Flits, Dutch developers of a cryptocurrency trading app, will soon introduce ETH staking onto their mobile platform. The team plans to roll the feature out in the next few months. It’s the latest in a string of upgrades to the Flits app, including a walletconnect feature allowing users to link directly to DeFi trading networks.
More ways to generate income
ETH staking gives customers another method of generating passive income beyond masternodes—allowing users to make extra coin through the proof of stake (PoS) algorithm.
By holding, or staking, a certain number of coins over a guaranteed period of time, users get rewards of extra coin for supporting the blockchain. In this case, the network is the Ethereum ecosystem. Users need to stake 32 ETH to become a full validator, helping the network reach full consensus and reaping rewards in the form of tokens. Users can also stake less by joining a staking pool.
Staking is undergoing testing on the app throughout February, and Flits reminds their 50k-plus plus users there are no fees associated with cold staking or masternodes on the app.
“We developed the idea to create an app where you can host and employ your own masternodes without all the hassle,” Flits Chief Operating Officer Koen van Griensven told KYD on YouTube.
“And from there it’s evolved to focus on other cryptos and ways of generating passive income like cold staking, but also ways to earn the crypto and spend it.”
Staking vs cold staking
In the Flits ecosystem, users can mine blocks and earn rewards in two ways: masternode rewards and staking rewards.
The percentage of reward is commonly higher for masternodes, but if users don’t have enough coin to run masternodes, they can still earn rewards by delegating their staking power to an offline wallet. This means they keep precious coins secure and safe from dodgy internet connections and save energy by not having to keep computers running 24/7. These wallets are called “cold” wallets, hence “cold staking” and are usually stored on a rented VPS.
The beauty of the Flits mobile wallet is it allows users to cold stake within the app. Just install the Flits app on your mobile device, deposit coins into the wallet and set it for cold staking. There’s a fee of 5% on all cold staked earnings, but users can stop the process and withdraw their coins whenever they choose.
ETH staking with Flits
While details are scant on exactly how Flits plan to integrate ETH staking onto the platform, Ethereum customers must invest 32ETH and launch validator software before they can begin staking on the network. However, with 112 coins trading across the Flits system and a total combined wallet value of 224 BTC, integrating ETH coin, in the words of Flits chief technical officer Mitchel van Amstel, “is definitely on the horizon.”