How to Stake TRON in 2024

Founded in 2017 by the non-profit company Tron Foundation, TRON represents a blockchain-based platform focusing on the entertainment industry.

Lightning-fast transactions, low fees, and the support of Justin Sun, the CEO of the company and quite a famous persona in the blockchain industry, have made TRON one of the most popular platforms among cryptocurrency enthusiasts.

In addition, TRON staking has enabled the supporters of the project to make passive income by simply holding its tokens. In this article, we are going to discuss how this process works, what benefits one may expect to get from it, and review some of the platforms that support this option.

Top TRON Staking Platforms

	Name	Score	Visit	Disclaimer
	1Kraken	7.6	Visitkraken.com
	2Kucoin	7.8	Visitkucoin.com
	3Binance	9.1	Visitbinance.com

What is TRON Staking?

In the broad sense, staking refers to the process of locking your assets on a PoS-based blockchain for the sake of supporting the underlying network and earning rewards.

Unlike traditional PoS-based networks, TRON relies on the delegated proof-of-stake consensus mechanism. This means that in order to stake assets, users have to delegate them to one of the so-called Super Representatives (SRs) who are responsible for running the nodes and supporting the network.

Who are Super Representatives on TRON?

In a nutshell, these representatives act as network validators. They produce blocks and validate transactions while keeping the network secure.

For their efforts, they earn rewards that fall into two broad categories:

• Block rewards - For every newly created block, SRs earn 16 TRX. All other income is subject to distribution among voters who support these representatives. Thus, each of the voters gets a reward corresponding to his or her voting ratio after deducting the commission.

• Vote rewards - This is another part of the reward that SRs earn upon every block they create. It consists of 160 TRX that they get for themselves and 160 TRX more that they distribute among voters proportionate to their votes.

Also, it’s worth adding that there are only 27 super representatives who produce new blocks and keep track of all translation history. Those candidates who are ranked 28th to 127th are also considered SRs. Although they do not produce any blocks, they are still eligible for earning voting rewards.

TronScan: Each of the 27 Super representatives gets an equal chance to produce new blocks on TRON

How Does TRON Staking Work?

In short, the process of TRON staking works in the following way:

1. Users who hold TRX, the native token of the TRON blockchain, delegate these tokens to SRs.

2. SRs, in turn, stake tokens in the network on behalf of token holders. Thus, they get a chance to create new blocks, validate transactions and contribute to the overall network security.

3. For good work, SRs get rewards and distribute them across all the delegators proportionate to their share.

4. If SRs misbehave and, let’s say, validate double-spent transactions, their rewards don’t get slashed like on other networks. Instead, they simply get removed from the voting process.

Staking vs Mining

Historically, the first cryptocurrency Bitcoin relies on the Proof-of-work (PoW) consensus mechanism which implies securing the network by mining. According to the rules of this system, network participants compete with each other while trying to solve complex mathematical puzzles.

Although such an approach has proved to be pretty secure, it also comes with a number of drawbacks. Some of the worst disadvantages include excessive and useless electricity consumption. Other negative aspects refer to slow transactions and high network fees.

In 2012, two blockchain enthusiasts, Sunny King and Scott Nadal, came up with an alternative solution aiming to solve these problems. The new algorithm called Proof-of-Stake chose a block validator based on the number of coins that a user possessed.

Unlike Ethereum which was initially running on PoW and transitioned to PoS only after a long and complicated set of decisions, TRON developers chose PoS from the very start. Thus, the network has proved to be scalable and energy-efficient.

TRON Staking - Useful Words to Know

• Super Representatives - These are block producers on the TRON network elected by voting. There can be only 27 super representatives at any moment in time.

• Node - In regards to TRON, this is one of the computers with a specific piece of software that supports the network. It verifies transactions in each block and keeps the network secure.

• Staking rewards - These are the coins that are released into the network with every newly created block and distributed across validators proportional to their contribution.

• Smart contract - A piece of code running on the blockchain and specifying the conditions of a deal between two or more parties. Once the conditions are met, the contract automatically transfers funds in accordance with its setting.

How to Stake TRON

There are a few different approaches to TRON staking. As they differ in complexity, they also possess their own set of unique traits and requirements that one should be aware of.

