Learn more about what staking is and how to choose between different options.
In the most basic sense, staking crypto is an approach for earning rewards through holding specific cryptocurrencies. Staking crypto is very similar to depositing money in a bank for earning 'interest' or the rewards for deposits.
Each investor has, or should have, a plan that suits their investment needs. To cater to different investment needs we offer multiple staking pools or plans that allow investors to stake for a time period that is comfortable for them. Investors that stake for longer periods are rewarded with higher returns, whereas shorter periods have lower returns.
DCAP users deposit a specific number of tokens into a smart contract. The tokens are locked up for a time period chosen by the user and held in escrow earning interest on their deposit. If a user wants to withdraw their stake earlier than they agreed, they may do so with a penalty, similar to a 401K, IRA or other retirement investment account.
The staking protocol for the DCAP network locks up the investor's holdings, just like money deposited in a bank. Staking enables the DCAP ecosystem to operate more efficiently. The key result in staking limits supply, thus taking the token out of circulation. This relieves any sort of large sell pressure and gives the team advance warning on when, or if, DCAP token is going to become available on the market.
Upon the initial launch, 6,000,000 token or 11.54% of the entire DCAP supply was allocated to staking rewards. This is supplemented by DCAPs buyback protocol where DCAP purchases token on market, and deposits that token into the staking liquidity pool.
Receiving rewards is quite straightforward. On the same page to add a stake, you can also end a stake. After ending a stake, your initial deposit plus the reward will be deposited back into your wallet. Keep in mind that ending a stake earlier than the lockup period will incur a penalty.