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How to earn passive income from Ark coin delegating and voting
Ark does not have a staking system, to earn passive income from Ark, one needs to perform delegating and/or voting.
Ark: A quick review
The Ark network is a blockchain that aims to create a whole ecosystem of linked chains with endless use cases that makes it highly flexible, adaptable, and scalable.
- The number of delegates on the Ark network is just 51. In the original DPoS networks such as BitShares, the number of active delegates is 101. However, Ark reduced that to 51 to improve the communication process within the system and enable the team to run a stable platform.
- Ark is a decentralized platform. The fact that users can only vote for a single delegate at a time implies that centralization of power is not encouraged within the ecosystem.
What is Ark?
Ark is a secure and decentralized platform that aims to make the adoption technology easier and to increase massive adoption of the technology. The primary objective of the project is to create an ecosystem of interlinked chains and a virtual spider web of limitless use cases, making Ark a very flexible and scalable platform.
The platform is one of the fastest in the crypto space, with a block time of eight seconds. The fast transaction speed is achieved via the SmartBridge functionality which allows them to off-load non-essential functions of hundreds of side-chains.
The Ark network usually serves as the intermediary between different chains, making it possible for them to communicate with each other and triggers events across chains, something that no other blockchain can do at the moment.
The Ark SmartBridge is easy to implement on a chain and cryptocurrency exchanges such as Coinbase and others could benefit from the feature. The exchanges utilize encoded listeners to serve as a medium for transactions carried out via SmartBridge while also allowing them to charge their regular transaction fees.
With the SmartBridge Technology, each coin has the potential to become very powerful and the apps developed on any blockchain could reach a greater audience.
How to make passive income from Ark
- By becoming a delegate
- By voting for a delegate
How to become an Ark delegate
Ark is known for using a consensus method called the Delegated Proof-of-Stake (DPoS). This model allows Ark coin holders to vote for representatives who are tasked with validating transactions and maintaining the integrity of the blockchain. The DPoS model is similar to Delegated Byzantine Fault Tolerance (dBFT) with the exception that DPoS allows only one delegate to verify a block while in dBFT, 2 or 3 bookkeepers have to reach a consensus before a new block is generated.
- To become a delegate on Ark, you will have to register on the platform and take part in the community activities. Being a delegate means that you will have to be active, engaged and visible to the Ark community at all times.
- The second step is to build a delegate proposal. This is a significant step that would make people know you. The plan you draft should be your introductory material to the community. The members need to know you and about your experience with Ark.
- The delegate is expected to take part in network testing. Delegates are encouraged to partake in testnets, help improve the network, look for bugs, and carry out other activities that could help the platform perform better. These set of events will make you popular within the Ark ecosystem, and more users would feel more comfortable giving you their votes.
- A delegate that takes the above steps and takes part in more community activities will find it easier to build and grow an Ark team. You can make a passive income as a delegate once the community members trust you with their votes. By verifying the blocks afterward, you will be rewarded.
How to vote on Ark
Voters are Ark community members that choose the delegates that would verify the network blocks.
- Becoming a voter on Ark is straightforward. The first step is to set up an account and a wallet with the platform. Once that is complete, you can go ahead and deposit the Ark coins in the wallet.
- With at least one ARK token in your wallet, you should navigate to the Votes tab on the platform. Proceed to add a delegate and choose the options made available from the drop-down.
- Once you have chosen a delegate, the name would appear on your delegate list. Click on vote and confirm it, with 1 ARK coin deducted from your wallet afterward. After voting for a delegate, it is essential to keep tabs and see if he/she is keeping up with the promises made. The representative will pay you a dividend once he/she is rewarded for verifying a block.
- Should in case delegates carry out their functions poorly or use their authorities to perform activities against the will of the voters, votes could be rescinded and assigned to a new representative. This is to help ensure the security of the network.
- The Ark network allows a wallet to vote for just a delegate at a time. This is to ensure that the voting process does not become centralized. For a user with a thousand Ark coins, they have the potential to cast a thousand votes but only to a single delegate.
For delegates on the network to make passive income, they would have to get the votes of users which would allow them to verify blocks and earn rewards in the process. Voters meanwhile could gain by staking their votes on a delegate, who will, in turn, pay a dividend to the voters after earning rewards.
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Here are links to find valuable info on Ark