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Staking and long lock-up periods - (no) reason not to stake?

 


A new survey has shed light on why cryptocurrency investors are reluctant to stake their cryptocurrencies.


Liquid staking platform Claystack surveyed 999 active investors from Europe, Asia and the United States with assets of $5,000 or more in proof-of-stake cryptocurrencies.


“The results confirm our belief that staking investors should not be forced into a lock-up period. We need a solution to maintain the benefits of staking while providing the ability to participate in the DeFi ecosystem. This is where liquid staking comes into play. We believe this is where the future of staking lies,” said Mohak Agarwal, CEO of ClayStack.


15% of respondents would use liquid staking to bypass the lock-up period . The participants can stake their cryptocurrency and use the amount in the form of a token for other purposes at the same time.

People who do not intend to stake cryptocurrencies do not let circumstances such as lock-up periods, hacks and technical risks influence their opinion.

45% would change their mind and be willing to stake if the return was 15% or more. Setting up a validator node is the most popular way to stake. Other popular options include using a third-party staking service or staking through an exchange.


The main reason respondents do not want to stake is because blocking the investments for a longer period of time represents too high a risk.


Another part of the respondents does not stake because they can achieve higher returns elsewhere. In addition, investors do not want the blocked tokensExpose to market volatility . According to the survey, the minimum amount required for staking is too high for many investors. In addition, many would like clear tax regulations.


Hacks are the number one concern when it comes to staking. However, validator risk, market volatility, opportunity costs and lock-up periods, and lack of liquidity are also among survey respondents' concerns.



A statistic from www.claystack.com

56% of people surveyed plan to stake in the next year. This includes people who have never poked before. Most of them plan to stake 20-30% of their portfolio and expect a 15% return.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action that the reader takes based on the information found on our website is entirely at their own risk.

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