The Terra blockchain is a decentralized network of stablecoins. There are various ways to get free Luna tokens, and one option is to stake by being a validator delegate. To do this you need to run a validator node and form part of the top 100 in terms of Luna, or better still delegate Luna to other validators. It is very easy to delegate Luna inside the wallet.
The amount of any reward depends on your transaction volume on the Terra ecosystem and taxes charged,
With respect to the current distribution model, Luna stakes will continue to earn ANC overtime for the next few years and they can further participate in ANC LP staking pools on the ANC protocol platform.
Anchor Protocol and ANC Token
Developed by Terra Labs, Anchor Protocol is one of the best savings and lending platforms and offers good returns to lenders, while making it possible for borrowers to get stablecoins using their stakings as collateral.
The Anchor Protocol uses staking rewards to provide returns for users. ANC is the official governance token of the Anchor Protocol, and this can be staked to participate in polls. ANC is often required as a deposit for launching new governance proposals.
It is estimated that at the start, roughly fifty million ANC were airdropped to Luna stakers. Before you can be eligible for this airdrop, you need to have been staking Luna on Terra as of block 2179600 — when the snapshot was recorded. Those who have Luna tokens are able to keep on staking to gain ANC for two years. If you join the Loop market, you could get some airdrops.
What is the total supply of Luna tokens?
According to CoinGecko, The Luna token is believed to have a circulating supply of 400 million LUNA coins with a total supply of 972 million.
What are the risks of staking terra Luna tokens?
While Terra is a stablecoin protocol, Luna doesn’t carry the stability properties of the Terra coins that it collaterizes. One risk is that if you stake your Luna, you can’t have access to it for at least three weeks as the tokens will be locked.
Validators are responsible for reporting the exchange rates accurately and keeping a solid architecture; people who underperform risk incurring a small percentage being slashed. To reduce your risks as a delegator, you will need to diversify large stakes among multiple trusted validators and keep track of your delegates.
Running a validator can be a tedious task, so many people prefer to stake through delegation. There is no minimum entry requirement for delegators. Those who stake Luna, ANC, or provide liquidity in the ANC-UST trading pair receive a fraction of rewards relative to their proportional share of assets in that pool.
Mirror, Anchor, and Pylon protocols on Terra Money all airdrop native tokens to $LUNA HODLers. Those with delegated Luna staking on Terra Station wallet are qualified to receive airdrops. The good news is that these airdrops are issued every week. But there are operational fees involved — Terra users understand that fees are much lower than that of BTC and ETH.
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