space that aims to reward its loyal users is Axie Infinity. This blockchain network has continued to improve its infrastructure through the years and now fully supports staking through its governance token known as AXS. Having AXS earns you voting rights within the Axie infinity ecosystem and in the future, a direction in which the money in the treasury is to be spent.
What is a staking reward?
Some digital currencies offer staking rewards. However, these rewards incentivize loyal users within the cryptocurrency’s ecosystem. You pledge your coins to a specific blockchain protocol when you stake a particular cryptocurrency. You can become a validator to confirm blocks of transactions on the blockchain protocol depending on how many tokens you have pledged.
New crypto tokens are minted and distributed to stakers in the form of staking rewards on the blockchain protocol when a new block is added.
Sometimes, these rewards come in the same type of crypto coin that was used for staking. It is essential to note that when you stake crypto coins on a blockchain protocol, you still own them, and if you want to trade them, you can. Also, you can even unstake them if you want to, at any point in time.
Axie Infinity blockchain protocol also allows its investors to stake their AXS tokens. Axie Infinity rewards its users through staking by earning more AXS tokens on the platform. Also, users can vote and have a say in the governance of the blockchain protocol, which holds billions of assets.
Furthermore, the AXS staking system has grown, and it is devoted to offering more rewards to participants.
How AXS staking works
Think of staking in Axie Infinity as having shares in the blockchain protocol or the Axie Infinity game universe. You can earn more AXS tokens just by staking it or winning the different quests in the game. You can also earn AXS tokens by buying them directly from crypto exchanges worldwide.
Furthermore, players of the Axie Infinity game universe can spend their AXS tokens in the game and may earn more AXS tokens in return.
The returns earned in the Axie Infinity game universe are sent into the community treasury. Members of the community treasury govern the game universe in return.
Additionally, holders of AXS tokens can stake their rewards to govern or have a say over the community treasury.
The community treasury, in turn, incentivizes the AXS holders by giving them voting rights and earn AXS rewards.
How to stake AXS
Here’s how to start staking AXS.
- Ronin wallet. You can download Ronin from here, and open one just like with Metamask.
- AXS tokens. You can easily buy them on Binance, KuCoin, FTX or any other exchange.
Step 2. On the AXS Staking Dashboard, click on the ‘Connect Ronin Wallet’ at the top right to connect your Ronin wallet. Enter the public address of your Ronin Wallet, and once it is verified, the wallet is successfully connected.
Step 3: On the AXS Staking Dashboard, the amount of AXS present in your Ronin wallet will be displayed, and the balance of your AXS tokens currently on stake.
Step 4: Click on ‘Stake’ which will open a pop-up where you will need to enter how many tokens you want to stake.
With these steps, you would have been able to stake your AXS tokens, and you will be eligible for voting rights in the Axie Infinity ecosystem.
There is no specific day when the AXS staking will last, and the platform hasn’t specified any date. It is worth noting that the AXS staking might last forever, but with time, the rewards from staking your AXS will come down.
How much reward will you get for staking AXS?
The reward for staking depends on how the number of staked tokens in the blockchain. The more tokens you have staked, the more your rewards will be.
Furthermore, the platform also offers extra rewards for members who stake for a minimum fixed period, such as three months, six months, and twelve months. Learn more: Staking – AXS Staking Guide (gitbook.io)
Previously, the figures exceeded 400%, but now the annual APR has stabilized at around 89%. Considering the possibility of withdrawing and redepositing the funds including the interest earned, creating compound interest, the APY can easily exceed 200%.
This is interesting that in the AXS ecosystem, it is possible to use the restake command, which automatically withdraws and deposits funds including interest.
To be clear, if we have deposited 10 AXS and accrued 1 AXS of interest, by clicking on restake, we are going to stake 11 AXS, getting 89% APR not on 10, but on 11. In the long run, we understand the potential of staking AXS.
In the example, we have a wallet that deposited 2 AXS, and in about 90 days got almost 1 AXS. In counter value, we are talking about $100 deposited and $50 earned, considering the current price of the token.
You can use a calculator to help you decide the terms of staking.
Is it safe to stake AXS?
Yes, it is very safe to stake AXS. However, the value of AXS has been consistent over time, and there has been a steady growth in the number of players on the platform (also because, as of now, it is the very few play-to-earn crypto games available worldwide). Like the risk of trading with any other cryptocurrency, it has its own risk. So, stake only that amount of AXS tokens, you would be okay to lose entirely in the worst case.
How to collect staking rewards
With your AXS tokens staked, you will accrue rewards over time. The amount depends both on the total amount you have staked and the total AXS staked worldwide. Hence, it’s beneficial for everyone who is staking to have a lot of AXS tokens at stake. To collect rewards:
- You will see two options: Re-Stake or Collect. Re-Staking will allow you to add your rewards to your stake, further increasing your future potential rewards. Collecting will put your rewards straight into your Ronin wallet.
- Click either Re-Stake or Collect.
- A pop-up window will appear with a confirm button to verify your decision.
- After clicking confirm, a Ronin pop-up will appear to verify the transaction.
- If you chose Re-Stake, your rewards will now be added to your Stake. If you chose to collect, the rewards will then reflect on your Ronin Wallet. In either case, your rewards will be reset.
Note that you can only claim or re-stake the full amount of available rewards. Claiming or re-staking will always clear your rewards back to zero.
When to stake AXS
While it’s encouraged for everyone to stake their AXS for the long-term, not touching the currency for long periods of time, there are optimal times when to stake AXS if you’re the day trading type. Simply put, it’s best to stake AXS when its price is low, and then withdraw when the price is high. Of course, it will be in your best interest to always leave behind a fixed amount of AXS whenever possible in case the price continues to go up. This will ensure that you will not miss out on spikes that may happen in the near future. This value may depend entirely on you, but some investors only withdraw their earnings from their stakes, leaving their initial AXS stake untouched in general.
For more Axie Infinity guides, check out our Axie Infinity guides tag.
Benefits of staking AXS
- Rewards will accrue over time, which will then allow the user to earn more AXS tokens.
- Staking will also give users part-ownership of the game, as well as voting rights on how the game’s community treasury will be used in the future.
- You will help stabilize the network by staking your AXS in your wallet for future rewards.
- Staking is also known for its high level of security, given the 51% vulnerability to attacks due to the fact that network members must compete with each other and maintain a certain level of coins in their wallets.
- Staking pools offer earning yields in addition to the capital gains earned through token value appreciation. One can invest in a stake pool with a fraction of the number of tokens required to become a validator on a PoS blockchain, while the staking pool rewards users on a daily, weekly or quarterly basis, depending on the cryptocurrency being staked.
Risks in staking AXS
- Although staking is more secure than most other processes of earning, it’s not 100% safe conceptually as you lose control of your crypto for as many days/months/years you’ve tied it up. If there are better ways of earning that have become available, your locked-up crypto is out of the running.
- Due to the high volatility of your asset, you might lose its value if the price drops when it’s locked. So, the price before lockup could be higher and this price is not the final value of your crypto, but what it has become after the lockup.
Staking allows you to earn passive income. AXS staking is a lucrative way for you to earn more AXS tokens. How often you need to stake depends on risk tolerance. After staking your AXS, please come back regularly to claim/restake rewards for the compounding effect.
FAQs about AXS
Who is behind the Axie Infinity team?
Axie Infinity was created in 2018 by Sky Mavis — a technology-focused game developer with a team primarily based in Vietnam. Trung Nguyen and Aleksander Larsen co-founded it. Also, Trung Nguyen is the current CEO of the platform.