BitTorrent is probably a project most people have heard of, but don’t know much about. They have a host of products based on their decentralized torrent protocol and the fees are payable in their native BTT token. I had some BTT tokens, but they didn’t move much in price the entire time I held them and I finally sold them. I noticed recently that the BitTorrent team completed a redenomination of their token (1000 for 1) to increase supply to facilitate easier payments. They also released some new products and an updated roadmap, so I decided to buy a small position again at the new lower price, which now starts with five zeros after the decimal place. Well, I would buy some and then the price would go down even more and then I would buy some more. Each purchase was very small, but it eventually added up to a few hundred dollars.
Today I noticed that the tokens were up 74% in value, which pretty much brought me back to break-even. So I went on Twitter to try to find out why they were up so much. I didn’t see any good answers (as usual), but someone mentioned that they were staking their BTT, so that got me interested in doing the same. I often don’t even bother staking ERC-20 tokens because the Ethereum gas fees are so high, but I noticed that BitTorrent supported staking on the Tron network.
BitTorent Chain is a heterogeneous cross-chain interoperability protocol, which leverages sidechains for the scaling of smart contracts. Their chain supports digital assets on Ethereum, Tron, and BSC. The BitTorrent Chain is secured by seven validator nodes and BTT holders can vote which a validator by staking their tokens with the validator in return for a share of the fees. The estimated APY is currently around 50.3%, according to their rewards calculator.
The high 50% APY will decrease as more people stake their BTT, but it is pretty attractive for now. Now we just need to set up our wallet and load it up with some tokens.
BitTorrent Wallet is the site where you can see your balance, bridge assets in from other chains, and stake your BTT tokens. You will need to connect a wallet to the site. If you are using Ethereum or BSC, you could use MetaMask. I decided to go with the Tron network, so I had to install the TronLink browser extension.
Once you install the browser extension, you will have to create a new wallet and save your seed phrase, like usual. Once this was done I then sent my BTT from Gate.io to the address in TronLink. The Gate.io fee to send the tokens over the Tron network was 740,000 BTT, which seems like a lot, but works out to about $3.50, so that tells you how low the token price is. I did hope the fee would be a little less because the Tron network is pretty inexpensive to use, but so be it. I am sure that the same trasnaction on Ethereum would be way more expensive.
At this point I tried to stake my BTT tokens, and then I realized I would need some TRX tokens to pay for the Tron network gas fees (transaction fees). So I have to go buy some TRX and send them to my TronLink address as well. I never bought TRX tokens before because I wasn’t ever that excited about the Tron network, but as other networks get congested, Tron seems to be being used by more and more projects as another avenue, so maybe it is worth having a few TRX tokens for when I need them. I still wish more networks allowed users to pay gas fees is other tokens besides just their native token.
Once you have your BTT tokens and a few TRX tokens (10 or less will do), you are ready to his the Stake button in BitTorrent Wallet, which will bring up a screen like this:
Just choose a validator and click on vote. You can pick one at random, that’s what I did. They all offer zero commissions and have 100% uptime, so I wouldn’t know which one is better than the rest. Often times you don’t want to pick the biggest one because that doesn’t help the cause of decentralization, so I picked one somewhere in the middle.
I have now staked my BTT bag and will check back every now and then to re-stake whatever rewards I have. It is encouraging to see the renewed activity by the BitTorrent team and the new product releases.
These posts are for informational and educational purposes only and should not be construed as investment advice or a recommendation to buy or sell any tokens. In this series I am just outlining what I am doing to learn more about the crypto space. Just because I am comfortable doing this, that does not necessarily mean these activities are suitable for you. I have not received any compensation from any of the products or services mentioned herein. Please do your own research and stay skeptical. These markets are not normal.