When Satoshi Nakamoto invented Bitcoin, he implemented a proof-of-work consensus mechanism to safeguard the blockchain: before adding a new block, miners must compete to solve a complicated cryptography problem, with one winner earning their block reward in the process. This seemingly simple mechanism makes it costly for malicious players to act dishonestly because once a transaction is deemed invalid, the block reward will go to the other miners.

The downside, however, is stunningly obvious: so much energy is wasted when miners all try to solve the same puzzle with computing chips and only one gets the reward. There must be an easier, more energy-efficient way.

As the oldest financial institution, banks have made their living mostly by doing one thing: offering interest for deposits and pooling the money for other purposes — typically lending. There’s a similar version of this on the blockchains: people lock up their cryptocurrency to be a part of on-chain activities and earn interest, while validators pool these crypto for a chance to validate transactions.

This is an alternative to the proof-of-work consensus mechanism: proof-of-stake (PoS). Instead of asking miners to solve puzzles, PoS blockchains require that validators stake their crypto holdings before validating blocks and be punished for misbehavior.

Not everyone can be a validator. Take BNB Smart Chain (BSC), for example: to run a validator node, you must set up a dedicated computing environment and, most importantly, stake at least 10,000 BNB. The more BNB you stake, the higher your chance of being selected as the validator for the next block and earning the block reward. If a malicious or fraudulent block was added, the validator will be penalized by having a portion of its crypto stake destroyed, an act commonly referred to as slashing.

Participants without sufficient holdings can delegate their crypto to a certain validator in exchange for a portion of their reward. Lista DAO is one such platform where you can stake your BNB in exchange for about 1% in annual return and a chance for other activities in the BNB ecosystem.

To stake your BNB on Lista DAO, head to our BNB staking page.

Scroll down to the Stake section, enter the amount of BNB you wish to stake, then click on “Stake”.

That’s it! You just staked your BNB and received our liquid staking token (LST), slisBNB.

slisBNB can be used as collateral at Lista Lending to take out a loan, or just earn lending interest. You can also mint slisBNBx with slisBNB and join various Binance Launchpool activities. At Smart Lending, slisBNB can earn both lending interest and trading fees at the same time.

Unlike high-risk, high-reward memecoin hunting, staking is more about locking up a steady income with very low risk, and being a meaningful part of the blockchain community. Staking rewards consistent, patient players with compound interest and slisBNB, your LST from staking BNB on Lista DAO, is the key to BNB Chain’s vibrant DeFi ecosystem.

In the future, we will launch more products and bring more utilities to slisBNB. We will also publish more educational content like this to help you along the journey. Follow our social media accounts and join our community for our latest updates.

When Satoshi Nakamoto invented Bitcoin, he implemented a proof-of-work consensus mechanism to safeguard the blockchain: before adding a new block, miners must compete to solve a complicated cryptography problem, with one winner earning their block reward in the process. This seemingly simple mechanism makes it costly for malicious players to act dishonestly because once a transaction is deemed invalid, the block reward will go to the other miners.

The downside, however, is stunningly obvious: so much energy is wasted when miners all try to solve the same puzzle with computing chips and only one gets the reward. There must be an easier, more energy-efficient way.

As the oldest financial institution, banks have made their living mostly by doing one thing: offering interest for deposits and pooling the money for other purposes — typically lending. There’s a similar version of this on the blockchains: people lock up their cryptocurrency to be a part of on-chain activities and earn interest, while validators pool these crypto for a chance to validate transactions.

This is an alternative to the proof-of-work consensus mechanism: proof-of-stake (PoS). Instead of asking miners to solve puzzles, PoS blockchains require that validators stake their crypto holdings before validating blocks and be punished for misbehavior.

Not everyone can be a validator. Take BNB Smart Chain (BSC), for example: to run a validator node, you must set up a dedicated computing environment and, most importantly, stake at least 10,000 BNB. The more BNB you stake, the higher your chance of being selected as the validator for the next block and earning the block reward. If a malicious or fraudulent block was added, the validator will be penalized by having a portion of its crypto stake destroyed, an act commonly referred to as slashing.

Participants without sufficient holdings can delegate their crypto to a certain validator in exchange for a portion of their reward. Lista DAO is one such platform where you can stake your BNB in exchange for about 1% in annual return and a chance for other activities in the BNB ecosystem.

To stake your BNB on Lista DAO, head to our BNB staking page.

Scroll down to the Stake section, enter the amount of BNB you wish to stake, then click on “Stake”.

That’s it! You just staked your BNB and received our liquid staking token (LST), slisBNB.

slisBNB can be used as collateral at Lista Lending to take out a loan, or just earn lending interest. You can also mint slisBNBx with slisBNB and join various Binance Launchpool activities. At Smart Lending, slisBNB can earn both lending interest and trading fees at the same time.

Unlike high-risk, high-reward memecoin hunting, staking is more about locking up a steady income with very low risk, and being a meaningful part of the blockchain community. Staking rewards consistent, patient players with compound interest and slisBNB, your LST from staking BNB on Lista DAO, is the key to BNB Chain’s vibrant DeFi ecosystem.

In the future, we will launch more products and bring more utilities to slisBNB. We will also publish more educational content like this to help you along the journey. Follow our social media accounts and join our community for our latest updates.