Fantom uses a Fluid Staking model where stakers select a lockup period between 0 to 365 days. The rewards percentage increases linearly with time, rewarding the most committed stakers more. This way, the reward schedule combines long-term sustainability for the network and flexibility for stakers. It was voted for by FTM holders in July 2020.
In the Fluid Staking model, your effective APY:
- increases proportionally with your lock-up period
- decreases proportionally with the average lock-up period of all stakers
- decreases proportionally with the total amount of FTM staked by all stakers
There are two ways to participate in staking