Xumm Help Center

Does Xumm offer Staking?

How can I earn money with Xumm?

What is staking?

Generally, there are two types of staking in the blockchain space.
1) Crypto exchanges will allow you to lock up your tokens with them and pay you rewards for doing this.
2) Proof of Stake networks (Ethereum 2.0, Cardano, Tezos, etc.) allow you to lock up your tokens for the opportunity to validate a new block on the network for which you would receive a reward.

How does staking work?

Staking varies depending on which exchange you are dealing with, but generally it is similar to how a bank might give you interest on funds you "invest" with them. In many cases, the bank will use your funds to make money for themselves, then pay you a small amount from their profits.
In this case, you deposit your tokens into an exchange account and they use your funds to earn tokens from the blockchain. They keep the majority of the tokens that they "earn" and give you "rewards" for letting them use your tokens.
On a Proof of Stake (PoS) network it works a bit differently.
Basically, a validator "locks up" a bunch of coins to prove that they are committed to the blockchain. The PoS consensus mechanism randomly selects from the pool of validators to see who will get the opportunity to produce and validate the next block on the blockchain. The larger the staked amount, the higher the chance of been chosen to create the new block on the network.The validator that is chosen to create a new block, receives a reward so there is an incentive to stake more coins.

Can I earn rewards by staking on the XRPL?

No. The XRP Ledger is not a Proof-of-Stake blockchain. The XRPL uses the XRPL Consensus Protocol to validate transactions and does not rely on staking like a PoS blockchain does. The XRPL validation process is not a competitive based system, it is a cooperative based system.

Can I earn rewards using Xumm?

Since the XRPL does not offer an incentivization model for holders and all fees charged by the XRP Ledger are destroyed, there is no way generate returns from the network and Xumm is a self-custodial wallet that is completely free to use.
We do not charge any fees so there is no way for us to generate "rewards" for users.

How do other wallets/projects offer staking?

There are projects that have created various "staking" schemes on the XRPL. If you wish to participate in these schemes, please contact them directly for details on how they work and instructions on how you can enroll but please make sure that you fully understand how they plan to generate returns and only risk funds you are prepared to lose. Xumm does not endorse or support any staking programs.
Addition resources
If you are interested in learning more about how the XRPL Consensus Protocol works, check out this article: