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How to Stake TFUEL 2022 (Complete Guide)

How To Stake TFUEL

Staking remains one of the most popular ways to earn passively in the crypto market. Today, more projects are allowing investors to stake their tokens. THETA, a cryptocurrency created to improve video gaming, has also done the same. This blockchain has also been created to increase efficiency and avoid bottlenecks by sharing bandwidth between nodes in P2P networks.

There are two native tokens on the Theta network: Theta Fuel (TFUEL), which allows participants in the Theta network to get rewarded for sharing their computing power, and THETA, which is the governance and staking token. 

This guide gives you step-by-step methods on how to stake TFUEL on the Theta network.

Today’s Theta Network price is $1.51 with a 24-hour trading volume of $62,062,885. Theta Network has been down 7.29% in the last 24 hours. The current CoinMarketCap ranking is #41, with a live market cap of $1,511,476,055. It has a circulating supply of 1,000,000,000 THETA coins and a max. supply of 1,000,000,000 THETA coins.

Also Read:

What is THETA (TFUEL)?

THETA (TFUEL) is the operational token of the Theta network. Users can use the TFUEL token to complete transactions, such as paying a relay node to offer you a video stream or for deploying or interacting with smart contracts. Relay nodes earn THETA (TFUEL) for every video stream they relay to other users on the network.

THETA protocol introduced TFUEL, the second currency of the network, to separate users of staking/governance (THETA) and operations/transactions (with THETA TFUEL) and to enhance protocol security. 

What is THETA Staking?

On the Theta network, staking is where you are incentivized to permit the processing power of your PC to function as a node. Before you can become a node in the Theta network, investors must lock some amount of their tokens. 

Furthermore, THETA uses a multi-layer or multi-BFT PoS consensus mechanism. The PoS mechanism requires token holders to become a node and validate the data transfer in the network. On the Theta network, there is an initial layer that comprises 20-30 Enterprise Validator Nodes. These Enterprise Validator Nodes are controlled by bigger organizations, creating blocks in the Theta blockchain network.  

The second layer comprises thousands of community-member Guardian Nodes. These Guardian Nodes are rewarded in TFUEL for accelerating the update and security of the blockchain.  To stake tokens in the THETA network, you must be delegated to either a Guardian Node (THETA) or an Elite Edge Node (TFUEL). Knowing that both nodes play an important role within the THETA decentralized network is essential.

In the staking process, the tokens stay in your official THETA wallet. In addition, if the node switches off, the tokens remain in your wallet and will only be controlled by whoever has access to the wallet. Note: Never enter your 12-word seed phrase, or Keystore file and password, anywhere except the official THETA wallet.

How to stake TFUEL

To stake TFUEL on the Theta network, the minimum amount of TFUEL you need to have is 10,001 TFUEL tokens. The following step is how to stake Theta TFUEL to Elite Edge Node.

Step 1: You can either delegate to a Thetaboard Edge Node or Elite Edge Node. If you plan on running your own Elite Edge Node on your PC, visit http://www.thetatoken.org/ and download the Edge Node Software. You can also stake through the Theta mobile wallet.

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If you plan on delegating to a Thetaboard Edge Node, please visit https://thetaboard.io/ and select:

  • TFUEL page for staking between 10,000 TFUEL and 100,000 TFUEL or. 
  • TFUEL VIP page for staking greater than 100,000 TFUEL. 
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Step 2: Open another window in your browser and visit https://www.thetatoken.org/ and click on the wallet on the top. 

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Step 3: Go to your Theta wallet and unlock it with your preferred method. 

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Please ensure you disconnect your internet if you want to enter your 12-word phrase key. Then click ‘Unlock Wallet.’ Reconnect afterward. This is to safeguard your password from online hacks.

Step 4: Click on Stakes 

 Once that is done, you need to click on ‘Stakes’ to start staking on your TFUEL tokens. 

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Step 5: Click on Deposit Stake 

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Once that is done, you need to know that your staking purpose should be ‘Edge Node.’

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Then click on Continue.

Step 6: If you are using Edge Node, open Edge Node and click on Stake TFUEL. You will need to deposit TFUEL. When you click on Stake TFUEL, you will see the Edge Node summary in letters and numbers. Highlight and copy the summary. 

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If you use the Thetaboard to stake, click on the TFUEL page. Then click on Summary, which has letters and numbers, and click on copy Summary 

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Step 7: Paste what you have copied (the Edge Node Summary).

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Then enter the amount of TFUEL to stake. It is important to note that the minimum amount of TFUEL tokens you can stake is 10,000, and the maximum is 500,000 TFUEL tokens. Always leave at least 1TFUEL in your wallet for transaction fees.

