At ParaState we do not rest on innovating but push ourselves to always be one step ahead on the technological forefront, especially when it comes to complementing Ethereum. After all, we are not a rival or competitor of the industry’s leading public blockchain network.
For this reason, and following our philosophy of bringing the best of the next Ethereum 2.0 update to the huge public eager to experience the advantages of the new technical capabilities and services that ETH 2.0 will offer, we have created SafeStake.
Think of SafeStake as a service provider for low-input ETH 2.0 staking, with the security and technical enhancements that only ParaState can offer. In other words, SafeStake is a trust minimized middle-layer fostering the decentralization of ETH 2.0 staking.
And in this new ecosystem that we are building with SafeStake, there is a very important main actor to take into consideration that moves this entire economy: The STATE token.
We have recently begun to learn a little about our native token, and the utilities and powerful benefits it offers around the ParaState ecosystem for any holder of STATE tokens.
If you want to learn more about the STATE token, you can read our post dedicated to this important topic:
The Token economics of ParaState
While our tokenomics have not generally changed, it is true to say that new benefits continue to be added as the ParaState infrastructure continues to expand across the industry.
With SafeStake, the power of the STATE token is shining throughout the industry, since our solution for the safest and lowest threshold ETH 2.0 staking (only 8 ETH instead of the 32 ETH required to be a validator) will allow the economy to move around STATE.
At this point we want to remind you that one of the utilities of STATE established in our technical document is precisely the collection of fees in STATE tokens for taking advantage of ParaState’s technical capabilities.
Thus, first of all, all nodes that wish to register as operators in SafeStake must hold a minimum amount of STATE tokens. In turn, ParaState DAO will collect 10% in protocol fees from operator service fees, and a 5% protocol fee from validator earnings towards the treasury for network security.
Second, validators that stake 32 ETH need to pay 25 STATE/month to each operator as a service fee. Also, to set up a validator one has to do a minimum 4 operators setup, which will be required to pay 100 STATE per month. However, if a validator stakes 8 ETH or 16 ETH, it will be charged a discounted service fee pro rata and required to pay less than 100 STATE per month.
SafeStake will be under the governance of the ParaState DAO. Therefore, the maintenance — the responsibility to ensure the governance of the staking network continues to function under the secure technical foundations according to which SafeStake was conceptually conceived — will be the absolute responsibility of the STATE DAO.
This will guarantee more transparency in making key decisions to improve SafeStake, introduce updates and scale according to the requirements of ETH 2.0.
As you have been able to appreciate, the utilities of our STATE token continue to expand as our ecosystem also expands in the industry. ParaState continues in its vision of building a better world with blockchain technology under technical parameters in accordance with the current demands for the use and deployment of decentralized applications fully compatible with Ethereum.
SafeStake is our latest secure, scalable and decentralized use case for ETH 2.0 staking, ensuring investors not only have low barriers to access this rapidly growing economy that is moving around staking on the industry’s leading blockchain network, but also the peace of mind of knowing that your funds will be in a secure environment with the best decentralized technical stack available on the market.
ParaState is a multi-chain smart contract platform that provides full compatibility between Ethereum, Polkadot and other Substrate-based chains, as well as other chains wanting to provide Ethereum compatibility through its next-gen runtime infra EWASM.
Parastate is participating in ETH2.0 Staking with a new tech stack called SafeStake, a trust-minimized, middle-layer fostering the decentralization of ETH2.0 staking. SafeStake is a non-custodial infrastructure for distributed validator technology written in Rust, implementing HotStuff consensus and Threshold signing architecture to provide more robust security for ETH 2.0 staking.