In this section, we are going to review three of the most popular ways of staking TRON to give you a broad understanding of the available options and to help you make the right choice.

1. Staking TRON on a Centralized Exchange - Easy

Historically, centralized exchanges (CEXes) have been dominating the cryptocurrency market as a means of buying and exchanging crypto.

The business approach of such platforms strongly resembles traditional banks. They store all the users’ funds in a single vault and thus they can control these assets which may result in a counterparty risk.

Yet, CEXes also remain the most convenient solution as they significantly simplify the onboarding process, especially for the novices.

What are the benefits of a CEX?

• Convenience - CEXes usually feature user-friendly interfaces making them pretty simple to navigate. Such convenience is indeed very helpful for newbies.

• Customer support - If users face any issues while using a CEX, they can always reach out to its support team to help them sort out their questions.

• All-in-one solution - In addition to the possibility to buy and sell crypto, centralized exchanges usually offer an array of associated services and tools. This makes them particularly convenient for those who want to try and grow their wealth or explore NFTs.

• Educational resources - To help investors who are only just joining the crypto market, CEXes often provide a plethora of educational information in the form of guides and articles.

• Security - Centralized exchanges typically feature a high level of security as they store the majority of end-users’ assets on cold wallets with no access to the internet.

• Transparency - For all their crypto-earn products, CEXes clearly display how much users will earn making it easier to estimate your rewards and to report to the tax services.

However, despite all these advantages, CEXes also come with one serious drawback. Due to their centralized nature, they deprive users of true ownership over their own funds.

This may result in severe money losses should such an exchange get hacked or go bankrupt. Therefore, thoroughly assess your tolerance to such risks before making a final decision. Luckily, such cases are pretty rare, so you may still test your luck if you prefer convenience.

In one of the following sections, we are going to give more details on how you can get engaged with TRON staking on some of the most popular CEXes.

2. Delegate TRON to a Validator - Intermediate

If you prefer self-custody over the benefits of a centralized entity, then you may try to delegate your TRX tokens to a validator. Such a method is more complicated, though, as it requires specific technical skills.

As for ROI, it is as moderate as in the case of a CEX. Therefore, it is a question of convenience and your tolerance to the counterparty risk. If you are not ready to give up your private keys and want to have full control over your assets, consider delegating your tokens to SRs.

How to delegate TRON to a Super Representative?

Here are the basic steps you need to perform:

Step 1. Set up a TRON wallet

Some examples of hot wallets include a native TRON wallet Tronscan, TronLink, Trust Wallet, and imToken. For higher security, you may also try TRON staking through a cold wallet Ledger.

Step 2. Find a trusted validator

Do thorough research to find a Super Representative that meets your expectations in terms of reputation, security, and the size of rewards. You may find the official list of all SRs on Tronscan.

Step 3. Delegate TRON to a selected validator

Though different wallets have different interfaces, the basic principles remain the same. Open your wallet that has some TRX tokens and click on “Stake”. Select a validator in the drop-down menu and confirm the transaction.

TRON staking for fees reduction

If you are an active TRON user, delegating your tokens to a Super Representative may also result in a significant reduction in transaction fees. In particular, this concerns TRON-based stablecoins such as USDT.

Initially launched as a key rival to Ethereum, TRON has managed to keep its fees at a pretty low level in the first years. However, as the popularity of the network grew attracting more users, the fees have grown as well.

According to GasFeesNow, the fees for transferring USDT on TRON range between $1 and $2 per transaction at the time of writing. This sum may be fine when you send a large sum of money but totally inappropriate for microtransactions.

The size of transaction fees on TRON depends on the two key elements of this blockchain:

• Energy that is needed for executing smart contracts

• Bandwidth that is needed for everyday transactions within the network

The higher energy and bandwidth you have, the lower your transaction fees. As you may guess, TRON staking can help you increase your reserves for free.

In the screenshot on the right, you may check how much energy a given transaction requires (Tronlink). On the staking tab, you can estimate how many TRX you should put at stake so as to minimize these expenses.

3. Becoming a TRON Super Representative - Hard

Finally, if you are a strong supporter of the TRON network, you may try to earn some passive income as a Super Representative.

Note that this position is not only complicated from a technical point of view, but it also requires due diligence while performing network governance and an extensive network of other users who will delegate their tokens to you.

