Progressive staking is a method where users can increase their staking rewards based on the length or amount of their token holdings. The idea is to incentivize users to hold and stake their assets for longer periods, rather than just participating for short-term gains. In this approach, rewards might escalate over time or with increased investment. For example, staking for 30 days may yield lower rewards compared to staking for 90 days.
This encourages participants to commit their tokens for extended durations, creating a more stable environment for the network. Additionally, progressive staking can incorporate tiers, where users earn better rates based on certain thresholds. This structure not only benefits long-term holders but also helps in securing the network by reducing the likelihood of rapid sell-offs.
Overall, progressive staking is designed to promote loyalty among investors and enhance the overall health of the ecosystem. By rewarding longer-term staking, it aims to balance the interests of short-term traders and long-term supporters.