How to Stake MOVR Tokens and Earn Passive Income
Mononriver (MOVR) is an Ethereum-like smart contract launched as a parachain on the Kusama network in June 2021. It is a sister network of Moonbeam that allows developers to build and experiment on an incentivized canary network where new codes can be tested and verified under real economic conditions.
Just as we have interest-bearing savings accounts in the traditional financial system, most long-term crypto traders like to buy and stake tokens to generate more profits from their investments, and MOVR provides this opportunity.
Staking and how it works in Cryptocurrency
Staking in Cryptocurrency allows participants to earn rewards on their crypto holdings with higher interest rates compared to interest-bearing savings accounts. This involves providing security and effectiveness to the blockchain network in exchange for an incentive or annual percentage yield (APY), as it is often called.
Staked tokens are used to ensure that all transactions are verified and secured without a bank or payment processor. This process relies on the Proof of Stake consensus algorithm, where staked coins play a vital role in the creation of new blocks instead of using energy to mine these new blocks.
Now that you understand how staking works, we will walk you through a step-by-step guide to stake MOVR tokens on Moonriver to earn passive income.
Staking MOVR Tokens on Moonriver
- To begin with, you need to install metamask application on your phone or download the metamask extension on your browser.
- Because MOVR tokens are native protocols of the Moonriver network, you need to add Moonriver as a custom network in metamask and switch to the Moonriver network. To do this, click on the Ethereum network at the top right corner, select “add network,” and fill in these details in the appropriate space.
Network Name: Moonriver
RPC URL: https://rpc.moonriver.moonbeam.network
ChainID: 1285 (hex: 0x505)
Symbol (Optional): MOVR
Block Explorer (Optional): https://moonriver.moonscan.io/
- Navigate to Moonbeam.network/moonriver from the dApp built by the Moonbeam Foundation. MetaMask will prompt you to sign in and select the account you want to connect to the dApp. Upon changing the network to Moonriver and accepting permissions, you will be redirected to the main Moonriver dashboard, where you will find details about your crowdloan rewards data, accounts balance, staking data, and last transactions.
How to stake MOVR by Nominating a Candidate
MOVR token holders can nominate a collator candidate by staking their tokens and adding to the collators stake. The collator will then share the rewards received from producing blocks amongst all of their nominators. In other words, your reward will be based on how much you contributed versus the total contributions the collator received.
For each MOVR delegator, the reward distribution (per block proposed and finalized by the collator) is calculated in this manner:
The amount due is the corresponding inflation being distributed in a specific block. The stake is the number of tokens provided by each delegator in respect to the total stake of that collator.
To nominate a candidate, scroll down to theStaking section on the dashboard and click Manage nominations. You will be able to stake your MOVR tokens, modify existing stakes, nominate collator candidates, and get an overall report of your staking activity from the staking dashboard.
To see data for each collator in the active and waiting pools, click on the select a collator menu. Choose a collator in the top 40 collators by stake, and ensure that your nomination will be in the top 100 nominations by stake for that collator so that you can start earning rewards.
You can also find a specific collator from the list by searching for them by address. To see a list of the nominators for the collator, click on the number under the Nominator column.
You will be redirected to the list of nominators, where you can see the amount staked under the Voted column.
It would help if you researched how to stake MOVR with the best collator candidate. But for the purpose of this guide, we will use the following collator candidate account: 0x4c5A56ed5A4FF7B09aA86560AfD7d383F4831Cce –.
To determine the amount you would need to stake to earn rewards, scroll to the bottom of the page, then navigate to the very last page, and again scroll to the bottom. You will need to stake more than the amount staked by the very last nominator in the list.
For this example, and at the time of writing this, you would need to stake more than 5.7961 MOVR tokens to earn rewards.
If you have selected a collator and determined the amount of MOVR you want to stake, proceed to add stake and nominate the collator of your choosing by clicking nominate on the dashboard.
How to manage your Nominations
Active nominations can be modified to stake or un-stake MOVR tokens. However, if you decide to un-stake a portion of your tokens, you will still need to meet the minimum nomination requirement of 5 MOVR tokens.
To stake additional funds:
- Click the pencil icon next to the collator candidate you want to modify
- The Edit stake pop-up will appear, and you can choose to stake or un-stake tokens for the selected collator candidate. You can click on + Bond funds to increase the staked amount for this example.
- Enter the amount you would like to bond; 2 MOVR tokens will be used for this example.
Your nomination will be confirmed once you confirm and sign the transaction.
This same process can be used to un-stake tokens or remove a portion of the stake.
How to Remove Nominations
If you want to remove a nomination or un-stake your MOVR tokens entirely:
- Click on the trash icon
- A pop-up will appear asking you if you are sure you want to revoke the stake. Click Revoke
You will be prompted to sign a transaction in MetaMask. If the transaction is successful, your updated balance will reflect on your dashboard, and the nomination will be removed from your list of nominations.
In conclusion, Moonriver provides an opportunity for you to earn passive income from your crypto holdings. You can do this by carefully nominating active collators and staking your GLMR tokens for rewards.