I have some confusions related to staking anyone can explain these little points.

  1. I want to give staking feature of ERC20 tokens at binance smart chain i have also created a staking contract that is calculating reward based on number of block those are mined and also user can deposit that XERC20 token to that staking contract & they can redeem but that money or profit will be generated from where ?. As a company we will give staking service of our token to our holder so they will earn from staking but how company will earn ? What are the steps after that ?

1 Answer 1


Well, your company doesn't directly earn from the approach of staking that you explained above. There are other approaches such as introducing fees/tax that can make the company "earn" a little.

Usually, as a token creator (your company), you set aside a pool of tokens that can be distributed between the staking addresses. There are a variety of reasons for doing this but most of the time is to keep the price of the token on an upward trajectory by temporarily avoiding holders to sell (locking their tokens for some time). In another word, it's a type of incentive to anyone who holds onto your token for a longer period making your token more valuable.

So, it means that the remaining tokens that the company owns are worth a lot more.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.