What is TON Staking?
TON is the native token of The Open Network, a blockchain that uses the Proof of Stake (PoS) consensus mechanism. The security and stability of the blockchain is maintained by a set of network validators; they propose candidates for new blocks made up of transaction batches, and validate and approve them in return for staking rewards.
Find out more about staking on the TON website.
What is Tonstakers?
Tonstakers is a liquid staking protocol built on the TON blockchain. To generate yield, users can:
Stake TON tokens and receive a liquid staking receipt token in return
The liquid staking protocol will lend TON to validators that stake TON, and receive staking rewards in the process
The value of the liquid staking receipt token will reflect any staking rewards generated over time
Find out more about Tonstakers here.
TON Staking in the Crypto.com App
The Crypto.com App offers a pass-through service directly to Tonstakers, making it easier for users to stake TON and earn rewards.
To participate, make sure you are eligible for TON Staking and have sufficient TON tokens in your Crypto Wallet. Then, follow these steps to start staking:
Go to the Earn tab from the home screen and tap Staking
Tap The Open Network
Input the amount you wish to stake
Review the details of your stake, accept the Terms and Conditions, and tap the Confirm button when you’re ready
Important: Please read the section below on ‘Risks of TON Staking and Tonstakers’ and do your own due diligence on TON and Tonstakers before participating in TON Staking.
Who can participate in TON Staking?
Crypto.com App users who are not citizens or residents of the following jurisdictions are eligible to participate:
The United States of America and its territories
Canada
Hong Kong SAR
Seychelles
South Korea
Singapore
Thailand
Australia
What rewards can I get from TON Staking?
Crypto.com provides TON Staking via a liquid staking service offered by Tonstakers. When you send an instruction to stake TON via Tonstakers, you will be given a receipt token based on the prevailing conversion rate (of TON to the receipt token) on the Tonstakers protocol. The value of the receipt token is expected to increase over time to reflect staking rewards in the Tonstakers liquid staking protocol.
When you send an instruction to unstake TON, you will redeem the receipt token for TON based on the prevailing conversion rate (of the receipt token to TON) on the Tonstakers protocol, and receive TON in your Crypto Wallet. The conversion rate is determined solely by the Tonstakers protocol, and may increase or decrease based on the protocol and risk factors set out below .
How long does it take to unstake my TON?
There is no unbonding period for TON Staking. However, it may take up to a day to process your funds.
What are the fees charged by Crypto.com?
A 0.01% Service Fee will be deducted weekly from your staked TON balance.
What are the risks of TON Staking via Tonstakers?
By participating in TON Staking with the pass-through service, you will be subject to risks from both TON Staking and Tonstakers. These include:
Slashing: Slashing penalties (fines given to validators) are imposed on validators who misbehave. A portion of the staked TON tokens are deducted from the validator’s total stake. This means that you could potentially lose all your staked TON if there is a slashing event.
Liquidity Risk: Take note of the Activation Period for staking TON. After each validation cycle, your stake remains locked for an additional nine hours for blockchain security.
Technical Risk: Technical risks associated with liquid staking may include smart contract failure, hacks, network critical delays, and exploits. This may result in a loss of data or access to your staked TON.
The risks listed above are non-exhaustive. Please read the TON Documentation here carefully, and do your own research and due diligence thoroughly before making any decisions to stake your assets.
More information about Tonstakers: