Callisto Network, a currency developed by the Ethereum Classic team, is considered one of rapidly evolving platforms on the market. The successful launch of the coin was followed by the creator's decision to implement the Cold Staking protocol for CLO holders. Staking has been a widely popular feature for a variety of coins on the market, but in case you have not heard anything about it, Guarda will break down the basics of Callisto Cold Staking.
What is Cold Staking?
In general terms, cold staking is a Smart-Contract based protocol that rewards long-term holders of CLO (or other cryptocurrencies available for staking) with an interest. The investors are interested in staking as it is regarded as a form of passive income for one’s coins.
Cold Staking protocol is not related either to Proof of Stake or a consensus mechanism – it is a contract between Callisto and its users, distributing the percentage of mining rewards between the holders in proportion to the stake.
How does Cold Staking CLO work on Guarda?
Guarda Wallet allows implementing Cold Staking inside the application. To begin staking with Guarda and getting rewards for your CLO coins, it is necessary to follow several steps:
Choose the amount of CLO you would like to stake in Guarda Wallet. The possibility of staking becomes available after the coins are deposited. Click on Stake on the Receive page.
As the chosen amount of CLO gets deposited into the Staking Contract, these funds get locked for 27 days. During this period the staker cannot access their funds, withdraw or transfer them.
After the locking period is over, both the amount deposited and the staking reward are available for withdrawal. A Claim button will appear on the Receive page.
At this point, the staker has two options:
- Withdraw the sum
- Continue staking (this will lock your funds for 27 more days)
Please note: depending on how prolonged your stake is, the amount you get as a reward will be getting bigger.
Re-depositing funds during the lock period will cause a renewal of the contract, so depositing more in the Staking Contract is unadvised.
Protip: How to get more rewards for Callisto Staking?
According to calculations, it is more profitable to stake for the first month. After the reward is received, you can move the coins to another CLO address and deposit more.