Matic Network, the Ethereum scaling solution, announced the launch of its staking mechanism test over the weekend, allowing users to earn rewards by staking MATIC tokens. However, as the first iteration, Matic Foundation, the top development community behind the network, will stake the MATIC tokens on the users’ behalf.
1/🎉Staking on Matic Network mainnet is now live! Stake now to start earning rewards.$MATIC holders can now delegate their tokens to validator nodes on the Matic mainnet & begin receiving rewards for helping to secure the network.
— Matic (@maticnetwork) June 29, 2020
The Foundation has partnered with some of the industry’s heavyweights in its staking program, including India’s NASDAQ listed company, InfoSys, which was added as a validator on the platform earlier this month.
Staking offers up to 120% annual yield
Matic Network is a Layer 2 scaling solution that utilizes a decentralized network of proof-of-stake (PoS) validators and a network of sidechains, which allows most of the heavy computations to conduct off-chain. The Foundation’s website claims the system carries out up to 10,000 transactions per second, which significantly improves the 12 TPS on Ethereum.
With the new staking mechanism, the statement claims early users will earn 120% in annual returns which is considerably high compared to other “high yielding” staking tokens such as Synthetix Network (54%), Fantom (34.89%) and even Tezos (8.85%), according to Stakingrewards.com.
A sequence of launches; Infosys next
According to the Foundation’s statement, the direct staking platform’s second launch stage will be direct to external validators such as InfoSys. Bharat Gupta, a senior principal at the IT consulting firm, said the partnership with Matic Network would allow the company to launch its own “privacy-oriented public blockchain solutions.”
So far Matic Foundation has staked 12% of the total MATIC supply in its staking program to keep it running in the next half a decade with the hope that the community increases the staking pool in the next year.
MATIC’s possible growth?
MATIC’s ever-expanding developmental growth has reflected on the token’s price in previous upgrades, and the latest launch of its PoS mechanism will have a similar effect. However, past spikes in price did not exactly last, could the staking platform change this?
Towards the end of 2019, Matic suffered a 70% crash after soaring over 220% from whales cashing out their investments. The token is 83% up in the past 90 days to trade at $0.02, but fear still lingers in the minds of investors on the continued bullish run despite the upgrades.