IOTA will start distributing tokens for Assembly (ASMB) and Shimmer (SMR) on December 28th. How to participate and what else is important, we explain here.
A month after the initial announcement of IOTA Staking, the plan is becoming a reality: the IOTA Foundation has announced via blog post the start of the pre-staking period for Assembly (ASMB) and Shimmer (SMR), and the distribution of these tokens will then run for 90 days from December 28. The news sent IOTA’s share price sharply higher by just over 15 percent.
Staking at IOTA – this is how it works
To take advantage of staking on IOTA, you must have stored your IOTA on the official Firefly wallet. So if you still hold IOTA on accounts something of a crypto exchange, you must first transfer them to the Firefly Wallet. We also remind you to make sure you have the latest version of Firefly installed. There is then recently a menu item Pre-Staking, through which you register your IOTA for staking. It is possible (and advisable) to select Assembly (ASMB) as well as Shimmer (SMR) in parallel. If you do the pre-staking by December 28, you will be able to receive ASMB and SMR for a full 90 days afterwards. If you delay, your individual staking period will be shortened accordingly.
There are no fees associated with IOTA staking and staked IOTA can also be withdrawn from the staking pools at any time. Shimmer allocates 1 SMR per 1 MIOTA every 10 seconds over the 90 days. On the Shimmer website you can also find a calculator that shows how many SMR you can expect from IOTA staking. This is also true for Assembly (ASMB), where the calculator can be found here. For Assembly, 0.000004 ASMB is credited for every 1 MIOTA every 10 seconds for 90 days.
Watch out: In the IOTA Firefly Wallet you will be able to track how many ASMB and / or SMR you have earned through Staking from December 28. But Assembly and Shimmer will only become transferable and thus tradable when their networks go live. This is announced in the course of 2022. In order to avoid an unnecessary burden on the IOTA Tanglenet (“dust protection”), a minimum amount of 1 ASMB is required for ASMB and 10 million SMR for Shimmer. This is easy to achieve with Assembly with 1 MIOTA, but with Shimmer you have to register at least 14 MIOTA for the 90 days of staking to reach the minimum amount in SMR.
Is IOTA Staking worth it for ASMB and SMR?
The two projects Assembly and Shimmer are officially supported by the IOTA Foundation. The latter had recently made it clear that Shimmer is seen as a practical test for a decentralized IOTA 2.0. Whether monetary value will also develop from this is uncertain. Assembly, on the other hand, is designed as a commercial project and has already attracted $100 million in seed capital from investment funds. Behind Assembly is a German Smart Contracts Technologies AG with IOTA chief Dominik Schiener as co-founder. ASMB should one day define its value through use cases in fields like DeFi and DApps. But a prerequisite for this is probably an actually successful upgrade to IOTA 2.0 aka Coordicide to make IOTA decentralized.
Conclusion: Upbeat mood in IOTA due to Assembly and Shimmer.
The plus in the price curve of IOTA and the reactions for example on Twitter to the upcoming staking of Assembly and Shimmer show: IOTA HODLers see the action consistently positive and hope for success for ASMB and SMR. However, IOTA is currently at just under 1.30 US dollars, a far cry from the annual highs of 2.50 US dollars that were reached when the upgrade to IOTA 1.5 aka Chrysalis took place in April. The fateful question for the future trio of IOTA, ASMB and SMR remains when Tanglenet will become decentralized. After all, the ecosystem of IOTA 1.5 is still burdened by a central coordinator, which limits trust in smart contracts for DeFi, for example. IOTA 2.0 has been announced for years and skeptics doubt whether the new target date of 2022 can be met. From this perspective, Staking for Assembly and Shimmer further increases the pressure on IOTA developers to finally implement Coordicide.