What do crypto loans, virtual cards, and referral programs have in common? That’s right, they all are different ways of wallet monetization! But what about staking? It’s more than just a DeFi function. With staking becoming a must-have feature in many crypto wallets, users are now looking for easy, intuitive ways to participate in this growing activity.
At the same time, for platforms, staking is not just a trend – it’s a powerful tool to increase user loyalty, engagement, and monetization opportunities. In this article, we will break down how staking works in wallets, explore its benefits and risks, and examine how it ties into the future of wallet monetization.
Staking: simpler than you think
As staking gains its popularity, for sure, you need to be familiar with all the basics. Don’t worry, we will get you through the main topics.
What is staking?
In simple words, staking is a way to earn some rewards (usually, a percentage of the tokens staked) for locking your tokens in a blockchain network to support its operations. It’s a safe and simple way to grow your cryptocurrency while holding it.
Additional fact: staking is commonly associated with Proof-of-Stake (PoS) or Delegated Proof-of-Stake (DPoS) blockchains, like as Polkadot, Ethereum, Solana, TRON, etc.
Types of staking
Even though this mechanism is relatively new, there are various specialized types of staking already exist, including:
- Solo staking: this entails operating a validator network by utilizing its own hardware and software
- Pool staking: users can group and combine their assets together to increase their chances of earning rewards from staking
- Liquid staking: the reward for participating in this type of staking is representative tokens, which are later can be traded or used, providing liquidity to the crypto staker
- Delegate staking: instead of running a complicated validator node, users “delegate” (or permit to) someone else, usually a professional validator, to stake their crypto, the rewards are shared among validators and delegators
How staking works in crypto wallets
Most crypto wallets integrate staking features by acting as intermediaries between the user and the network or provider. Instead of requiring users to run their own validator nodes, wallets allow users to delegate their tokens to validators within one app.
Interested in integrating staking and looking for the best provider? Or maybe you want to integrate your own network for staking? Don’t worry – we got you! There are no boundaries for the EvercodeLab team to boost your wallet. Contact us today to learn more!
Key features of wallet-based staking include:
- Network security: staking helps validate transactions and maintain the security of blockchain networks
- User’s involvement: users lock up their crypto in a wallet, which allows them to participate in network activities like validating transactions or voting on governance decisions
- Rewards: users earn rewards in the form of additional crypto for staking their coins. Rewards are typically distributed periodically based on network rules and performance
- Benefits: staking provides a way to get passive income from crypto holdings, potentially increasing the value of the staked assets over time
What are the benefits of staking for the platform?
Of course, as a monetizing tool for your product, integration of crypto staking into the wallet offers multiple advantages:
- Increased user retention: staking encourages users to keep their assets within the wallet, reducing churn and increasing long-term engagement
- Additional profit: by implementing the provider’s solution, wallets can earn additional revenue from the commission or as a bonus % from the provider
- Product differentiation: by providing staking, wallets become more than just storage or swap solutions – they transform into wealth-building tools, attracting new crypto users
Stay streamlined with the crypto market trends: make your product more attractive and competitive, while earning even more – EvercodeLab is ready to integrate staking or any other monetizing tool into your wallet! Book a meeting now to learn more about how to upgrade your crypto wallet.
As the blockchain industry grows and develops really fast, future monetization strategies for the crypto wallets will likely build on staking and premium models. For instance, on the hype of multi-chain support, there is a potential trend in forming cross-chain staking, when wallets will allow users to stake assets across multiple chains from a single interface.
Right now, wallets are more focused on premium features and membership opportunities. Some platforms encourage users to stake more by offering various levels of rewards and benefits depending on the amount they stake. These rewards and benefits may include: lower trading fees, airdrops, and even bonuses based on membership tier.
Are There Any Risks in Staking?
While staking can offer attractive returns, it also comes with certain risks. Here we can mention volatility, partial confiscation, or platform risk. Despite these issues, many wallets mitigate potential downsides through features like validator quality control, clear communication of lock-up periods, and robust security protocols.
Conclusion
Staking is transforming crypto wallets into powerful passive income tools, offering users a simple way to grow their digital assets while enhancing platform engagement and monetization. When combined with premium features and subscription models, staking becomes a cornerstone strategy for wallet platforms seeking to increase user holdings and long-term revenue.
Contact EvercodeLab today to upgrade your wallet and make it more profitable and in demand in the market! Our white-label solutions will help you to integrate the staking feature seamlessly into your wallet or find another monetizing tool that will perfectly fit your needs.