Matic Network reaches for 80% token lockup in new staking program. The company mentioned in a press release that direct staking will be limited to the Matic Foundation, the non-profit behind the Ethereum-based scaling solution, which will stake tokens on behalf of the users. The staking is launched in stages.
The Matic Network is a sidechain designed to take some of the heavy lifting off the bottleneck-prone Ethereum network. It claims it can handle anywhere between 4,000 to 10,000 transactions per second – on par with the likes of EOS and TRON that bill themselves as scalable alternatives.
Matic is keen to allow consumers to stake, and claims that early birds can make up to 120% in annual returns. Tezos, another staking token, currently provides users with annual returns of approximately 6-7 percent.
Users who delegate tokens to the Foundation in the early stages will also have the opportunity, at some point, to become a network validator in their own right.
In the next phase, Matic plans to roll out staking to external validators. The project says it has already secured the backing of several “high profile” entities, including the Indian IT consulting firm Infosys.
Overall, Matic has already allocated 1.2 billion tokens, 12% of the total supply, to keep the staking program going for the next five years. But it hopes commitments from other token holders will take this number up to 70-80% within a year.
[image: Clifford Photography]
