STAKING

Staking serves a couple of crucial purposes. For one, it allows users to earn passive income, and it also keeps the network safe. In the NcogSwap ecosystem, if the user meets the minimum balance requirement, they can validate node transactions or stake to earn staking rewards in return. The probability of that node getting selected to forge the next block is directly proportional to the staked amount involved. Once the node successfully creates a block, the validator will receive a reward in our native token. This process is similar to how a miner will receive rewards in a proof-of-work chain, but the effort involved is comparatively lower. Incentives matter, so to discourage bad behavior and malicious actors, validators turn to lose a part of their stake if they try to attack the network or double sign.

NCOG DeFi staking is as simple as it can get. The design is considerably comprehensive and user-friendly. The initial lock-up period is set to 96 hours by the protocol. The lock-up period starts as soon as the staking process commences.

After the maturity period, users can withdraw their tokens along with the interest earned. Reward claim will involve no charges except gas fees. Since the staked tokens will reduce the circulating supply, the value will increase.

NCOG DeFi protocol will allow users to stake their $NCOG tokens. The fully audited NCOG DeFi Staking Contract will facilitate the staking process.

Although many yield staking/farming pools currently offer a seemingly higher APR return on the paper, they usually wear down with time. The introductory APR rates in the initial stages will attract liquidity, but the platform will fail to keep up. As the token circulation increases due to minting, the existing tokens become debased through inflation or value depletion. This policy has driven many platforms to extinction. Their yields diminish over time, and users slowly withdraw from the platform.