Marcin FrąckiewiczDecentralised networks are entering a new phase, defined by unparalleled potential and advancements that amplify their functionality and cross-functionality.
A prime example of this evolution is TRON, a dynamic blockchain that boasts exceptional processing power and provides a platform for over 1,300 DeFi applications and projects. As opposed to some of its counterparts, TRON’s crypto staking feature has its unique mechanisms.
About Staking on TRON
Recently, crypto enthusiasts have engaged in discussions about TRON Stake 2.0, a development that has magnified the blockchain’s usefulness and efficiency. Although both processes produce crypto passive income, unlike staking for Ethereum, staking with TRON does not assign transaction fees to reward miners. Instead, the TRON blockchain deploys energy and bandwidth resources to power chain operations.
The staking process with TRON is called “Delegated Proof of Stake” (DPoS), a departure from the Proof-of-Work used by Bitcoin miners and Proof-of-Stake employed in the Ethereum blockchain. With the TRON blockchain capable of handling over 2,000 operations per second and a speedy consensus time of 3 seconds, it’s an attractive choice for DeFi projects, decentralised applications, crypto games, and staking investments.
Stake 1.0 vs Stake 2.0: What Has Changed?
Despite its unique features, the initial TRX staking faced a few challenges, including unstaking difficulties and inefficient resource allocation. Some users also reported interoperability issues. In response, TRON launched a revamped staking model, Stake 2.0, in April 2023.
One of the major updates in this new model is the involvement of the Tron Virtual Machine (TVM) in the staking mechanism. This addition of TVM allows users at various levels to utilise the blockchain’s speed and processing capabilities, thereby enhancing the staking experience. Stake 2.0 also addresses the previous unstaking rule. Now, users can alter their delegated votes for resources without halting their investments, which elevates created liquidity.
The new model also improves resource allocation management. Users are now empowered to allocate their votes rather than having energy and bandwidth capacities automatically assigned. Additionally, with Stake 2.0, a user’s voting rights and processes remain unaffected when they decide to cancel their investments.
How to Stake TRON 2.0?
The process involves finding the best place to stake TRON, comparing TRON staking APY options, understanding the staking and liquidity pool requirements, and creating an account. Once your wallet is connected to the staking terminal, you can start to delegate votes to Super Representatives using your staked TRX coins and allocate votes to energy and bandwidth resources.
Conclusion
TRON Stake 2.0 has resolved the shortcomings of Stake 1.0 with the introduction of new features and more flexible mechanisms. TRON’s initiative to allow users to delegate votes and choose super representatives has increased transparency, flexibility, and the overall activity level within its decentralised ecosystem.
