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Staking

Staking provides an additional means by which investors can make passive income. Staking refers to the holding of cryptocurrency funds in a designated wallet, thus supporting the functionality of a blockchain system. On the Lux Blockchain, two tokens can be staked, LUX and GLUX, which earn compound interest as a reward from the network. One benefit for validator owners is that revenue earned in LUX earns yield for being staked. That reward is given in KARMA, which rebases at a DAO governed APY to incentivize continual adoption of the LUX network. This return is due to the nature of compound interest, which is calculated every 30 minutes, replicating the OHM financial model.