Staking on aelf may Bring You Dividends with an APY of 7,639%

aelf is one of the fastest developing blockchains in the crypto space. Recently, the team revised its bonus mechanism to better incentivize nodes to participate in the aelf ecosystem. The event exceeded all expectations, including the developers’ outlook, after the staking APY reached 7,639%.

Today, we take a closer look at the staking mechanism on aelf and how you can profit from it.

How Does the aelf Vote Mechanism Work?

aelf is an open-source blockchain that aims to support the future digital economy. The team spent 3 years developing the mainnet to establish its high level of security. Today, it is rapidly expanding into a highly promising ecosystem. And, one of the reasons for this ascension is its economic model.

On the aelf network, participants can choose between four paths to attract earnings. Simply put, they can choose to become:

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• Block producers (BPs)
• Valid backup nodes
• Investors
• Developers

Each of these roles gets an equal share of the pie, which is aelf’s richly incentive model. Together, the four actor categories can help the aelf ecosystem grow swiftly and healthily.

As part of the AEDPoS consensus operation of the aelf main chain, a transition behavior occurs every week. After each session ends, the aelf mainnet consensus contract generates a dividend of N * 0.125 ELF. This equation uses the actual number N of blocks that the current session has produced. In the end, all the dividends reach the following main chain bonus pools proportionally as a node incentive:

1. Voters

On aelf, voters are users participating actively in node voting. Also, they are the ones who jointly elect production nodes to represent the public’s will.

The aelf voters receive their income from Citizen Welfare, which scales 75% of the primary chain Dividend Pool.

To vote, participants need to stake ELF tokens. Next, the Election Contract calculates the necessary number and duration of staking ELF to identify the voting weight. The system does not put an upper limit on how many voters can take part in the process.

2. Block Producers

Block Producers (BP) cannot exceed the number of 17+2n. Here, “n” stands for the number of years that aelf mainnet has been opening officially for election. The BP’s engage in block production by abiding by the consensus rules. Only that way can they get the block reward. Any node on the aelf blockchain can become a BP.

3. Valid Backup Nodes

These nodes are those that have failed to become production nodes. Nevertheless, they can still participate in block verification. This way, they can guarantee that the competition for node selection is correct.

Initial Phase Voting Returns on aelf Mainnet

The nodes that founded the aelf mainnet have operated a mainnet swap at 3:00 P.M. on September 16. As a result, they successfully finished an initial renewal and saw the highest weekly return rate approach, 146.91%, which is 7639% APY.

The mainnet token swap was an eagerly expected event that saw the ELF’s price jump by at least 40% ahead of it.

aelf proposes some of the most significant rewards for staking as part of its proprietary Stake to Vote mechanism. For instance, the graph below shows the initial phase voting returns for stakings of 10,000 ELF tokens:

During the initial voting phase, aelf gathered 39,5299 tickets only on the first day. However, by the time the phase officially ended, the aelf founding nodes received 139 votes, with 134,5335 tickets. While voting continues with upcoming phases, voters can already claim their voting rewards. Also, anyone interested in taking part in this process can stake to vote at any time.

Vote Now to Get Your Citizen Welfare

From September 9, all the mainnet ELF token holders can log into the Governance page. There, they can vote for the current initial node.

It is worth noting that 1 ELF token represents 1 ticket. Also, voters can pick any lock-up period between:

• 3 months
• 6 months
• 12 months
• 24 months
• 36 months

As is the case with most staking protocols, the longer you lock your tokens, the higher the reward will be. Additionally, the platform calculates profit distribution depending on the number of votes and the lock-up time.

Every voting phase on aelf ends with the vote income collection. This means that voters can collect their Citizen Welfare once every 7 days.

Users should keep in mind that voting impacts the next election’s result. Simply put, users must vote before 3:00 P.M. Thursday to get their first round of voting income at 3:00 P.M. next Thursday. Also, they can claim their Citizen Welfare every Thursday until the agreed lock period ends.

An Example of the First Voting Phase on aelf

The users who voted before 3:00 P.M. on September 9 will receive the first dividend income seven days later. Also, this will happen only after the end of the node change. In this case, it will take place at 3:00 P.M on September 16. Lastly, the dividend income depends on the weight of the vote.

Alternatively, users voting between 3:00 P.M. on September 9 and 2:59 P.M. on September 16 can access their income seven days later. So, at 3:00 P.M. on September 23, they can receive the first phase of dividends based on the weight.

If you choose to participate in the voting phase before 3:00 P.M. on September 9, you will receive the first dividend income at 3:00 P.M. on September 16. Also, your payment will depend on the weight of the vote after the end of the node change.

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According to its road map, aelf will hold other node elections as its mainnet economic system stabilizes. Nevertheless, you should take advantage of the following voting phase ending on September 23 and get the chance to obtain the mainnet dividends with an APY of 7,639%.