Hello Splinterlands Players
In this post, we will be going over how to stake SPS, and some of the important information that you'll need to know!
First, what is SPS Staking?
Staking is when you freeze a portion your SPS. That means you can't do anything with them. You can't trade it on the market, or swap it for another coin. As a reward for you freezing your SPS, you are given earnings, according to a pre-determined, and changing percentage. As of writing this article, you can earn 105% per year on your staking.
There are some really great benefits, but also some important drawbacks. Let's start with the benefits.
- You get more free SPS. You can claim what you earn, and stake it, so you earn more. Think of it as compounding interest!
Now for the important warning!
When you stake SPS, it means you cannot do anything with it, until you unstake it. This takes 1 month. So, if there is a crazy price movement, you may miss out, so be aware.
Unstaking SPS isn't an instant action. It takes 1 month, where you will receive 25% of the amount you have unstaked each week.
Let's examine a quick example.
I have 100 SPS staked. I want to unstake 40 SPS.
After 1 week, I will get back 10 SPS.
After 2 weeks, I will get back another 10 SPS
After 3 weeks, I I will get back another 10 SPS
After 4 weeks, I will get back another 10 SPS
Luckily, the game does a great job of making this clear with a well placed message.
To summarize, staking SPS is a great way to earn more SPS, but beware! You won't be able to take advantage of large price movement, for you, or against you!
Let me know what else you'd like to learn about Splinterlands in the comments below!