What Is Liquid Staking (Fantom)?
Liquid Staking (Fantom) is a new type of staking protocol that allows users to stake their tokens and earn rewards without having to lock up their funds for an extended period of time. It works by allowing users to deposit their tokens into a smart contract, which then automatically distributes the rewards among all participants in proportion to the amount they have staked. This means that users can withdraw or add more tokens at any time while still earning rewards from their initial investment. The main benefit of Liquid Staking is that it provides greater liquidity than traditional staking protocols, as well as increased security due to its decentralized nature.
The Fantom network uses Liquid Staking as part of its consensus mechanism, allowing token holders who participate in validating transactions on the network to receive rewards for doing so. These rewards are distributed based on how much each user has staked and how long they have been participating in the network’s validation process. As such, this system encourages longer-term participation and incentivizes users with higher returns over time compared to other forms of passive income generation like interest bearing accounts or dividend payments from stocks/bonds etc..