Edgeless beta staking: 2nd cycle details
Edgeless bankroll staking had been the goal and aspiration from the very beginning of Edgeless' inception and all partners and token holders saw it. Staking is one of the key features that makes the Edgeless project, and the entire EDG ecosystem, a really unique place to be. Staking not only creates more utility for the EDG token but it also helps to get people involved who are not necessarily active online-casino players.
Last year Edgeless started the first cycle of Edgeless beta staking. The 10th of February will be the beginning of the second cycle.
- Why a decentralized casino needs staking
There is a limited amount of Edgeless tokens (a total of 132,046,997). It is not possible to create new tokens or delete existing ones . In the near future Edgeless’ players base and betting limits will increase, calling for a larger total bankroll to sustain the growth of the entire system. To make sure the bankroll is always sufficient, Edgeless needs a mechanism that enables the community to support the growth of the bankroll.
- What is the legal status of an EDG token?
The EDG token is a utility token used by players to avail of Edgeless’ services. The secondary use of the token is to allow the community to participate in bankroll staking. Due to the limited nature of the token, the community can use EDG tokens to sustain bankroll growth.
- Why a beta staking platform?
Staking is based on smart-contract technology which handles tokens owned by Edgeless token holders in a decentralized way. Right now a beta version is operating because Edgeless needs to run several cycles of staking to make sure the entire system runs smoothly. This feature is extremely cyber-security sensitive.
- How many EDG tokens can a token holder stake in the second cycle? Is there a limit?
The deposit will be from 1 000 to 500 000 EDG tokens per user.
- What is the maximum amount a player can stake?
A player can stake as many times as they want but the total amount should not exceed 500,000 EDG
- What reward is offered?
The reward implemented in the smart contract in the second staking cycle will be 5% from the bankroll surplus. Stakers get a part of the reward proportional to the initial number of EDG tokens they stake.
- Who can stake?
Everyone except US citizens can participate in Edgeless staking. Due to uncertainty in the US in regard to the regulation of tokens, this feature is not available to US citizens for now.
- How Edgeless staking works
The bankroll staking feature is based on blockchain smart-contract technology. Smart-contracts allow for effective ways to organize Edgeless’ bankroll crowdfunding, which was never possible before.
The reward offered in the second staking cycle is 5% from the bankroll surplus. Stakers get a part of the reward proportional to the initial number of EDG tokens they stake.
Here is an example of how it works:
Let’s say there are 50 staking participants and each participant stakes 2000 EDG tokens. In total there are 100K EDG tokens staked, and each participant owns 2% of Edgeless’ bankroll.
100K EDG tokens are then sent to Edgeless’ bankroll for a 28-day cycle. Now let’s say that after 28 days Edgeless’ bankroll has a surplus: the bankroll size is 160K, the surplus is 60K, and 5% of the surplus is 3000 EDG. Therefore, 3000 EDG tokens will be distributed to staking participants.
After the 28-day cycle, staking participants can then redeem their staked EDG tokens. In this case, the return would be 2000 EDG + 2% from 3000. In total that’s 2000 + 60, which equals 2060 EDG tokens.
Key dates of the second cycle:
The initiation of staking. People who would like to participate in Edgeless bankroll staking will need to make a deposit*.
Registration and the possibility to make a deposit will close on the 1st of March. On this day, all gathered EDG tokens from 2019-02-10 to 2019-03-01 will be sent to the bankroll smart contract.
The smart contract system will automatically check whether Edgeless’ bankroll has a surplus. If there is a surplus a smart-contract will then automatically take 5% of the surplus and distribute it to the people who had participated in bankroll staking. Participants will be able to redeem their tokens and participate in the upcoming cycle.
*If you are participating in Edgeless staking for the first time you will need to register and complete the KYC process.
The bankroll staking model is created to factor in the latest legal developments in the crypto sector. Similar staking mechanisms are used by other crypto projects.
The Edgeless team follows all legal developments, and if needed, in the future there will be changes made to the principles of staking so that our activities will be in line with regulations.
The EDG token is a UTILITY token. It has no profit sharing, dividends or any other features associated with securities.