TRON Staking Options Compared

Where to Stake TRON

Check our pick of the best TRON staking platforms along with some brief guides on how to make use of this feature to help you move around.

1. Kraken – Best for Reliability

Being one of the top five centralized cryptocurrency exchanges, Kraken acts as a pioneer in many areas. Established in 2011, it remains one of the world's most reliable and trustworthy platforms.

At the time of writing, it supports 220+ cryptocurrencies offering an additional benefit for users who decide to try staking any assets on the platform. In addition, it provides its users with access to various instruments within the same ecosystem.

Kraken developers have managed to create a clear and intuitive interface, which non-tech-savvy users can easily operate. Now the platform users include proficient traders and cryptocurrency enthusiasts of different levels. Besides, the Kraken exchange charges reasonable fees making its offer even more attractive.

When Kraken launched TRON staking in January 2022, it enabled users to earn up to 9% APR annually. At the time of writing, the TRON staking APR varies from one month to another. In general, it equals 2-7% with rewards being distributed on a biweekly basis.

Citizens of the USA, Japan, Canada, and Australia can’t participate in staking, though. Therefore, it’s recommended to check the geo-restrictions first when considering this revenue stream.

How to Stake TRON on Kraken

First, you should register on the platform to take advantage of the staking feature and pass the verification procedure. After that, buy TRX or deposit the cryptocurrency to be able to start staking.

Step 1: Go to the Earn section

Click on the relevant section as shown in the screenshot below.

Step 2: Check your staking balance

Make sure that you have at least 1 TRX at hand.

Step 3: Start staking TRON

Scroll down the list to find TRON and press the “Stake” option as shown in the picture below. Check the terms, enter the amount, and finalize the operation.

2. KuCoin – Best for Flexibility of Choice (Soft Staking)

KuCoin is a prominent cryptocurrency exchange praised for its expansive selection of 600+ cryptocurrencies which makes it a favorable choice among many traders. With a global presence across more than 200 countries, the platform has managed to grow its user base which now covers more than 8 million investors.

Having added staking services in 2019, KuCoin rapidly attracted over 300,000 users to this service. At the time of writing, the platform enables staking for more than 50 coins, including TRON.

To stand aside from other exchanges, KuCoin has introduced a unique approach called soft staking. It eliminates the necessity to lock your assets for a specific period and thus offers a huge level of flexibility. Thus, users can easily withdraw their funds during market downturns and stake them back when the market trend is favorable.

The two TRON staking products that don't require locking assets provide an APY of 2.2% and 3.13% respectively. For those who choose to lock their funds for 14 days, the platform offers an APY of 5.27%.

In addition, it's important to note that KuCoin is not licensed to operate in the United States. Therefore, American users exploring crypto-related services may need to explore alternative exchanges.

How to Stake TRON on Kucoin

Note that only registered and verified users can participate in the staking activity. The Standard Identity Verification takes 3-5 minutes only and is sufficient to start staking TRX. Sign up to KuCoin and then follow the steps below.

Step 1: Use the mobile app for easier verification

Users can complete KYC verification within several minutes using the Kucoin mobile app. Not only this method is easier, but it also provides a higher pass rate.

Step 2: Click on the “Earn” tab on a taskbar.

Select “Kucoin Earn” from the drop-down menu. After that, select “Staking” and find TRX in the list of available cryptos.

Step 3: View the terms of staking and subscribe.

Enter the amount you wish to stake, check all the terms once again, and click on the “Subscribe” button to finalize the operation.

3. Binance – Best for Diversity of Tools and Features

Without a doubt, Binance is an unparalleled leader among cryptocurrency exchanges. It boasts the highest trading volume worldwide, an extensive range of trading options, and advanced features.

Operating through both desktop and mobile interfaces, Binance offers a plethora of trading tools featuring a diverse set of market charts and cryptocurrencies. Its users get access to an array of trading tools including futures, options, and other order types. Yet, some of these offerings are restricted within the United States. E.g. only 150 cryptocurrencies are accessible within this region while the NFT marketplace is not accessible at all.

As for staking, Binance offers 100+ cryptos with TRON staking being one of those options. Users can select flexible staking with the possibility to unstake funds when they wish. APR is 1.6% in this case. Alternatively, there are also 30, 60, 90, or 120-day staking periods with higher APR.

