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How to stake Fantom (FTM)?

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How to stake Fantom (FTM)?

Fantom (FTM) is known for its speed and inexpensive layer-1 blockchain. Like other blockchains (for example, Solana (SOL) and Avalanche (AVAX)) that scale better than their counterpart, it has been dubbed an “Ethereum killer.” After raising $40 million in funds, Fantom launched its mainnet in December 2019. Since then, it has grown to become one of the most popular blockchains, sitting in the top 10 blockchains by total value locked (TVL) with $1.3 billion in TVL

Fantom’s high-throughput blockchain is an open-source smart contract platform. It is scalable and EVM-compatible, meaning you can deploy and run your Ethereum decentralized applications (DApps) on Fantom. Its structure enables the support for its decentralized finance (DeFi), other than managing digital assets and DApps.

The Fantom consensus mechanism is an adapted version of proof-of-stake, and it’s called Lachesis. It’s been designed to provide high-speed transactions, low fees and almost instant finality due to the aBFT algorithm. aBFT can scale to many nodes worldwide in a permissionless, open-source environment, offering a good level of decentralization.

The Fantom blockchain is powered by its native FTM token, and if you believe in the project and want to grow your FTM stack, you can consider staking Fantom to earn passive income.

What is Fantom staking?

Staking is making a blockchain more secure by locking up an investor’s digital assets for a certain amount of time. This security is provided by validators who validate transactions with their staked tokens, which becomes an economic incentive for them to behave according to the protocol’s rules.

By staking FTM, investors actively participate in securing its network while earning passive income, i.e., FTM rewards. Staking means that tokens will have to be locked up for some time; however, they will still be sitting in the owners’ wallets, only they can access and unlock their funds anytime.

How to stake FTM

The minimum stake amount to run a validator is 500,000 FTM to prevent Sybil attacks on its consensus mechanism. Sybil attacks are malicious attacks that involve falsifying multiple identities to gain an undue advantage within a network. As the validator’s required amount is relatively high, it becomes easier to delegate FTM to a validator.

 A few Fantom staking strategies can be used:

  1. Fluid staking: Investors can lock up their FTM token from two weeks to 365 days for better returns. The reward varies according to the length of the staking period; the longer FTMs are staked, the higher the reward rate. 
  2. Liquid staking: Investors can mint sFTM for improved ROI when liquid staking. They can also stake farmed tokens, participate in liquidity mining, farm LP rewards and more.
  3. Custodial staking: Investors can take FTM on a centralized exchange (CEX) like Binance or Coinbase. The staking reward is 1%.

To stake on Fantom, users can follow these simple steps:

  1. Have a minimum of 1 FTM to stake;
  2. Go to the Fantom staking page and click Stake your FTM;
    Stake Fantom
  3. You can log in with a compatible wallet, like MetaMask. You can open the wallet from your computer or your mobile device. You can create a new wallet or access an existing one using a mnemonic or seed phrase.
  4. Deposit your FTM by transferring them from an exchange or another wallet to your Fantom Opera wallet address.
  5. Click on “Staking.”
  6. Add a delegation by choosing a validator and an amount. 
  7. Select your lock-up period and confirm.

There are a few options when it comes to optimal Fantom wallets. The Fantom Opera network is a second-layer and EVM-compatible blockchain, meaning that you can use any wallet that works for Ethereum, such as MetaMask, the Coinbase Wallet or a cold wallet like Ledger. 

After creating an account on Fantom, you can also download your Fantom wallet (fwallet) by clicking on the “Create Wallet” button:

Fantom Wallet

Where to stake FTM?

Other than its native blockchain network, Fantom can be staked across many platforms, including decentralized exchanges (DEX) and custodial blockchains. Here we’ll look at the places to stake Fantom so you can decide which is the most suitable.

How to stake Fantom on Ledger

Staking through a hardware wallet like Ledger works through a smart contract interaction, like other transactions. It’s sufficient to stake from the Fantom fWallet by signing Fantom FTM Ledger Nano S application. Then, use the “Stake” menu item on your account.

How to stake Fantom on Coinbase

In September 2021, Fantom announced support for the Fantom network on the Coinbase Wallet. Coinbase Wallet users can access and use the Fantom network and engage with Fantom DApps. Users can connect their Coinbase Wallet account to their Fantom fWallet and conduct activities such as stake FTM and earn rewards.

How to stake Fantom on Binance

To stake FTM on Binance, you have to deposit a convenient amount on the exchange, then go to Binance Earn and pick the suitable product for you; usually, it’s a locked up period of 30, 60, or 120 days. You can choose a more extended staking period for higher returns up to 14%.

