FSN Token holders holders extract time-value out of their FSN tokens without staking.
Here are the top 4 reasons that you may not want to set up staking node but still want to earn FSN rewards
- You have less than 5,000 FSN tokens.
- You do not want to learn how to run your own node.
- You do not want to send your tokens to a staking pool.
- You want to realize a big chunk of your time-value rewards today rather than gradually over time.
Unlike any other blockchain, Fusion’s Proof of Stake consensus engine has been custom built to accept Time-Locked FSN tokens for staking. This provides an opportunity for FSN token holders to benefit from staking in a risk-free way without needing to set up their own nodes.
But how can this work?
Let’s say we have to very different people Jack and Jill.
Jack owns 5,000 FSN tokens but is busy, new to blockchain technology and does not want to go through the process of setting up and managing a node.
Jill on the other hand is an experienced node manager and staker and already has deployed a high functioning node to the Fusion Network. Probably using Fusion’s easy-to-follow guide.
Jack and Jill can easily collaborate in a mutually beneficial way to maximize their rewards from staking by using Fusion’s Time-lock and Quantum Swap features. Actually the process is super fast and simple.
Before reading this example it is helpful to understand how Fusion staking rewards are calculated. All of this is explained here.
Jack time-locks his 5,000 FSN tokens for a set period of time. For the purpose of this example let’s say from today until 2 months into the future (now, 2 month).
Jack then proceeds to offer a swap in the Quantum Swap marketplace for his 5,000 (now, 2 month) time-locked FSN tokens in exchange for complete FSN tokens, let’s say 500 FSN tokens.
Jill views this swap in the Quantum Swap marketplace and determines that she can generate more than 500 FSN token rewards from staking Jack’s 5,000 (now, 2 month) time-locked FSN over the 2 month period. So Jill executes the swap.
In this way, Jack has extracted 500 FSN from the two months usage rights to his 5,000 FSN tokens!
In fact, we can even use the assumptions in the Fusion staking estimator above to see if the swap was also favourable to Jill.
(5,000 / 8,000,000) * 2.5 FSN * 5760 * 365 = = 3,285 FSN tokens earned per year from staking.
Because Jill only has the right to use Jack’s tokens for 2 months, we need to apply this calculation to the yearly rewards above.
3,285 * (2 months / 12 months) = 547.5 FSN tokens.
Because Jill earned 547.5 FSN from the usage rights to Jack’s tokens and the cost to use Jack’s tokens was 500 FSN, we can see that Jill has also benefited from executing on the swap.
Of course, there are other factors involved in running a node, like VPS fees for example that have to be factored into the calculation. The numbers used above are not to be used as a standard of measurement but are merely an example.
After the two month period is over, Jack has complete ownership of his 5,000 FSN tokens which are no longer time-locked and Jill has earned an extra 47.5 FSN tokens by executing the swap and staking Jack’s tokens for 2 months.