Stake with Phaeton to Generate a Passive Income

As the crypto society expands, many people have become aware of the many benefits offered by blockchain platforms. One of these benefits is “Staking”, which is a form of generating passive income.

This passive income is generated by being a validator of a specific cryptocurrency. To understand how to develop a passive income through staking, one must understand why staking is needed in the first place?


There have been concerns with the many Blockchain platforms requiring high levels of energy when performing specific tasks. Significant Blockchains such as Bitcoin consume a tremendous amount of energy for mining tokens or cryptocurrency.

In essence, the Bitcoin network operates on a Proof of Work (PoW) consensus algorithm, which requires a high level of computational power to solve complex mathematical functions. The purpose of solving these complex functions is to validate a transaction without the intervention of a third party. Therefore, the role of a consensus mechanism is to enable a decentralised ecosystem. Further, this consensus algorithm facilitates an incentivisation mechanism by providing rewards to the miners, the users who validate transactions.

But PoW is not the only consensus, and Bitcoin is not the only Blockchain.

Proof of Stake (PoS) is another consensus algorithm that has become extremely popular. It has been implemented in various Blockchain platforms in several ways. The traditional PoS consensus allows a person with the highest stake to become the validator. For validating the transaction, this user is rewarded in the form of native tokens of the platform.

The value of these native tokens grows over time, generating a passive income for the user.

However, there are certain limitations in PoS, such as centralisation, which is why further evolution of this consensus algorithm has been achieved.


Phaeton implements the Delegated Proof of Stake (DPoS) consensus. With this algorithm, the platform’s stakeholders have to outsource their work to other nodes or third parties. These third parties are then responsible for validating the Blockchain network transactions, and in return, they get rewarded.

The rewards are shared among the delegates and the stakeholders. It allows the Blockchain network to be more scalable and complete more transactions per second. Moreover, the delegates are chosen at random, which allows the network to be truly decentralised. Here, the node selected to become a validator must be an owner of Phaeton’s native token, PHAe.

A stakeholder puts their PHAe at stake and then delegates the validation activity to a randomly selected node that holds PHAe tokens. After the validation process and a block created, both the stakeholder and the node get PHAe tokens as a reward.

Compared to other Blockchain platforms that facilitate staking, Phaeton offers a sustainable alternative for staking and generating a passive income. The use of DPoS makes it an energy efficient Blockchain as well as a scalable platform. Furthermore, the Phaeton Blockchain is structured to support a sidechain architecture. Sidechains can be used to create separate small Blockchains that is connected to the main Blockchain. Therefore, the transactions or activity on the Blockchain can be segregated among these sidechains, allowing the network to be free from congestion.


Staking has become highly popular with the growing prominence of DeFi (Decentralised Finance) as the new financial system. Therefore, the Blockchain world has been flooded with many protocols offering such solutions but finding the right one is similar to finding a needle in a haystack.

Phaeton is unique among these platforms by becoming a future-ready solution. Staking on Phaeton is a secured and efficient means of generating a passive income.

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Phaeton utlilises Blockchain Technology to create sustainable communities for future generations using our own independent Blockchain platform.