How to stake Fantom on Kucoin

Similarly to Binance, you must deposit your FTM token on Kucoin and go to Kucoin Earn. Then click “Subscribe” to pick the product that suits you better, based on rewards and the time you want to lock your assets.

Is it safe to stake FTM?

It is safe to stake FTM because the validator node cannot access your staked tokens; make sure not to lose your mnemonic phrase or private key. However, like in other proof-of-stake blockchains, you risk losing a fraction of your stake if the validator is not reputable and misbehaves. It’s safer to select reputable Fantom validators who always have active communities, websites and Twitter accounts.

How to stake other tokens on Fantom

Fantom provides a flexible and dynamic ecosystem enabling the staking of several DeFi tokens to earn passive income on your investment. To use any of the following systems to stake their native tokens, you need a MetaMask or any other wallet mentioned above connected to the Fantom Opera network. In this case, Fantom staking acts like a CEX, such as Binance, becoming a marketplace where non-native cryptocurrencies are traded. 

Here are some of the most popular tokens that are based and can be staked on Fantom:

  • Spookyswap is the biggest DEX on Fantom, with $777 million TVL and BOO being its native token, which can be bonded with FTM for maximum liquidity and to yield farm. To stake BOO, buy the tokens in an exchange or swap them in Spookyswap; connect your wallet to Fantom Opera to view your positions and start earning. 
  • BeethovenX is a community-driven DEX, an automated market maker (AMM) and a DeFi powerhouse. Governed by BEETS native token and living on the Fantom Opera and Optimism chain, it yields an APR of 31%. To stake Beets, after depositing some FTM, connect your wallet to Fantom Opera and follow the procedure to choose a validator and the locking time.
  • QiDao is an autonomous and community-governed protocol that sits on Fantom and allows you to borrow stablecoins with zero interest against your crypto assets used as collateral. Loans are paid and repaid in miTokens (stablecoin soft pegged to the USD). 
  • Scream is another decentralized lending protocol powered by Fantom, similar to platforms like Compound (COMP) and Aave (AAVE). Users who stake SCREAM tokens can earn around 58% APR, while for liquidity providers, the rewards can be as high as 82% APR.

How to run a Fantom node

Validators run full nodes and are a crucial part of the Fantom network. By running a full node, validators participate in the consensus to boost security and generate new blocks. There are some technical requirements and skills to be considered to run a Fantom full node, and it might be more suitable for a techie operator.

Following are the requirements necessary to run a Fantom full node:

  • Minimum requirement: 500,000 FTM
  • Maximum validator size: 15x the self-stake amount
  • Minimum hardware requirements: AWS EC2 m5.xlarge with four vCPUs (3.1 GHz) and at least 4.5 TB of Amazon EBS General Purpose SSD (gp2) storage (or equivalent).
  • Rewards: currently ~13% APY (Normal APY on self-stake + 15% of delegators’ rewards). APY varies based on staked %. For up-to-date APY, check the Fantom Foundation website.

A step-by-step guide to running a full-node

  1. Users can run a node on their hardware or use a cloud provider. One of the big cloud providers, e.g., Amazon AWS, is recommended.
  2. They can set up a non-root user. 
  3. Install the required building tools; install Go and then Opera.
  4. Register their Fantom validator node on-chain. To do this, users need to create a validator wallet that becomes the validator’s identity in the network, required to authenticate, sign messages, etc.
  5. Run their own node. To do this, they need to restart their node in validator mode, then close the Opera window by typing “exit.” Then they need to head back to the window where they started their node with the following command: 

(validator)$ nohup ./opera –genesis $NETWORK –nousb –validator.id ID –validator.pubkey 0xPubkey –validator.password /path/to/password &

Users can refer to Fantom’s instructions for full specifications and details on how to run a validator node. 

How much money can you make staking Fantom?

You can earn 5.01% if you choose the minimum lock-up period (14 days) and the minimum amount. The maximum APY is currently 15.31% for the maximum lock-up period of 365 days.

The FTM staking rewards calculator will estimate how much can be earned by staking Fantom.

FTM and most crypto tokens have dropped by over 90% during the 2022 bear market; therefore, staking will grow the number of your tokens but not necessarily the overall value. It’s also worth considering that staking and locking your tokens up may make your funds illiquid and exiting a position difficult.

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California fraud cases highlight the need for a regulatory crackdown on crypto

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California fraud cases highlight the need for a regulatory crackdown on crypto

The California Department of Financial Protection and Innovation (DFPI) announced last month that it had issued desist and refrain orders to 11 entities for violating California securities laws. Some of the highlights included allegations that they offered unqualified securities as well as material misrepresentations and omissions to investors.

