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:
- 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…
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