While staking originated in the cryptocurrency sector, it can be applied to various asset classes, including real estate, infrastructure projects, renewable energy installations, and more. The key is that the asset should have high-yield potential and be suitable for co-ownership.

Profits are distributed based on the percentage of ownership each stakeholder has in the asset. For instance, if an investor owns 10% of the total stakes, they receive 10% of the profits.

As with any investment, staking involves risks. These can include market volatility, management inefficiencies, regulatory changes, and the potential for the asset to underperform. Due diligence and proper management can mitigate some of these risks.

Exiting a staking investment can be done by selling your stake. This might involve selling back to the pool or using a secondary market, if available. The terms of exit are clearly defined in the investment agreement.

Returns can vary widely depending on the asset and market conditions. Investors typically benefit from both regular income (e.g., rental income) and capital appreciation of the asset over time.

Staking can be suitable for a wide range of investors, especially those looking for alternative investment opportunities with high-yield potential. However, it’s important to consider one’s risk tolerance and investment horizon before participating.

The value of stakes is determined by the initial contribution and the subsequent performance of the asset. As the asset appreciates, the value of each stake increases accordingly.

Depending on the terms set by the management team or platform, investors may be able to increase their stake by making additional contributions during specified periods or rounds of funding.

The management team is responsible for the day-to-day operations of the asset, ensuring it performs optimally and generates expected returns. They also handle reporting, compliance, and distribution of profits.

To ensure legitimacy, conduct thorough due diligence. Verify the track record of the management team, review legal documents, understand the investment structure, and assess the potential risks and returns.

Traditional investments often require significant upfront capital and involve direct ownership of assets. Staking, on the other hand, allows collective ownership with lower individual investments, spreading both risk and reward among multiple stakeholders.

In the real estate sector, the minimum investment for each stake is determined by the staking platform. At STAKE Global Limited, one unit of our stake is priced at five hundred thousand Nigerian Naira (₦500,000). Investors have the flexibility to purchase multiple stakes, with the understanding that increasing your investment will correspondingly enhance your potential returns on investment

The staking period varies depending on the asset and platform. Some cryptocurrency networks allow flexible staking periods, while others might require you to lock your assets for a fixed term. In real estate, the investment horizon could range from a few years to several decades.

In cryptocurrency staking, some platforms offer flexible staking with no lock-up periods, allowing you to withdraw anytime. Others might require a fixed term. In real estate staking, withdrawing your investment might depend on the terms set by the crowdfunding platform, often tied to the sale or refinancing of the property.