Staking & LP Staking on the Backstage Platform
Backstage aims to be a complete game-changer for the events and entertainment industry.
The Backstage platform — The STAGE — has created the chance for the events industry to distance itself from the old funding model. We not only have a Launchpad for venues and artists to find funding, but also the BiKoS Crypto Wallet for businesses, the BKS Metaverse for hybrid and virtual events, and a best-in-class NFT ticketing system that’s supported by the BKS Marketplace — a one-stop-spot for everything in the industry.
Simply put, our all-in-one platform has everything events businesses need to succeed.
Fueling it all is our utility token, $BKS. $BKS powers the Backstage platform and enables the fair distribution of value and efficient financial operations. The token was designed to ensure a steady cash flow and provide liquidity to help our financial ecosystem sustainability.
At Backstage, we want to reward our early $BKS holders. The way we’ll do that is through staking and farming rewards. Here, we’ll discuss all you need to know about staking on the Backstage platform.
- Staking BKS ensures platform liquidity and security
- There are two types of staking: Single-staking BKS and LP staking
- Staking rewards should be solid yet sustainable — don’t expect sky-high APYs but do expect to get your fair share of rewards.
- Projects can utilize staking on the Launchpad to raise funds
First, What Is staking?
According to a SoFi guide, staking is a process where token holders can lock up their tokens to obtain rewards or earn interest. Transactions are verified by all participants in the network and the resulting data is all stored on the blockchain. This ensures network security and efficiency.
Transaction verification can be done either by staking or by proof of work. While proof of work is an energy-intensive method done by powerful computing machines, staking simplifies this process by allowing token holders to lock their tokens onto a wallet node and validate transactions on the blockchain.
This allows for anyone who holds tokens to contribute to the network and earn token rewards in exchange.
At Backstage, we’ve chosen the proof-of-stake model to ensure all can participate and earn rewards.
Staking BKS to Provide Liquidity
BKS simplifies operations, facilitates payments, drives investment, and ensures liquidity. As Backstage brings the crypto revolution to the events industry, we hope it will become a main currency and means of transaction.
To get the full benefits of the Backstage platform, you’ll need to use the BKS token. And to support the ecosystem, our team enabled staking options to ensure liquidity and enhance security.
The Backstage Staking System
Backstage token holders will be able to stake their tokens and serve as liquidity providers for the ecosystem. In return, they will earn rewards that can be redeemed for fiat or can be re-injected into the ecosystem and generate even higher rewards.
For now, we are still designing the staking system and cannot share any information on the return percentages. We’re trying to make the rewards sustainable and solid.
At this point, we can only say for sure that a portion of the token allocation is reserved for staking and LP staking rewards. And that the longer you stake, the more rewards you will get.
On the Backstage platform, there will also be two types of staking:
- Staking: Users single-stake BKS and get returns in BKS — simple and straightforward. You earn a small portion of rewards for helping to confirm transactions.
- LP Staking: Users stake a token pair (50% BKS; 50% another token). They get rewards in the form of BKS. This is a bit more complicated, and does bring in the potential of impermanent loss (explanation here).
Since the BKS token will be so crucial to the function of the ecosystem, users should know that staking could be a smart way to invest in Backstage over the long term. Just think, every time the BKS token is used to buy NFTs, pay for food and beverage, exchange for fiat, purchase digital tickets and more, you’ll earn rewards.
Overall, staking will be a vital part of our tokenomics and ecosystem. It is the basis for the ecosystem mechanics and it allows for the industry to fund itself sustainably. By staking your BKS, you will become part of the community and help drive the crypto revolution in the events industry.
Benefits of Staking for Backstage
- Ensures BKS liquidity
- Helps support token strength
- Reduces the chance of a post-sale dump
- Increases the liquidity pool and helps the system stay healthy
- Enhances security as more people verify transactions (and therefore make the platform more decentralized)
Benefits of Staking for Events Projects
New projects can also enjoy the benefits of Backstage’s staking system while helping the ecosystem maintain liquidity.
For instance, venues and events can raise funds through an initial stake offering. It would work like this:
- Projects pitch their event to a community (music festival, theater play, etc)
- Investors stake their tokens and projects can use that money to fund the event.
- The amount an investor stakes gives them a proportionate percent of the event’s profits.
- Once the event happens and revenue arrives, payouts can be made based on how much each community investor has staked.
- Secured by smart contracts, raising funds through a staking offering is a powerful way to minimize community risk and ensure each investor gets fair value.
Another example is that community members can stake their tokens in return for interest payments. With that, they can help the ecosystem stay healthy and enjoy a steady income — while giving your project funds to launch.
Backstage is powering the crypto revolution in the events industry. Through the BKS token and our blockchain ecosystem, Backstage aims to solve the current challenges facing the events and entertainment sectors. From financing and payments to NFT ticketing and marketplaces, Backstage $BKS will take the events industry toward a more sustainable, profitable and fair future. Backstage has a very strong and open community and everyone can join and contribute to the platform’s development by purchasing tokens and helping fund the entertainment industry.
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