Earning Passive Income With Injective Blockchain: A Guide to Staking on DeFi

Prateek Tripathi
8 min readAug 31, 2023

You know that cryptocurrency you’ve been hodling for ages, waiting for the price to skyrocket so you can cash out and live comfortably? What if I told you there’s a way to make that crypto work for you while you wait, generating passive income through a process called staking? If you’re holding Injective, one of the hottest new blockchain projects, you have the opportunity to stake your coins and earn rewards. In this guide, I’ll show you exactly how staking Injective works, the potential returns you can make, and a simple step-by-step process to get started. By the end, you’ll have your Injective working around the clock to generate income so you can stop watching the charts and start watching your rewards stack up. The best part? Your Injective is still yours — you’re just putting it to work when you’re not using it. Let’s dive in and unlock the potential of staking.

What Is Injective and How Does It Work?

Injective is a blockchain built specifically for decentralized finance (DeFi). It allows you to earn passive income through a process called staking. Here’s how it works:

How Staking Works

Staking involves locking up your INJ tokens for a set time period to help secure the Injective blockchain network in exchange for rewards. By staking your INJ, you become a validator node, adding security and stability to the network.

  • When you stake your INJ tokens, they are locked in a smart contract. You still own your tokens, but you can’t transfer or trade them.
  • The number of INJ you stake determines your validator status. The more you stake, the more transactions you validate and the higher your rewards.
  • You receive staking rewards in the form of INJ tokens. Rewards are distributed based on the number of INJ you have staked.
  • There is an unstaking period when you want to withdraw your INJ tokens. This can take up to a few weeks to safeguard the network. Plan ahead!

Staking allows you to put your holdings to work and generate wealth in a sustainable way. While it does require temporarily locking up your funds, the rewards and benefits to the network make it worthwhile. The Injective blockchain relies on validators like you to keep it secure and running smoothly. By contributing, you get to support the growth of DeFi and share in the network’s success.

In the end, staking with Injective is a win-win. You earn more INJ just for holding it, and the blockchain gets a more robust, decentralized network of validators powering it. All thanks to the power of staking!

Benefits of Staking Your Injective

Staking your Injective is one of the smartest things you can do. Not only does it secure the network, but it comes with some sweet benefits for you.

Increased Earnings

When you stake your INJ, you earn staking rewards for helping validate transactions. The more INJ you stake, the higher your rewards. Staking rewards are distributed proportionally to all stakers, so you get a percentage of the total rewards pool based on how much INJ you’ve staked.

Compounding Returns

The staking rewards you earn get added to your staked amount, so you start earning rewards on your rewards. This compounding effect causes your staked INJ and rewards to snowball over time. In a few years, your staking rewards alone could be a nice passive income stream.

Securing the Network

By staking your INJ, you help secure the Injective blockchain network through validating transactions. The more people that stake, the more decentralized and secure the network becomes. You’re contributing to the strength and stability of the network.

Flexibility

Your staked INJ is not locked, so you can unstake at any time if you need access to your funds. However, the longer you stake continuously, the higher your rewards. Staking for at least a few months at a time is ideal for maximizing your returns.

Staking your Injective is a win-win. You earn passive income, the network becomes more secure, and your staked INJ has the potential for solid growth over time through compounding returns. Why not put your INJ to work for you today? The future you will be glad you did.

Staking Requirements and Setting Up Your Injective Wallet

To get started staking INJ, you’ll first need to set up your Injective wallet. This will allow you to store your INJ tokens securely and stake them to earn rewards.

Requirements

To stake INJ, you’ll need a few things:

  • INJ tokens — You’ll need a minimum of 10 INJ to get started staking. The more INJ you stake, the higher your potential rewards.
  • A compatible wallet — The Injective web wallet, Injective Mobile wallet (for iOS and Android), or a hardware wallet like Ledger or Trezor. Software wallets are convenient but less secure. Hardware wallets offer the best security for your funds.
  • An Injective account — Create an account on the Injective staking portal. Your Injective wallet address will be connected to this account.
  • A stable internet connection — To stake INJ, your wallet must stay online and connected. Offline wallets will not earn staking rewards.