These violations should remind us that while crypto is a unique and exciting industry for the public at large, it is still an area that is rife with the potential for bad players and fraud. To date, government crypto regulation has been minimal at best, with a distinct lack of action. Whether you are a full-time professional investor or just a casual fan who wants to be involved, you need to be absolutely sure of what you are getting into before getting involved in any crypto opportunity.

California has toyed with setting up a crypto-specific business registration process for those looking to do business in the state. The proposed framework was vetoed by Governor Gavin Newsom as the resources required to establish and enforce such a framework would be prohibitive for the state. While this type of compliance infrastructure has not been employed yet, it points to concerns that regulatory authorities have related to the crypto industry.

There appears to be a pattern that new industries, especially those that garner as much international attention as crypto, are especially susceptible to fraud. One must go only as far back as cannabis legalization to find the last time California had to deal with fraudulent schemes at this scale.

Related: The feds are coming for the metaverse — from Axie Infinity to Bored Apes

It appears inevitable that California, known to be a first mover in regulation and compliance, will create some form of crypto-specific compliance infrastructure in the name of consumer protection. If history is any indication, once California releases its framework, other states will follow.

Federal and state representatives have been attempting to draft legislation to establish financial standards for crypto with little luck to date. At the federal level, Senators Cory Booker, John Thune, Debbie Stabenow and John Boozman co-sponsored a bill to empower the Commodities Futures Trading Commission (CFTC) to serve as the regulatory body for crypto, while Senators Kirsten Gillibrand and Cynthia Lummis co-sponsored a bill to establish more clear guidance on digital assets and virtual currencies. Lawmakers have even reached out to tech luminaries such as Mark Zuckerberg to weigh in on crypto fraud.

Cryptocurrencies, California, CFTC, Legislation, Law, Scams, Fraud, Bitcoin Scams
Source: Chainalysis

None of these or other similarly crypto-focused bills are expected to pass in 2022, but this level of bipartisan cooperation has been unprecedented in recent times. The collaboration should reflect just the sheer magnitude of the need for a regulatory framework. Said another way, Democrats and Republicans speaking to one another about anything should stop the presses, but the fact that they are co-sponsoring multiple bills should tell us that there is a monumental requirement for guidance.

How should one approach investing in the crypto space if the government is not going to establish controls for crypto? There are a few general points that one should consider if they are presented with a crypto investment opportunity.

Related: GameFi developers could be facing big fines and hard time

When reviewing any opportunity, do your due diligence! Do not take anyone’s word without some level of substantive support. If crypto is not an area of expertise, reach out to professionals who do have qualified experience. Make sure to utilize crypto monitoring and blockchain analysis tools, if possible, as part of the vetting process.

A common strategy of fraudsters is putting undue pressure or artificial timelines on a potential close. Slow down the process and use any and all time necessary to make an investment decision.

If it sounds too good to be true, it probably is. As overplayed as the cliché may be, it does bring up a valid point. There have been instances of schemes offering to pay initial and ongoing dividends for any new investors that are brought in and for additional dividends to be paid from any investors that those new investors bring in. If this sounds like a pyramid or multi-level marketing scheme, that’s because it is. Terms like “No Risk Investment” get thrown around as well. Ultimately, if no one knows where the opportunity is coming from, beware.

While crypto can be a fun and electrifying topic with many legitimate opportunities, there are bad players who will take advantage of the lack of government oversight and the excitement of overenthusiastic or undereducated investors.

Zach Gordon is a certified public accountant (CPA) and vice president of crypto accounting for Propeller Industries, serving as fractional chief financial officer and adviser to a portfolio of crypto and Web3 clients. He has been named a Forty Under 40 CPA, sits on the Digital Assets Committee for the NYSSCPA and has been working with crypto clients in a variety of capacities since 2016.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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NFT space bridges passions for tennis legend Maria Sharapova

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NFT space bridges passions for tennis legend Maria Sharapova

Tennis legend Maria Sharapova appeared at the Binance Blockchain Week Paris 2022 to share her interest in nonfungible tokens (NFTs).

During an exclusive interview with Cointelegraph, Sharapova mentioned that “she is exposing herself to this new world of crypto and Web3,” noting that the sector will help her better engage with her fans. Sharapova was also one of the strategic investors behind MoonPay’s Series A financing round, yet she mentioned that she aims to bridge her personal experiences to the digital world moving forward.

Maria Sharapova (right) with Cointelegraph senior reporter Rachel Wolfson (left) at Binance Blockchain Week Paris 2022. Source: Rachel Wolfson

Cointelegraph: What are you doing here today at Binance Blockchain Week Paris?

