On the Astar/Shiden Network, developers who build decentralized applications (dApps) have the opportunity to receive compensation through a process known as dApp staking. By engaging in dApp staking, developers can receive a basic income, which allows them to continue building and enhancing their dApps.
dApp staking on the Astar/Shiden Network operates similarly to staking on validators. However, in this new paradigm, individuals known as dApp stakers or nominators have the ability to nominate their Astar/Shiden tokens on specific dApps they wish to support.
At every block on the network, a portion of the rewards is allocated to dApp staking. This reward is then distributed between the operators (developers) of the dApps and the nominators. This mechanism serves as a powerful incentive for developers to build and deploy their dApps on the Astar/Shiden Network.
Benefits of dApp Staking on Astar/Shiden
Developer Compensation: Unlike traditional approaches where dApp developers need to rely on grant programs, token issuance, and fundraising efforts to generate income, dApp staking on Astar/Shiden provides developers with a basic income. As long as a dApp has been nominated, developers can receive a steady stream of rewards.
Increased Popularity, Increased Reward: As a dApp gains popularity and attracts more nominators from the community, the developers who built the dApp can receive a larger percentage of the block rewards. This incentivizes developers to create high-quality dApps that resonate with users and foster community engagement.
Reduced Dependency on Gas Fees: Building on other blockchains often entails paying substantial gas fees for transactions and interactions. However, on the Astar/Shiden Network, developers can receive compensation through dApp staking, minimizing their reliance on gas fees and making it more economically feasible to continue dApp development.
Note you need at least 500 ASTR tokens to stake.
Nomination Transfer allows stakers to move the entirety or portions of their nominations to other projects while skipping the unbonding period. This way, stakers don't have to sacrifice staking rewards in the unbonding period to support a project you are interested in.
DApp staking is designed to support the projects and developers in our ecosystem. Staking through dApp Staking is giving your vote to the project you want to support. Your vote (stake) will impact their earnings with the protocol.
Re-Stake the rewards after claiming
Re-Stake rewards feature allows stakers to claim staked rewards which will be automatically restaked on the same dApp. So rather than having to make two extrinsic calls and having to sign two transactions, users need to only make one extrinsic call to claim the rewards and those rewards are automatically reinvested.
Please refer to this section to learn more about participating.