What is Polygon (MATIC)?
Polygon is a layer-2 solution on the Ethereum blockchain that is created as a scaling solution or sidechain. Polygon protocol enables faster transactions at lower costs.
When a user is making transaction on the Ethereum blockchain they can bridge a portion of their cryptocurrencies to Polygon network that allows them to interact with various decentralized applications listed on Ethereum network.
MATIC is the native currency of Polygon. It is used to pay gas fees on Polygon network such as staking and governance participation. In this manner, MATIC holders can use their token reserves to vote regarding administrative matters on the polygon network.
MATIC is listed on various regaled cryptocurrency trading platforms and decentralized exchanges. Polygon was first introduced as Matic Network in 2017 and was rebranded as Polygon in 2021.
What is Polygon Staking?
Polygon Labs is working on creating scaling solutions such as plasma sidechains as a blockchain bridge using different types of zero-knowledge proofs and Optimistic Rollups.
The proof-of-stake (PoS) consensus mechanism has reduced gas fee and transaction delays on Ethereum main chain. Based on the PoS verification method, Polygon appoints validators to check transaction authenticity, new blocks, and maintain network security.
Validators have to stake or lock the native digital currency in smart contract in order to get elected for block verification. At the same time, Matic token holders can also act as delegators and assign their token reserve to a specific validator.
In this manner, delegators are able to earn the yield rewards and validators chances of getting elected for transaction verification increases.
How does Polygon Staking Work?
Nodes or blockchain users who wish to stake MATIC tokens need to delegate their reserves to a validator on the network. In this manner, the stakers can able to earn rewards based on the ratio of staked funds.
Furthermore, validators can also set minimum requirements for staking deposits. In the same manner, validators can also charge fee or a portion of yield proceeds for their services. The unlocking period of staked MATIC token is set at 80 points that expands to 3-4 days.
In case, a staker wants to exit they can initiate an unbound request. However, it is necessary for the delegators to check and verify the credibility of a validator before locking funds.
This can be done through the Polygon dashboard where the users can access important information such as active validators, total uptime, fee overhead, and minimum staking requirement. Here are some helpful metrics that can be used to ascertain the reliability of validators:
Uptime
Uptime is the total number of blocks added to the network within unit time. Ideally, the uptime of a validator could be as closer to 100% as possible. In other cases, the authenticity of a validator can decline and lead to fewer delegation rewards.
Commission Rate
Commission rate percentage of rewards that validator earn for offering their services.
Minimum Staking Requirements
Validators can set a minimum requirement for least quantity of digital currencies to accept from delegators for staking purposes.
Staking MATIC on MetaMask
MetaMask is a decentralized and non-custodial cryptocurrency wallet that is based on Ethereum blockchain. This wallet project is available as mobile application and browser extension on Chrome, Brave, Opera, Edge, and Firefox. However, Matic investors can also stake the token on the platform.
In order to do so, it is imperative to visit the official MetaMask website and add the browser extension by selecting the currently used browser application.
The second step is to connect MetaMask to the Polygon network by navigating to add network. The third step requires transferring Matic tokens to MetaMask wallet by copying the wallet address and add it to the exchange or other designated platform.
Next, click on MetaMask to join Polygon network. Staking function automatically activates when MetaMask is connected. The user may delegate MATIC quantity for staking and send it to the required validator address.
The commission and uptime statistics appear next to all validator names on Apps tab. The stakers also have to account for service fees and purchase a voucher to do so. It is necessary to confirm necessary details such as gas amount and total price before buying the voucher and to re-confirm the transaction.
Delegation process is completed now and the users can proceed by clicking on stake more option in order to withdraw generated yields.
Conclusion
Polygon protocol has added various important features to Ethereum blockchain such as scalability, reduced in gas fees, and multi-chain network. Matic Staking allow investors to earn yields from reserves in addition to gaining price momentum on spot market.
