> Blog > Benefits of Staking FTT

Published September 29, 2022

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Crypto is “programmable money.” Not only can you spend it, but you can plug it into a vast ecosystem of decentralized finance (DeFi) or hold and stake it to receive various benefits from other financial platforms.  

The FTX token (FTT), in particular, offers unique staking benefits to FTX exchange holders that you may want to take advantage of. 

But first of all, what even is staking? 

What is Staking?

Staking is whenever you lock up the tokens you hold in exchange for rewards. It is one of the most prominent ways of earning passive income in the crypto space. There are two verticals of staking: blockchain staking and dApp staking.

Blockchain staking is done to secure proof-of-stake blockchains in a decentralized way through aligning economic incentives across the decentralized crowd and everyone on a proof-of-stake network can stake to participate in the safeguarding of the chain’s security in exchange for rewards. Blockchain stakers are granted new tokens that are “mined” when a new block filled with validated transactions is produced. Blockchain staking is usually difficult to perform with prerequisites in setting up both the relevant hardware and software, however staking services such as Lido are making blockchain staking readily available for everyone.

DApp staking usually involves locking up the tokens to the smart contracts deployed by a web3 protocol to earn rewards from participating in the underlying project’s growth. For example, Curve Finance’s token holders are rewarded through staking to obtain the rights to govern the protocol and decide which liquidity pool receives crypto incentives; Aurory’s NFT holders are rewarded through staking to embark on gamified virtual expeditions with their NFTs to earn in-game cosmetics and utility items.

Benefits of Staking FTT 

While FTT staking does not offer token emission rewards, there are still numerous benefits of staking FTT. These include:

  • Increased referral rebate rates: Referrers that stake FTT are paid a higher fraction of their referees’ fees.
  • Maker fee discounts: Refer to the table below to see how staking FTT lowers trading fees.
  • Extra votes: FTT stakers receive extra votes in FTX polls.
  • Free airdrop rewards: FTT stakers get free weekly SRM airdrops and other potential airdrops in the future.
  • Waived withdrawal fees: FTT stakers get a number of free ERC20 and ETH withdrawals every day.
  • Waived fiat withdrawal: FTT stakers get two fiat withdrawal fee waiver per week for amounts below <$5000
  • IEO tickets: FTT stakers get tickets for initial exchange offerings (IEOs) hosted in FTX (see table below).

If you stake FTT, you can say goodbye to pesky transfer fees. Another benefit that you’ll enjoy is free gas fees, or one free withdrawal of ETH or other ERC-20 tokens every day for staking just 25 FTT. For someone making regular withdrawals on ERC-20, doing this from the FTX exchange is a big benefit. 

Not only does FTT staking reduce the amount you’ll be paying for withdrawals, but it also gives you discounts on trading fees that you can even get paid by FTX by trading with negative fees(see table above)!

Here is FTX’s standard fee structure: 

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How to Stake FTT 

Staking FTT is relatively simple. First, you’ll need to create an FTX account if you haven’t already. 

Next, you’ll need to buy some FTX tokens. Refer to the trading fee discount table above to determine how much FTT you want to stake.  

From there, head to the FTT page and select “Stake” underneath the “FTT Staking” section.  

Enter the amount of FTT tokens you’d like to stake and click “Stake.” That’s it! 

Getting Started with FTT

FTT staking is a great way to enhance your trading or investing experience on FTX. And by trading on the exchange, you are helping to support FTX’s initiative to promote effective altruism. With every trade, FTX pledges a percentage of the trading fees to invest in humanitarian-focused projects.  

To support FTX in its, sign up for an FTX account today or consider joining FTT DAO, an independent, community-led DAO set up by friends, followers and fans of the FTX Token.

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