Setting Up Your Wallet

Once you have your INJ tokens and the necessary equipment, you’re ready to set up your Injective wallet and start staking:

  1. Create an Injective web wallet or download the Injective Mobile wallet app. Follow the prompts to set a strong password and backup your recovery phrase.
  2. Purchase INJ on an exchange like Binance, KuCoin or Uniswap and transfer them to your Injective wallet address. Double check that the wallet address matches exactly before confirming the transfer.
  3. Create an account on the Injective staking portal and enter your Injective wallet address. This links your wallet to your staking account so you can start earning rewards.
  4. In your Injective wallet, tap “Stake INJ” and enter the amount of INJ you want to stake. The minimum is 10 INJ. Click “Start Staking” to confirm.
  5. Your staked INJ will now start earning rewards, paid out in INJ. Rewards are distributed daily and will accumulate in your wallet balance.

That covers the basics to get your INJ staked and working for you. Be sure to keep your wallet online and secured to maximize your rewards. Let me know if you have any other questions!

Maximizing Your Injective Staking Rewards

To get the most out of staking your INJ tokens, focus on a few key strategies.

Choose a Reputable Validator

Do some research on the validators available in the Injective network and choose one with a proven track record of high uptime and returns. Look for validators that are active in the Injective community and committed to the network’s success. The validator you choose will directly impact your staking rewards, so take time to evaluate options carefully.

Stake Longer for Higher Returns

Staking for longer lock-up periods, like 6–12 months, will yield higher APRs than shorter terms of 1–3 months. If you plan to hold your INJ tokens long-term anyway, staking for longer is an easy way to maximize your returns.

Claim and Re-Stake Rewards

Be sure to claim your staking rewards as they accrue and re-stake them to compound your returns. The power of compounding is one of the advantages of staking, so take full advantage by re-staking rewards to generate even more rewards.

Diversify Across Validators

To reduce risk, you may want to split your INJ tokens across multiple validators. That way if one validator’s returns decrease or they experience downtime, your entire stake isn’t impacted. Diversification is a tried-and-true method for managing risk in investing.

By choosing reputable validators, staking for longer terms, claiming and re-staking rewards, and diversifying across validators, you’ll be on your way to making the most of your INJ staking and earning solid passive income. The Injective network and its community are the foundation for these staking rewards, so every INJ holder has the opportunity to support the network and earn returns. Make your INJ tokens work for you through the power of staking.

Frequently Asked Questions About Injective Staking

So you’ve decided to put your INJ to work and stake it to earn rewards. Great choice! Staking is a simple way to generate passive income from an asset you already own. However, you probably have a few questions about how it all works. Here are some of the most common FAQs about staking INJ.

  • How much can I earn from staking INJ? The staking rewards will vary over time based on the total amount of INJ staked across the network. Historically, annual staking yields have been between 7–15%. Your earnings will depend on the amount of INJ you stake and the current staking yield.
  • Do I need any special equipment to stake INJ? No, staking INJ does not require any specialized hardware. All you need is an Injective wallet to hold your INJ tokens. As long as you have INJ in your wallet, you can stake it to earn rewards.
  • Can I stake and unstake INJ at any time? Yes, your INJ tokens remain liquid even when staking. You can stake and unstake at any time with no lockup period. Your rewards will simply stop accruing when you unstake. When you re-stake, you will start earning rewards again.
  • How often are staking rewards paid out? Staking rewards are calculated and distributed continuously in real-time. As soon as you stake your INJ, you will start earning rewards instantly and see your balance increasing. Rewards are automatically compounded, meaning your future rewards will be based on your new, higher balance.
  • Is my staked INJ at risk? When staking INJ, your tokens always remain in your own wallet, so you maintain full control of your funds. However, while staking, your INJ cannot be transferred or used for trading or payments. As long as your wallet remains secure, your staked INJ and rewards are not at risk. Unstaking will unlock your full balance to use as you wish.

Staking INJ is an easy, low-risk way to put your tokens to work and generate passive income over time. If you have any other questions about staking INJ, be sure to check out Injective’s documentation or ask the community for help. Happy staking!

Conclusion

So there you have it, a blueprint to get started earning passive income through staking on the Injective blockchain. The rewards may seem small at first but will compound over time as the value of INJ increases and as you re-stake your earnings. While staking does require an initial investment, the potential upside and ability to generate income from your holdings is huge. If you believe in the future of decentralized finance and want to support a blockchain enabling unrestricted access to financial markets, staking on Injective is a no-brainer. Take the plunge, stake your INJ and start earning today. The future is decentralized finance, don’t get left behind!

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Prateek Tripathi

Introducing Prateek Tripathi, a tech-savvy individual with a passion for all things crypto, blockchain, and coding.