Claiming to offer an annualized return of 120%? Matic staking mining first phase goes live, aiming to attract 80% of circulating tokens within a year

Blockchain scalability solution Matic Network has announced that the first phase of staking mining is now live, with the team claiming that early participants can receive an annualized return of 120%. In addition, the team has pledged to lock 70-80% of the total circulating supply of tokens in the staking mining program within a year.

Phase One Mining Launch

Matic Network is a Layer 2 scalability solution designed to alleviate the Ethereum network's burden during high transaction volumes. The project claims that its solution can process 4,000 to 10,000 transactions per second. As the project adopts a PoS consensus mechanism, progress in staking mining has been a focal point of token holders' attention.

According to a report by Coindesk, Matic Network announced on Sunday that the first phase of its staking mining feature is now live. The initial set of validation nodes for the phase one launch will be limited to deployment by the non-profit organization behind the project, the Matic Foundation. Users can stake tokens with this organization to earn mining rewards.

Taking Tezos, another project already running staking mining, as an example, it currently offers users participating in mining approximately 6% to 7% annual returns. To incentivize user participation in mining, Matic claims that early participants can receive a 120% annualized return. Furthermore, users who delegate tokens to the foundation early on may have the opportunity to become network validation nodes themselves in the future.

Aiming to Lock Up 70-80% of Circulating Tokens

Currently, the Matic Foundation has allocated 12% of the total token supply, approximately 1.2 billion MATIC, for the operation of the staking mining program over the next five years. The organization aims to attract 70-80% of the current market's total circulating supply of MATIC to be locked up in the staking mining program for participation in network governance within the next year.

As staking mining progresses to the next stage, Matic will open up external validation nodes for participation in network governance. At that time, Matic will actively seek reputable partners, similar to the project's partnership announcement last month. According to an official press release from May this year, Infosys, a $40 billion Indian tech company, has partnered with Matic to become an early validation node on the network. Bharat Gupta, head of the company's consulting division, expressed in an interview that participating in proof-of-stake network validation would provide Infosys with firsthand technical knowledge to develop and launch its own "privacy-centric public blockchain solutions."

It is worth noting that becoming a validation node requires staking a certain amount of tokens, but Infosys may not have purchased tokens on the market to become a validation node. The tokens staked are likely provided by Matic, meaning Matic holds tokens nominally rather than in actuality.