The rewards depend on the duration and equal 3.2%, 3.5%, 4%, and 4.2%, respectively. It is worth noting that the yield was much higher when the product was launched in 2020 as it provided up 20.58% APR at that time.

How to Stake TRON on Binance

Just like many other centralized exchanges, Binance requires its users to pass KYC before providing them with full access to all the features. Register on the platform first and submit all the required documents to start staking TRON.

Step 1: Visit the staking page

Click on the “Finance” tab in the top menu and select “Simple Earn” from the drop-down menu.

Step 2: Select the TRON staking period

Find TRX in the list of available assets, select for how long you want to stake i,t and click on the “Subscribe” button on the right.

Step 3: Start staking TRON

In the pop-up window, specify the amount and the duration. Agree to the Terms and Conditions and finalize the process by clicking on the “Confirm” button.

TRON Staking Platforms Compared

How Much Can You Make Staking TRON?

The amount you can earn through TRX staking varies with respect to the chosen staking platform and method. For instance, Binance provides around 3.5% APY, while delegating your tokens to a Super Representative often yields approximately 5% APY.

If you become a Super Representative yourself and manage to convince a large number of TRX holders to vote for you, your rewards may be the highest. There is no exact estimate of the APY as it depends on many factors.

Also, don’t forget about the overall market volatility. TRON is not a stable asset. Therefore, your earnings will strongly depend on the current market conditions and the TRX price.

Is There a Downside to Staking TRON?

Staking TRON involves certain risks that need careful consideration:

• Market Volatility - As usually happens on the crypto market, volatility represents a significant risk. Holding a non-stable asset combined with potential drops in its value during a lockup period can lead to effective losses, even if you're earning high interest.

• Lockup Period - Most staking platforms impose a lockup period disabling you from accessing your funds for a few days or months. This lack of flexibility can prevent you from responding to market changes.

• Payment delays - While many platforms promise daily payouts, delays can still occur sometimes as rewards may be a few days late.

• Impact of changes in product development - Network changes and votes can impact the network operations, potentially causing negative sentiment and affecting token prices. This could result in a lower estimated APY for your staked TRON.

Unlike other systems, there is no slashing risk in the TRON network, though. If Super Representatives misbehave, they can simply be removed through community voting.

Should I Stake TRON?

Note that we do not offer any financial advice in this article, but cover some aspects you might consider while pondering this decision. The choice to engage in TRON staking is totally yours, and it’s important to evaluate carefully all the factors.

• Risk vs Reward - Staking TRON can be quite rewarding, but it also involves a high risk due to the overall market volatility. Carefully weigh the potential gains against the inherent dangers before you get involved in this process.

• Tax implications - Keep in mind that crypto earnings are considered taxable events in many regions. Neglecting taxes can lead to penalties, so ensure you understand your local tax regulations first.

• Skill level - Consider your familiarity with cryptocurrency staking. Beginners might find exchanges more user-friendly, while more experienced users could explore staking pools or even run their own nodes.

• HODL or Trade - Determine your investment strategy. If you plan to hold TRON long-term, staking might help you grow your holdings. On the other hand, if you actively trade, staking might limit your liquidity.

• Risk tolerance - Staking, like any crypto investment, carries many potential risks. Stake only as much as you can afford to lose.

• TRON-specific considerations - Explore TRON's history, security, and development. Stay informed about any protocol changes or potential vulnerabilities.

It's essential to gather information, conduct thorough research, and possibly consult financial professionals before making a decision.

Final Thoughts

To sum it up, TRON staking is a nice way of making passive income if you are a true supporter of this project and aim to hold its native currency long-term.

So far, centralized exchanges provide the most user-friendly and easy solution for those who want to stake TRX. Moreover, some of the platforms offer flexible staking options eliminating the necessity to freeze your funds.

Delegating TRX to a validator offers comparatively equal rewards but reduces the counterparty risk. You may securely store your funds on a self-custodial wallet and watch your deposit grow on a daily basis.

Finally, the most tech-oriented users may try to become Super Representatives of TRON and validate transactions along with other participants. This method is the most complicated from a technical perspective, but it also provides the highest returns.

	Name	Score	Visit	Disclaimer
	Kraken	7.6	Visitkraken.com

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