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Step 8: Once you have entered the amount to stake, click on Deposit Stake. Your wallet should notify you that you have successfully staked TFUEL tokens.

You can repeat the steps as required with other node summaries if you have more than 500,000 to stake. 

How much can you earn with staking THETA?

As with all staking, how much you earn depends on how much you contribute. 

Guardian Node and Elite Edge Node on the Theta network earn a proportion of TFUEL tokens generated annually. If you want to know how much TFUEL you will earn, depending on how much you stake, use the reward forecast calculator available on the Thetaboard Dashboard page to calculate your earnings. The page looks like this: 

How to Stake TFUEL 2022 (Complete Guide) 1

You need to note that the market value of your rewards depends on the relationship between the current price of TFUEL and THETA. Hence, this is something that you need to consider and monitor continually.

Benefits of TFUEL staking 

#1: Innovation: The THETA ecosystem is an exciting project with many innovations. With this, the ecosystem has lots of potential.

#2: Strong development team: The team behind THETA is highly professional. Steve Chen, YouTube’s co-founder, is the advisor to THETA.

#3: Tokenomics: The limited supply of THETA coins and the fact that they can’t be earned quickly makes the project more attractive. This also will positively affect TFUEL. 

#4: Developments and partnerships: The THETA ecosystem has many partnerships and developments. THETA’s strong partnership with Samsung VR has been a massive testament to the fact that THETA is credible. 

Risks of TFUEL staking 

#1: TFUEL inflation: There is a 5% annual increase in TFUEL, which might affect its price stability.

#2: Strong competition: They are many platforms in the streaming video niche. Big players dominate the niche, and THETA faces competition from such companies. 

#3: Low liquidity: The initial coin offering drove assets to a small list of investors.

#4: Weak returns: There are low returns when you stake THETA TFUEL. There are crypto projects that offer higher returns than THETA.

#5: Redundancy: We don’t think a project that involves cutting video streaming bandwidth needs a cryptocurrency. 

Is staking THETA safe?

Due to the reliance on the internet and smart contracts, no cryptocurrency is safe – but you can minimize the risks. Always back up your files and never reveal your private keys or wallet password to anyone. In addition, always encrypt your Theta wallet and keep a hard copy of your private keys in a safe place.

Conclusion

THETA ecosystem still has potential and use-cases which can affect its tokens THETA and TFUEL coin. It is possible to earn one or more TFUEL tokens daily in THETA. One downside of staking THETA cryptocurrency is that it may take up to 60 hours to unstake your tokens.

With enough investment, it is possible to make several thousands of dollars annually. If you want to earn passively from staking, then staking THETA (TFUEL)can be a good option.  But it is not enough to rely on for the average staker due to the small returns. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

FAQs

What fees does Thetaboard charge?

The Thetaboard fees for hosting THETA and TFUEL node is 3% of the rewards earned. With the current 8% APR for Tfuel, it means you get 7.76% APR and Thetaboard gets 0.24%.

Where do these rewards come from?

Theta Network uses inflation of TFUEL tokens to pay staking rewards. This inflation of Tfuel is set at 38 Tfuel per block for TFUEL staking and 48 TFUEL per block for Theta staking. The Theta Network aims for 6-second blocks, at which point the inflation rates correspond to roughly 4% (TFUEL staking rewards) and 5% (THETA staking rewards) inflation of the initial TFUEL supply of 5 billion. This inflation is planned to be offset by burning a portion of fees paid to use the Theta Network. Theta Labs has stated they aim to keep the total supply of TFUEL close to the initial 5 billion supply.

How do I deposit my stake on the Theta Network?

You can deposit your stake of THETA or TFUEL inside your official Theta Wallet.

Can I stake my TFUEL or Theta tokens from an exchange?

No, staking on the Theta Network is only possible using the tokens you have deposited into your official Theta wallet.

What is the current minimum number of tokens for staking?

For staking on the Theta Network, the minimum amounts are: 1000 Theta tokens, or
10,000 TFUEL tokens.

Alden Baldwin

Alden Baldwin

Journalist, Writer, Editor, Researcher, and Strategic Media Manager: With over 10 years of experience in the digital, print and public relations industries, he has been working with the mantra, Creativity, Quality and Punctuality. In his waning years promises to build a a self sustaining institute that provides free education. He is working towards funding his own startup. As a technical and language editor, he has worked with multiple top cryptocurrency publications such as DailyCoin, Inside Bitcoins, Urbanlink Magazine, Crypto Unit News and several others. He has edited over 50,000+ articles, journals, scripts, copies, sales campaign headlines, biographies, newsletters, cover letters, product descriptions, landing pages, business plans, SOPs, e-books, and several other kinds of content.

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