STAKE token is used for
- Validators running nodes
- Delegators placing stake on those nodes.
- Rewards to validators.
Additional sidechains can use STAKE to secure their chains, making this the first multi-chain enabled staking token.
What is xDai Chain
xDai is an Ethereum-based sidechain with a stablecoin native currency and beginner friendly tooling.
It uses two tokens
- The native stablecoin xDAI
- The staking token STAKE.
How xDAI STAKE works
The chain uses a version of delegated Proof of Stake (DPOS) consensus – called POSDAO. xDai is the native currency like ETH on Ethereum.
- Paid with a single coin.
The TokenBridge is used to move and convert assets between chains.
- The bridge uses smart contracts on both chains to process transfers, and a group of validators confirm bridge transactions.
- When a bridge transfer is initiated, the specified amount of Dai is locked in a smart contract on the Ethereum mainnet, and the same amount of xDai is minted on the stable chain and sent to the user’s wallet.
- When xDai is transferred back, it is burned, and the corresponding amount of Dai is unlocked in the contract and released to the user’s wallet on the Ethereum mainnet.
The amount created can never exceed the amount of Dai locked in the bridge contract.
STAKE token issuance
Current supply: 8,545,470 STAKE