Aptos Introduced Delegated Staking

Layer-1 smart contract platform Aptos recently made headlines in light of Tesla CEO Elon Musk’s now-deleted tweet, which mentioned APT as acronym for Advanced Persistent Threats. Eagle-eyed crypto observers mistook it for APT token – which nevertheless triggered a 7% increase due to speculation.

More recently, however, the company behind the protocol, Aptos Labs, made waves by partnering with payment processing giant Mastercard in the latter’s Mastercard Crypto Credential – an identity and verification protocol that will enable remittance and payment processing solutions on blockchain networks. 

But perhaps there isn’t a bigger development for Aptos than its recently-launched and highly-anticipated delegated staking function on the smart contract platform, much to the delight of APT holders. In today’s article we will discuss the news and see how it could affect Aptos itself. 

Briefly on Aptos 

Aptos is a next-generation layer 1 smart contract platform built on Move, its own programming language, which allows developers to create decentralized apps on the blockchain. 

Aptos burst onto the scene after securing massive investment from a variety of top venture capital firms and buoyed by its top-notch development team featuring former Meta (NASDAQ: META) executives and engineers. Aptos developers claim that the blockchain can support up to 150,000 tps, making it one of the fastest protocols in existence. 

Consequently, a host of decentralized finance protocols are moving to Aptos, with the blockchain supporting over 40 DeFi projects and counting. Aptos’s user base is only set to grow in the coming years with the implementation of delegation. 

More details on the project here. 

Aptos democratizes yield accrual by enabling delegated staking feature

Last April, Aptos announced that it was launching delegated staking in order to democratize staking on the smart contract platform and enable more users to earn staking rewards without having to run their own nodes. This will reduce the threshold of Aptos tokens that users need to stake and generate yield on the platform. Moving forward, Aptos users only need a minimum of 11 APT tokens to take advantage of staking through Aptos validators. 

Therefore, Aptos holders will no longer need to resort to staking on other off-chain or on-chain platforms to earn rewards. Aptos holders interested in staking their APT tokens can do so directly from the Aptos Explorer or its wide array of native staking interfaces.

How does delegated staking work on Aptos?

Staking is a blockchain service wherein users lock up their tokens within a smart contract to help support and run a PoS blockchain protocol. Users are then rewarded in transaction fees paid by others who transact with the Aptos blockchain.

Previously, Aptos users needed 1 million APT and specialized hardware to run a node and accrue yield of the blockchain’s native staking capability. Moving forward, however, anyone with at least 11 APT can begin earning staking rewards by delegating their APT with an Aptos validator to accrue rewards automatically and participate in governance initiatives.

Aptos users earn a portion of the staking rewards obtained by the validator node. Simultaneously, the validator node will not have any access to the delegating user’s rewards.

The final word

Native, delegated APT staking is regarded as one of the safest ways to accrue yield on Aptos because the staking rewards are generated directly from the blockchain. The development is a game-changer that might cement the blockchain’s place among the leading L1 protocols in the years to come.

SimpleSwap will surely keep an eye on the project and share the most interesting and notable news concerning Aptos. Now if you want to learn more about staking, make sure to read our previous articles: Staking Crypto For Passive Income and How To Set Up The Node For ETH Staking. 

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.