The number of delegators on the Tezos ecosystem has increased tremendously since mid-2019, giving Tezos the highest staking ratio compared to other major Proof-of-Stake (PoS) networks.
According to a recent study published by Staking Rewards, a platform that provides access to all passive income opportunities with digital assets, the growth of Tezos delegators has reached about 300% since May 2019.
For clarity, verifying and signing transactions on Tezos is called baking, and those who perform this task are called bakers. To participate in baking, bakers are expected to have about 10,000 XTZ. Those who do not wish to bake can delegate their staking power to other bakers and block rewards will be shared. XTZ holders who give their coins to bakers are called delegators.
Per the report today, the number of delegators has been increasing steadily every month, resulting in about 80% of the total Tezos supply and 56,000 accounts currently participating in staking activities on the network. Interestingly, 42,000 accounts from the 56,000 hold more than 1 XTZ.
The relationship between bakers and delegators on the network contributes to the increased number of users willingly to transfer their staking power. As revealed in the study, on average, delegators stick to their bakers for 10 to 50 months.
Since its launch, Tezos only started recording a tremendous increase in its delegators’ growth rate around November 2019 as shown in the chart below.
As reported earlier, Tezos celebrated its 1 millionth block on June 17, a milestone for the project considering its bumpy start.
Founded in 2018, the Tezos blockchain has fared well to become one of the major projects in the industry with multiple positive developments and partnerships.
Tezos’ native cryptocurrency Tez (XTZ) is currently ranked as the 13th largest with a market capitalization of $1.85 billion. A Coinbase study in May revealed that crypto investors are buying XTZ more than Bitcoin and other cryptocurrencies in the market.
Read original at Coinfomania
Author: Abigail Michelle