ADX Staking: Everything You Need to Know
Learn all you need to know about ADX staking in this guide: what it is, how it started, what benefits it has and more!
We have already looked at the origins and utility of the ADX token, and now it is time to dive deeper into ADX staking - its history, evolution, role in the AdEx ecosystem, and benefits for stakers! Follow ADX’s exciting journey below!
Before we discuss staking in more detail, it is important to expand on the AdEx ecosystem, where the ADX token and ADX staking play crucial roles:
The AdEx ecosystem and role of ADX
The story begins in 2017 when the idea of AdEx was born, the ADX token was launched, and a successful ICO raised over $10 million. Just a year later, in 2018 we marked the launch of AdEx Network - an ad platform connecting publishers and advertisers directly, and the listing of the ADX token on major exchanges, such as Binance and Huobi, amongst others. The following year, 2019, was dedicated to further token listings (currently available on over 30 exchanges) and major platform improvements, which led to an impressive achievement of over 165 million impressions in its first year, making the AdEx platform the biggest payment channel on Ethereum!
The next year, 2020, marked major updates for the ADX token—an important part of the ecosystem serving as a staking, governance, payment, and rewards tool. We increased its value by upgrading it to allow for DeFi features, launching staking, and continuing to expand exchange listings.
2021 was dedicated to strategic planning for the future of AdEx - we announced plans for AdEx V5 with lower fees, expanded campaign settings, and enhanced security. Fast-forward to 2022, when we transitioned from an ad network to an advertiser-focused DSP (demand-side platform). 2023 was spent developing a blockchain DSP, and the AdEx Platform was officially released in June 2024, together with an upgraded ADX staking. What an exciting journey, right?
ADX Staking: past and present
Now let’s explain what ADX staking is before we go into its history, evolution and benefits.
What is ADX staking
ADX staking is a fundamental part of the AdEx ecosystem that empowers token holders to participate in the platform's operations while earning rewards.
By locking up your ADX tokens through the AdEx Staking Portal, you, as an ADX holder, contribute to the network’s security and reliability and receive generous incentives in return. This staking mechanism, deeply rooted in the concept of Proof-of-Stake (PoS), also enhances the integrity of AdEx by ensuring that validators have a vested interest in maintaining the platform's success.
Validators act as independent entities who use their computational power to ensure the security of the AdEx platform. They validate transactions and confirm whether interactions between advertisers and publishers are legitimate, as well as participate in the PoS (proof-of-stake) consensus mechanism of AdEx and lock ADX tokens as collateral. Using validators helps prevent ad fraud, double spending, and other issues and ensures agreement among network participants on the state of the blockchain.
Staking ADX tokens also gives holders voting power in the governance of the AdEx project by allowing them to have a say in the direction of development, new features, and other important decisions.
The ADX Staking story
The ADX Staking Portal was originally released in early 2020 while the original advertising platform was still in a private beta. The first available staking pool was the “Validator Tom”, operated by AdEx. This pool is still available for staking.
Over the years, the ADX token and the Staking Portal have undergone multiple upgrades, improvements, etc. For example, in the summer of 2020, the ADX token was upgraded to allow for DeFi functionalities and to become the first ERC-20 token with built-in flash loans. A second staking pool was introduced, the so-called Loyalty Pool, which was later retired to shift the focus back to Pool Tom. The Loyalty Pool was designed to enable users to stake $ADX without the need to lock their tokens for 20 days. This flexibility encouraged more people to move their ADX tokens from exchanges into staking, boosting demand for ADX. Additionally, the Loyalty Pool played a key role in developing a crucial feature in the ADX ecosystem: the decentralized governance system.
Later, in 2021, ADX staking was migrated to a new smart contract for further staking enhancements. Most recently, after the launch of the updated AdEx advertising platform, the Staking Portal got a facelift to keep up with the times.
But the sentiment has remained the same throughout the years: staking is here to stay and helps secure the AdEx ecosystem while rewarding ADX holders.
What is the role of ADX staking for the AdEx ecosystem
There are 3 main ways in which ADX staking supports the AdEx ecosystem. Let’s look at all three of them:
- Security and decentralization: By staking ADX tokens, ecosystem participants support the robustness and decentralization of an advertising network that is resistant to malicious attacks and centralization risks.
- Trustworthiness of validators: Validators are required to use their ADX tokens as collateral, a.k.a having skin in the game, which motivates them to act in the best interest of the ecosystem. This ensures their integrity and accuracy — or means penalties in case of malicious activities.
- Stability of the ADX token: The staking process reduces token volatility by taking tokens out of circulation.
Benefits of ADX Staking
There are multiple benefits for those holders who participate in ADX stakings, such as:
Governance participation
Holding ADX-STAKING tokens, which you receive in exchange for ADX tokens when staking, allows you to participate in governance votes. This way, you can have a say in strategic decision-making for the future and development of the AdEx ecosystem.
Staking rewards
Not only do you support the ecosystem by staking your ADX tokens, but you also receive rewards for doing so. The current annual yield (APY) is at 4.35% - so even when the market is down, you are still making money.
Upholding token value
ADX staking helps to enhance the utility of the ADX token and to provide additional value to ADX stakers, as opposed to non-stakers.
Additional incentives
ADX stakers can earn additional rewards from special initiatives (campaigns and promotions) organized by the AdEx team.
How to stake ADX tokens
Staking is done easily and quickly in 4 steps:
- Go to the AdEx Staking Portal
- Connect the wallet that holds your available ADX tokens—a browser extension (like Ambire Wallet or Ambire), another wallet via WalletConnect, or Trezor
- Choose the token amount you’d like to stake
- Confirm the transaction and start earning
ADX staking is also pre-integrated in the web and mobile versions of Ambire Wallet.
A step-by-step tutorial on how to stake for both of the above options is available here.
In conclusion
ADX staking isn’t just about the rewards for its users. Its extensive history and multi-faceted utility make it a vital part of the AdEx ecosystem. Thanks to it, ADX holders can actively participate in growing the ecosystem, shaping the future of AdEx, and ensuring the security of the platform.
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