Thread by @the_economystic

1/ I bought $eGLD to store value instead of a savings account. Staking on @getMaiar then gave me #passiveincome & led me to #financialfreedom! Share this with others and they *will* ask: "Where does this passive income come from?" Let's learn together: simply! ⚔️ @egld_initiative

2/ A key to onboarding is simplicity. @getMaiar's user experience helps hugely, but people *must* understand how it's possible to get rewarded for locking their #crypto. Read on to learn about staking so you can confidently & excitedly invite others to "take back their time"! 🪙

3/ One part that makes #blockchain so cool is that it's permanent: once a "chunk of data" is confirmed valid, it can't be changed or altered! Humans aren't involved in this process; it's all done by code: thousands of computers talk among themselves & confirm the data is true.

4/ These computers are called validators since they communicate & prove that "chunk of data" is valid. These "chunks of data" are called blocks, and a series of blocks = where we get the word "blockchain": a chain of data! That data is added to the blockchain and is permanent. 🔒

5/ @ElrondNetwork has 3200 of these "validators" all over the planet to make sure those "chunks of data" are factual, but not just anybody can become one of these validators. Before you can get "into the circle" of validators, first you need collateral.

6/ Collateral acts as a form of protection for the lender, in this case, the "lender" is Elrond Network itself; #EGLD validators need 2500 $EGLD (≈$125k). Unlike Bitcoin, Elrond Network's software requires minimal computing requirements & validators are rewarded for its service.

7/ When you stake $EGLD you'll choose from a list of Elrond Network's validators, called "staking providers". Therefore, in helping to secure the (Elrond) network, staking your $EGLD coins with a validator, you'll receive a share of the rewards in the form of newly minted coins!

8/ Elrond's economics model is based on an inflation rate that decreases each year, so yes, while $EGLD is inflationary just like printing $USD - the inflation of $EGLD is defined by code so therefore does *NOT* face uncertain fluctuation based on human intervention or policy.

9/ In order to continue adding accurate and true data to the blockchain, Elrond Network *NEEDS* those validators... and those validators in essence stay working for Elrond Network since the network rewards the with more $EGLD for their service, as described above!

10/ If validators stopped getting rewarded for their service, they would flee to profitable ventures & Elrond Network would effectively die with no computers to verify & confirm more data. Elrond Network's inflation decreases every year, so how will we keep validators around?!!

11/ As inflation falls lower & lower year after year, fees from each transaction will turn into rewards for validators, providing a sustainable value stream. This model will be able to finance the growth and maintenance of the network without the need of inflation!

12/ We've all witnessed inflation with $USD, as prices rise for assets and other goods translates to a decline of purchasing power over time for the consumer. $EGLD's deflationary mechanism brings with it an avenue of transition to a deflationary monetary system; a new money.

13/ To recap simply, when you stake your $EGLD, the reason you get $EGLD rewards is because your selected staking provider (validator) is getting rewarded for validating the new data and keeping Elrond Network alive and well... AND SECURE. 🔒 We all share these rewards!

14/ This value (reward) stream comes from inflation at the start, but inflation will be replaced with transaction fees that will turn Elrond Network into a self-sustaining value stream! Also as the $USD price of $EGLD rises over time this will protect you from $USD inflation.

15/ Cryptocurrency known for being volatile, but over time the highs and lows of price even out into an upwards trajectory that will compete with $USD inflation - and exponentially so as $EGLD inflation is replaced with transaction fees in decades to come.

16/ I will assure you that #crypto will be serious competitor for #traditional finance & #banks. $USD inflation is literally out of control, and the true impacts of inflation are only on the cusp of being realized. As fiat inflation is realized, people will flock to #crypto. 🤌

17/ I hope this thread enlightens & empowers you, feeling more comfortable & excited to own & stake $EGLD! More importantly I hope this gives you a bit better understanding & confidence to go tell people about @ElrondNetwork! Traditional finance is a scam; #Crypto is the escape.

18/ The aim of this thread was simplicity; though the fabric of this new economic system is highly advanced. Check these links to learn more!
- elrond.com/blog/the-wealt…
- docs.elrond.com/validators/sta…

19/ There's a lot we didn't get into, but for a little bit more info/reading that's easy to digest and super useful, please visit and check out @ElrondWiki! 🔥 Here are some related articles to my thread about staking:
- en.elrondwiki.com/article/stakin…
- en.elrondwiki.com/article/what-t…

20/ Now that Elrond has launched its very own Decentralized Exchange (@MaiarExchange), you might be curious to learn whether you should take your $EGLD and stake or if you should utilize it for #DeFi yield farming! Another great article from @ElrondWiki: en.elrondwiki.com/article/stakin…

21/ That's it!🔥 Staking can be an intimidating topic, and I've been in the middle of crypto discussions when I realize I don't really understand "staking", and I feel so silly! Simplifying the topic is a key to understanding, less is definitely more! 🧠

This post also serves The Elrond Initiative a "paid to learn" for people with a passion for blockchain, web3 & financial freedom - raising awareness about @ElrondNetwork. Adoption through education, we each earn by learning and teaching! ⚔️ Check the bio!👉 @egld_initiative