Cryptocurrencies are not only regarded as a convenient way to transfer value. Some of the coins and tokens on the market also have unique and special features that can bring certain perks to the users. To celebrate the diversity, we are describing some of the coins along with their key characteristics in Guarda’s blog. This time, we will break down the Callisto Cold Staking process.
What is Callisto?
Callisto Network is one of the prosperous platforms on the current cryptocurrency market. The whole project was created by the developers of Ethereum Commonwealth – one of ETC development teams. Callisto Network is improving the methods for smart contract development and experimental protocols implementation. The said protocols are focused on combining the main features of smart contracts and protocol-level configuration. Basically, everything that Callisto is focusing on is based on smart contracts – the development funding mechanism, protocol used for governance system implementation and CLO cold staking.
What is Cold Staking?
Callisto added Cold Staking special feature as a way for the long-term holders to receive some crypto coin perks. Generally, Cold Staking is a process based on smart contracts. CLO holders can get a per cent from the future emission of CLO coin (as long as they have Callisto on their cryptocurrency wallet balance).
The protocol can solve some long-standing issues:
- Cryptocurrency abandoning. CLO coins are a valuable asset to have – if you have the coins on your balance, you can receive extra.
- The power of miners is getting balanced out by the stakers.
Cold Staking protocol is not related either to Proof of Stake or a consensus mechanism – it is a contract between Callisto and its users, distributing the percentage of mining rewards between the holders in proportion to the stake.
How does Cold Staking work?
The mechanism of Cold Staking is overall quite understandable. The process consists of the following steps:
At first, the user has to have some CLO on their balance to stark staking. They will need to choose the amount they are ready to deposit. The next thing to mention is a Callisto Cold Staking smart contract. By taking part in it, the user agrees to the terms and officially becomes a part of the staking process.
The CLO sum chosen for staking gets frozen for about one month – the users cannot access it without interrupting staking. When the freezing time runs out, the staker has several behavioural options to choose from:
- The staker can receive the percentage and continue staking (leave the deposit).
- The staker can receive the percentage withdraw the deposit (quit staking process)
- If the staker is inactive for more than a year, the contract is considered eliminated and the user gets their deposit back.
The longer is the Callisto staking period, the bigger is the user’s reward.
Callisto Cold Staking with Guarda
The Cold Staking feature is now available in Guarda wallets: we have made a tutorial on step-by-step staking in our F.A.Q section. We at Guarda value the special features of the supported crypto coins and tokens, so we try to immediately implement them in our wallets. Callisto Cold Staking is available inside Guarda Wallet applications – we made sure that the whole process is easy and understandable even for an inexperienced user. Check out our guide, stake CLO with Guarda and get your crypto reward every month.