What is Soft Staking
Soft staking represents a revolutionary approach to earning
crypto rewards. Essentially, it is a method where you earn passive income
from your cryptocurrency holdings without relinquishing control over your assets.
This concept is also known as flexible staking due to its risk-free nature.
The fundamental difference between soft staking and
traditional staking lies in the freedom it offers. In traditional staking,
you select cryptocurrencies using Proof of Stake (PoS) such as ETH,
ADA, SOL, or DOT, buy some, choose a staking platform, and lock
your tokens for the required period. In contrast, with soft staking, there is no locking period – you maintain full control over your assets.
Centralized exchanges typically facilitate the soft staking process.
When you participate, rewards are generated through
an on-chain staking proof mechanism of the blockchain and then distributed in
the native tokens of each to holders daily.
Reward calculations occur automatically, generally by
taking a snapshot of your holdings in your account.