In the blockchain world, staking is an increasingly popular method that allows users to earn rewards by locking up their tokens. Fetch.ai’s FET token is no exception. This article will give you a detailed introduction to three methods of staking FET tokens and analyze the advantages and disadvantages of each method.
Method 1: Staking FET on the Fetch.ai mainnet
Staking FET tokens on Fetch.ai’s mainnet is the most straightforward way. Users need to transfer FET from the Ethereum network to the Cosmostation wallet and delegate it to validating nodes. During this process, there are several important steps and considerations:
Advantages: Higher annual interest rate: Staking FET tokens on the mainnet can get a higher annual interest rate than Ethereum, which can even be as high as 63% in the first two months.
Long-term rewards: Future staking rewards are very attractive and users can expect higher returns.
Low gas fees: The gas fees for transactions on the main network are relatively low, and users can save a lot of money.
Easy-to-use interface: Cosmostation wallet has a user-friendly interface, simple operation, and is suitable for novices.
shortcoming:Transfer complexity: Users must first transfer FETs from Ethereum to the mainnet, a process that may be confusing to some users.
Insufficient exchange support: Currently, the native FET tokens of the mainnet are not supported by many exchanges, and users need to be extra careful when transferring.
Lack of reward plan: Currently there are no Phoenix Project rewards on mainnet 2, which may affect the choices of some users.
Method 2: Staking ERC-20 FET on Ethereum
If you already hold ERC-20 FET tokens on Ethereum, you can stake directly using MetaMask. The process is relatively simple, users only need to install MetaMask and create a wallet.
Advantages: Guaranteed annual rate of return: Users who stake on Ethereum can receive a 10% guaranteed annual rate of return on FET tokens.
Phoenix Project Rewards: Users can receive rewards in Mettalex and Atomix tokens, increasing the diversity of income.
No need to transfer tokens: If you already stake ERC-20 FETs on Ethereum, you don’t need to do anything, it’s quick and easy.
shortcoming
Lower annual yield: Compared to mainnet, the annual yield on Ethereum is lower.
High gas fees: Due to the congestion of the Ethereum network, transaction fees can be very high, sometimes exceeding $100 per transaction, which is a considerable burden for users.
Method 3: Hold FET on the exchange to receive MTLX rewards
Holding FET tokens on the exchange will not directly bring FET rewards to users, but holding the number of FET tokens within a specific period of time can obtain MTLX rewards.
advantage
MTLX rewards: Holding a sufficient number of FET tokens (approximately 10,000) can obtain MTLX rewards, which increases users’ income.
No need to transfer tokens: If you buy FET on an exchange, there is no need to move it elsewhere, making it easier for users to manage.
shortcoming:No FET rewards: This method does not involve the staking of FET, so users can only receive MTLX rewards, but not additional FET rewards.
Not suitable for small investors: For small investors, it may not be practical to hold a sufficient number of FET tokens to receive MTLX rewards.
Summarize
There are many ways to stake FET tokens, each with its own unique pros and cons. Choosing the staking method that suits you best depends on your needs and investment strategy. If you are pursuing high returns, mainnet staking may be the best choice; if you already hold tokens on Ethereum, it is more convenient to stake directly on Ethereum; while holding FET on the exchange is suitable for those who want to use MTLX Reward users with additional revenue.