🟪Staking

Staking in Ultron Vault is a way for users to invest their cryptocurrencies and receive rewards in return. In staking, users hold their cryptocurrencies in a specific wallet that supports this functionality and helps maintain the decentralized network.

• We use the Proof of Stake (PoS) consensus mechanism, as opposed to the Proof of Work (PoW) consensus mechanism used in Bitcoin. In PoS, validators (or stakers) lock up a specific amount of cryptocurrency as collateral to ensure they follow the rules of the network. In return, they receive a portion of the block rewards generated by the network.

The benefits of Ultron Vault staking include:

• Earning rewards: Users can receive cryptocurrency rewards by staking their coins on a PoS network. These rewards may vary depending on the cryptocurrency and the network.

• Network security: Validators who stake are responsible for maintaining the network's security by ensuring only valid transactions are added to the blockchain. This helps protect the network against malicious attacks.

• Incentives to hold cryptocurrencies: By staking their cryptocurrencies, users have an incentive to hold them long-term instead of selling them immediately. This can help stabilize the cryptocurrency's price and reduce market volatility.

An example:

• Suppose a user has 100 units of ULTRON. The PoS network requires the user to lock up at least 50 units as collateral to become a validator. In return, the user receives an annual reward of 110% in units of the same cryptocurrency (ULTRON). If the cryptocurrency's price increases during the staking period, the user can earn additional gains.