What is
The act of holding and locking up cryptocurrency tokens in a wallet to support network operations and earn rewards.
The act of holding and locking up cryptocurrency tokens in a wallet to support network operations and earn rewards.
Common questions about this topic
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Providing liquidity on Ergo depends on the current active DEX or AMM venue. In general, you deposit equal value of two assets into a pool, receive LP tokens representing your share, and earn a portion of trading fees. Spectrum Finance is historical/frozen since February 2024, so verify the active venue, contracts, liquidity depth, and withdrawal process before depositing funds.
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from a current exchange or verified venue, then make a small test transaction. After that, explore NFTs, mining, DeFi references, or the developer stack if you're a builder.
Proof-of-Work provides the strongest censorship resistance because anyone can mine without permission. Unlike PoS where validators can be identified and pressured, PoW miners are anonymous and replaceable. The energy cost creates a real-world anchor that can't be captured by regulators or insiders.