Maria Sharapova: I’m crypto curious and would like to figure out how to bridge the incredible physical experiences that I’ve been able to have with my fans over so many years. I’m now finding ways to include experiences in the digital world, so that’s what I’m most excited about. Also, as a female entrepreneur, I believe it’s important to pave the way for other women to enter Web3. Money is a topic that I feel we don’t speak enough about as women.

CT: Do you have plans to launch an NFT project?

MS: I’ve been looking at this space for several months now, as I’m someone who is more in favor of opportunities for the long haul. When I saw the opportunity to bridge physical with digital experiences, I knew I wanted it to be a long-term experience for myself. Storytelling is very important and it’s a huge component of Web3. I think stories will be told better for both parties when thinking about a project long-term.

Recent: The Caribbean is pioneering CBDCs with mixed results amid banking difficulties

CT: Do you think NFTs can help create better fan engagement?

MS: Absolutely. NFTs are about finding ways to communicate with the right communities interested in what I’m doing within a different type of space. For example, I was seen on a television screen every week playing tennis for so many years, yet I no longer have that platform on a daily basis because I retired a couple of years ago. The Web3 experience has given me access to my fans in entirely new ways. I feel like I’m more engaged with them, as opposed to them just being engaged by watching me compete.

CT: As a female entrepreneur and former athlete, do you have plans to get more women involved in Web3?

MS: I want to allow women to have a space where they experiment with Web3. For example, I was 17 when I won my first grand slam and social media was in no way part of that experience. It took years for me to get comfortable with social media over time. I think Web3 is also an area where one has to get out there in order to learn and grow from it. As I mentioned earlier, the conversation about money, finance, crypto and blockchain is a taboo conversation. People may feel that unless they know about these topics, they shouldn’t speak up. But I think this should be the other way around — you learn a lot more if you ask questions and get involved.

CT: Why did you decide to invest in MoonPay?

MS: I want to diversify my portfolio. In the beginning, my investments were around consumer goods. For example, I invested in the sunscreen brand Supergoop early on. I am now exposing myself to an entirely new category.

CT: What do you think are the biggest challenges associated with Web3 and how can we overcome these?

MS: I’d love to see the quality of Web3 experiences come through a bit more and improve, specifically in the digital space.

Recent: Are decentralized digital identities the future or just a niche use case?

CT: Any additional comments?

MS: I’m really interested in the NFT space because it bridges my passion for fashion, interior design and creating spaces that are unique to individuals and communities. I’ve become more interested in this space because it has more of a design perspective. It’s also an entirely new revenue stream that both artists and women are discovering.

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Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered Companies

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Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered Companies

Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered Companies

New legislation proposed in the parliament of Kazakhstan will allow only authorized miners to mint digital currency, if adopted. The draft has been designed to comprehensively regulate the industry and reduce what its sponsors label as uncontrolled consumption of electricity in the sector.

Lawmakers in Kazakhstan Submit Crypto Mining Law, Seek to Curb ‘Gray’ Mining

Members of the Mazhilis, the lower house of Kazakhstan’s parliament, have put forward a new bill introducing rules for the extraction of cryptocurrencies in the country. Under its provisions, only companies registered at the Astana International Financial Center (AIFC) or non-resident entities that have agreements with licensed data centers, will be permitted to mine digital coins.

Kazakhstan became a magnet for crypto miners following China’s crackdown on the industry and the influx of mining businesses has caused a growing power deficit. AIFC, the Central Asian nation’s financial hub, is in the focus of government efforts to place the country’s growing crypto sector under oversight. Earlier this year, exchanges registered there were allowed to open accounts with local banks.

The current procedure for notifying authorities of mining activities is voluntary, the crypto news outlet Forklog noted in a report on the legislative attempt. The process is regulated by an order issued by the minister of digital development. Only a third of all mining companies operating in Kazakhstan have registered, Member of Parliament Ekaterina Smyshlyaeva revealed.

“The uncontrolled use of electricity by ‘gray’ miners poses a threat to the energy security of Kazakhstan,” the lawmaker insisted. Smyshlyaeva added that the current legislation does not regulate the mechanism for the sale of the mined cryptocurrency or the role of local financial service providers and the circulation of digital assets. “The procedure for their production and the establishment of property rights to them are regulated only at sub-legislative level,” she explained.

According to Kazakhstan’s State Revenue Committee, the contributions of crypto mining entities to the state budget reached $1.5 million in the first quarter of 2022. In July, President Kassym-Jomart Tokayev signed into law a bill amending the country’s Tax Code to impose higher tax rates on crypto miners. The levies now depend on the amount and average price of electricity consumed for the minting of bitcoin and other cryptocurrencies.

Do you expect the new law to reduce the number of entities authorized to mine cryptocurrencies in Kazakhstan? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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