Staking

Staking lets token holders lock up their tokens to help secure the network while earning rewards in return. The EFFECT staking system is built to encourage long-term participation and reward those who commit to supporting the network.

To join the network, every node must stake a specific amount of EFFECT tokens. The exact amount will be decided once the DAO is fully operational.

You can access the staking dashboard here

Slashing

If a node breaks the rules, it can lose part of its staked tokens as a penalty. This process, called slashing, is key to keeping the network secure and discouraging bad behavior. In the EFFECT staking system, slashing is built in to protect the network’s integrity. The DAO is responsible for carrying out these penalties, ensuring everything stays fair and transparent.

Rewards

Staking rewards are distributed to token holders who participate in the network by locking up their tokens. These rewards are designed to incentivize long-term participation and to encourage token holders to contribute to the network’s security and stability. Currently the EFFECT staking rewards are set at 10% annually, as voted on by the DAO. But this rate is subject to change based on the network’s needs and performance.