Secret Network is a well-known protocol blockchain built on Cosmos SDK. Its purpose is to build a distributed and private computing system, which can be integrated into DApps. This with the aim of protecting the data in blockchains that are public by default and protecting the confidential information of users. To achieve this, Secret Network uses smart contracts secrets, which are similar to the smarts contracts of Ethereum, which can take encrypted input and then produce encrypted output without exposing any sensitive data or information.
What is staking?
Staking is a process by which we take our cryptocurrencies, and we block them in a wallet in order to obtain rewards or profits. This process is very common to see in cryptocurrencies that use the Proof of Stake (PoS) process. This is because PoS nodes must stake in order to gain voting power and validation within the network. As a reward for their work and economic effort, the PoS protocol offers a reward in tokens to them, and with this the economic circle of the system is closed.
Staking is an activity that can be done in two ways. First, as an integral part of the blockchain protocol, which happens in networks that use protocols like PoS, PoA, and DPoS. And the second way is through platforms DeFi o CeFi, which offer staking services for different cryptocurrencies and tokens. In both cases, the staking process has the same objective: to offer rewards to users for locking their cryptocurrencies within the platform, which are used for block validation or for other financial products (such as loans).
What is Secret Cryptocurrency (SCRT)?
Now, the cryptocurrency of the Secret Network, the SCRT token, is the native cryptocurrency of this network. The purpose of the coin is to provide economic support for the Secret Network and all its services. That is, SCRTR is used to pay commission fees at the time of interacting with the decentralized applications of its ecosystem. Furthermore, it also serves as a token for the decentralized governance of the system.
As part of the Secret tokenomics, the SCRT token has a maximum issuance of 190.165.060 SCRT. Of this amount, the total initial network supply was 170 million SCRT, distributed as follows:
- Community: 75 million SCRT
- Equipment: 36 million SCRT – with a grace period of between 2 and 4 years
- Treasury: 30 million SCRT
- Foundation: 1 million SCRT
- Inflation. 8 million SCRTs
With this adjustment Secret tokenomics is targeting an inflation rate of 15%, with an expected inflation rate of 20%, if less than 67% of supply is staked, and a gradual increase to 7% when more than 67% of supply is staked. XNUMX%.
How to stake secret natively?
Secret Network works with a consensus protocol through a delegated Proof of Stake. Thus, SCRT holders can delegate their participation to a freely chosen block validator. The validator will earn rewards for processing transactions and calculations on the Secret Network and distribute them to delegates depending on the size of the deposits.
Secret Network validators are known as “secret nodes” and must keep uptime high and use compatible hardware to stay active. In this way, since it is a hard job for the validators of the network, the incentives must be great. That is why the validators receive rewards for each block generated in the Secret Network and pass a percentage of these rewards to the delegates, who will keep a part in the form of a commission.. The commission allows to finance the operations of the delegates ensuring that they can continue to operate and that the Secret Network network remains sustainable.
Calculating the exact reward for staking secret can be somewhat complicated, since there are many elements involved in this result, such as the inflation of the network, which depends on the new SCRTs that are created for each block, the rate of staking, which depends on the percentage of SCRT with which you are delegating or staking, the validator's commission, the number of blocks per year and network taxes, among other points. Now, if you want to calculate the performance of staking in the native Secret network, you should know that a good tool to achieve this is Stake or Die.
Since Secret works with delegated proof of participation, it is not necessary to run this same validator on the network to be able to stake with secret. Many people are not interested in running a Secret node because becoming a network validator can be complex and usually requires a lot of experience. In addition, this network currently has a limit of 50 active nodes, so only the top 50 nodes at the participation level are an active set of the Secret network and they are the only ones that receive block rewards for processing transactions and calculations in this network. .
Now, being a delegate, anyone can receive the rewards. If you have Secret in your own wallet you can delegate your tokens to a validator and generate more SCRT quickly. For this, people use web wallets, hardware wallets and the command thin client. Most users prefer to use their own web wallet, but more advanced users can also opt for a hardware wallet like Ledger and even a command line. Although they are good options, if you do not want to complicate yourself and are looking for a safe, simple, functional and fast alternative to staking with Secret, we recommend you continue reading to find the best alternative.
How to stake Secret Network on Bit2Me Earn?
As you have seen in the previous point, to stake Secret you have several options and one of them is to do it natively on the Secret blockchain. Now, the easiest way to stake secret is to use Bit2Me Earn. If you decide to stake with Secret (SCRT) on Bit2Me Earn you can receive up to 28% compound rewards. Bit2Me Earn is the most complete staking service in the world and has support for secret (SCRT), the privacy crypto of the Secret Network.
To stake Secret on Bit2Me, all you need to do is go to Bit2Me Earn and search for Secret cryptocurrency. At this point, you just have to click on the “Add” button to start the process. From there, you can either start a purchase of Secret tokens with your debit or credit card, use your balance in euros within Bit2Me, or exchange other cryptocurrencies for Secret in order to start the staking process.
Once the fund aggregation process is finished, you will be able to see how the rewards you will receive for your SCRT tokens arrive in your wallet on a weekly (or daily, if you have chosen) basis. And the best thing is that you can add more funds or withdraw them at the time you want without major complications or penalties for it. In this way, Bit2Me Earn becomes the easiest way to stake Secret.