DeFi (decentralized finance) pledge mining is a concept that has emerged in the blockchain field in recent years. It combines the decentralized features of DeFi with the pledge mechanism of traditional finance, providing users with the opportunity to participate in project governance and obtain benefits. This article will delve into the basic principles of DeFi staking mining, analyze its operation, and explore its impact on the digital finance field.

 Basic principles of DeFi staking mining

The basic principle of DeFi staking mining is that users participate in the governance and liquidity provision of the project by locking digital assets in smart contracts, thereby obtaining corresponding benefits. This model not only motivates users to actively participate in the project, but also promotes the development and stability of the project. Taking a DeFi project on the Ethereum network as an example, users can participate in the project's decision-making voting and governance by locking tokens in smart contracts, and at the same time receive corresponding token rewards. This model effectively attracts more users to participate in the project and promotes the development of the project.

 How DeFi staking mining works

The operation method of DeFi pledge mining mainly includes three links: user staking, project governance and revenue acquisition. First, users need to choose a suitable project and pledge their digital assets to the corresponding smart contract. Subsequently, users can participate in the governance of the project, such as voting for decisions, making suggestions, etc., and exert their influence. Finally, users receive corresponding benefits based on their pledge amount and participation level, usually in the form of project tokens. This model allows users to participate in project governance while also sharing the fruits of the project's growth, achieving a win-win situation.

 The impact of DeFi staking mining

DeFi staking mining, as a new craze in the field of digital finance, has had a profound impact on the entire industry. First, it promotes project development and community building, attracts more users to participate in project governance, and improves the decentralization of the project. Secondly, DeFi staking mining provides users with opportunities to earn profits, encourages more people to participate in digital asset investment, and promotes the prosperity of the digital financial market. In addition, DeFi pledge mining also promotes the development of blockchain technology and promotes industry innovation and progress. It is foreseeable that DeFi staking mining will continue to play an important role in the future and become an important part of the digital finance field.

 Summarize

DeFi staking mining, as a new force in the field of digital finance, has attracted the attention and participation of many users with its unique model and mechanism. By pledging digital assets to participate in project governance, users can not only gain benefits, but also exert their influence to jointly promote the development of the project. The rise of DeFi staking mining has not only changed the traditional financial model, but also promoted innovation and development in the digital financial field. In the future, DeFi staking mining is expected to become an important part of the digital financial field, bringing more opportunities and benefits to users. Let us look forward to the broader development space of DeFi staking mining in the field of digital finance and explore the infinite possibilities of the digital future.

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In the past year, what is most popular in the currency circle, DeFi can be said to be popular from the beginning of the year to the end of the year. Due to the explosion of DeFi projects, staking mining has also begun to become very popular. Before everyone understands what staking mining is, let’s briefly understand what mining is in the currency circle. In fact, the earliest market value of mining is to use shovels to dig gold, coal, ore, etc. in the soil. In the currency circle, mining Mining refers to the process of using computers to compete for accounting rights in a data pool. The pledge mining I will introduce to you today is one of them. So what exactly is DeFi pledge mining? Let the editor of the currency circle introduce to you the basic principles of defi staking mining.

 What is defi staking mining?

Let's explain with a simple little story.

A Ping is an engineer who understands blockchain and believes that the Cosmos project is very promising. He thinks that since the Cosmos tokens are left in the wallet anyway, why not get a node and earn some blocks every month? reward, so Aping set up a Cosmos validator/node and started mining. As he dug, he found that the number of Cosmos he held was too small, and the mining rewards were not as expected, but he had no money to buy more. Multi-coin, what should I do?

A Ping thought for a moment, picked up the phone and called A Cai and A You, long-term investors in Cosmos, and said to them: "Hey, hey, I am now a node of Cosmos, and you will keep your coins as well. How about you?" Just leave it to me, we’ll share the block rewards proportionally, and I’ll just take a small fee.”

Ah Cai agreed without thinking, but Ah You frowned and asked Ah Ping, "No, I'll give you the coins. What will I do if you take them all away?"

Aping smiled and said: "Of course I will protect you. I will write a smart contract. You just need to put the coins in. I will not handle these assets. The coins that are put in are only the coins that are put in." Talent can move, which is fair to everyone."

Therefore, the three people reached a consensus and put the coins into the smart contract, and Aping was responsible for the node operation. Later, everyone knew that Aping provided such services, so they put the coins into the smart contract and handed them over to Aping for management. Later, Cosmos developed Getting better and better, Aping became the main node operator, together with Acai and Ayou, relying on the mechanism of staking mining, they entered retirement career at the age of thirty.

 Introduction to the basic principles of defi staking mining

The so-called Defi pledge mining is actually a proof-of-stake consensus model mechanism. It is an alternative for users to mine cryptocurrency. Whether it is centralized or decentralized, users can invest in their own assets and do not necessarily need to build a Nodes and all exchanges can handle the verification process themselves, so pledgers only need to provide assets. And such a blockchain is also difficult to attack.

Many crypto projects make money by providing users with a token to hold. This sticky nature can prevent the transfer of funds, but the more tokens investors buy, it may also push up the price.

Defi staking mining income generally provides stability by paying interest to holders through tokens. The rates generally vary slightly due to differences in platform operators.

This article is a detailed analysis by the editor of the currency circle on what defi staking mining is. In the currency circle, we have two methods: staking and defi liquidity mining. Defi staking and defi liquidity mining There may be a trend of merging the definitions of investors recently, but liquidity mining is focused on obtaining high returns and improving liquidity. No matter which one you choose, you must be aware of the risks and avoid the temptation of high APR. A sensible investor.