Benefits of staking SOUL

Benefits of staking SOUL

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Estimated reading time: 2 min

Earning KCAL – every day

Staking SOUL is the only way to earn the fuel token of the Phantasma ecosystem, KCAL. KCAL is needed for any action performed on chain such as normal transactions, staking, claiming cross chain swaps and more. This is why dApp providers and others depend on staking SOUL to cover transaction costs associated with their software. The same applies to digital artists using KCAL to mint new artwork on chain as Phantasma Smart NFTs.

For each SOUL staked you earn 0.002 KCAL every single day. A person staking 1,000 SOUL will earn 2 whole KCAL daily – a Soul Master staking 50,000 SOUL will earn 100 KCAL daily. Considering the low fees of Phantasma, staking a small amount of SOUL will normally be enough for the average user to be able to use the Phantasma ecosystem for free by spending his or her daily KCAL.

Voting Power – nerfing whales while rewarding loyalty

In addition to earning KCAL, staking SOUL brings other benefits. Phantasma’s decentralized governance gives users voting power relative to their staked SOUL amount and also the duration of their staking. The formula is as follows:

Voting Power = sqr[amount staked] x [days staked], with the weight of staking duration capped at 1,000 consecutive days of staking. Long term supporters of the ecosystem carry far more weight than someone who joined and staked their SOUL yesterday. This helps avoid instability in governance through rapidly changing token holders. A risk to all PoS based blockchains is that large token hodlers may have too much influence. This can be harmful for the evolution of the chain and ecosystem. At Phantasma, this is mitigated through basing voting power on the square root of the amount of SOUL staked. Thus a few small token holders may actually have the same influence as a single token holder with far more tokens. As an example, see how 10 token holders with moderate amounts achieve the same voting power as a single token holder with 10 times their cumulative amount staked:

Single token holder, 1,000,000 SOUL staked for 1000 days: Voting power = (sqr)1,000,000 x 1,000 = 1,000 x 1,000 = 1,000,000
Ten token holders staking 10,000 SOUL for 1000 days, 100,000 SOUL staked in total: 10x (sqr)10,000 x 1,000 = 10x 100,000 = 1,000,000

Decentralized storage allocation

Phantasma offers built-in decentralized storage. Our block producers store your most precious data in a secure fashion, replicated across our nodes. You can choose between storing the data encrypted or open to the public depending on your preferences. This is perfect for the ultimate unstoppable dApps which can in some cases be stored entirely in our node network. Also, for the average user who simply wants to maintain a backup of some particularly important personal files, Phantasma delivers this feature securely encrypted and password protected.

Each SOUL staked provides 40 kilobytes worth of storage. At scale, 1,000 SOUL staked provides 40 megabytes of decentralized storage, while a Soul Master with 50,000 SOUL staked earns a 2 gigabyte storage allocation on the Phantasma nodes. This storage solution is self scalable and redundant, ensuring the safety of your data.

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