BLOCKCHAIN PROJECT REPORT ON

“TOKEN STAKING DAPP”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF

DEGREE OF
BACHELOR OF ENGINEERING
BY
SWARALI MHATRE
SWASTIK MHATRE
PRIYESH MHATRE

SUPERVISOR

MR. SAGAR YESHWANTRAO

DEPARTMENT OF COMPUTER ENGINEERING

PILLAI HOC COLLEGE OF ENGINEERING AND TECHNOLOGY,

PILLAI HOCL EDUCATIONAL CAMPUS, HOCL COLONY,
RASAYANI, TAL: KHALAPUR, DIST: RAIGAD, 410207
UNIVERSITY OF MUMBAI
[2024-25]
 Mahatma Education Society’s
Pillai HOC College of Engineering and Technology,
Rasayani-410207
2024-25

Certificate
This is to certify that the IOT Project Report entitled “Token Staking DApp” is

a bonafide work of Swarali Mhatre, Swastik Mhatre, Priyesh Mhatre

submitted to the University of Mumbai in partial fulfillment of the requirement

for the award of the degree of “Undergraduate” in “Computer Engineering”.

_____________________ ________________________
Mr. Sagar Yeshwantrao Dr. Rajashree Gadhave
(Supervisor) (Head of Department)
 Declaration
We declare that this written submission represents our ideas in our own
words and where others ideas or words have been included. We have adequately
cited and referenced the original sources. We also declare that we have adhered
to all principles of academic honesty and integrity and have not misrepresented
or fabricated or falsified any idea/data/fact/source in our submission. We
understand that any violation of the above will because for disciplinary action
by the Institute and can also evoke penal action from the sources which have
thus not been properly cited or from whom proper permission has not been taken
when needed.

Swarali Mhatre

Swastik Mhatre

Priyesh Mhatre

Date :
 Abstract

This project presents the development of a decentralized application (DApp) for token
staking, which allows users to lock their cryptocurrency tokens in a smart contract to earn
rewards over time. Built on blockchain technology, the DApp ensures transparency,
security, and immutability of staking operations. The system leverages smart contracts to
automate reward distribution, calculate returns based on staking duration and amount,
and allow for secure token withdrawals. A user-friendly interface facilitates the staking
process, offering real-time analytics on staking pools and reward structures. The
application integrates web3.js for blockchain interactions and MetaMask for secure
wallet connection. The DApp supports staking for a range of ERC-20 tokens, providing
flexibility and broad utility for decentralized finance (DeFi) participants.
Figure No. Figure Name Page No.

Fig 4.1.1 System Block Diagram 18

 Table of Contents

Content Page No.

Abstract i

List of Figures ii

1: Introduction 1
1.1 Introduction 2
1.2 Background 3
1.3 Motivation 5

2: Literature Survey 6
2.1 Basic Terminologies 7
2.2 Existing System 8
2.3 Problem Statement 10

3: Requirement Gathering 11
3.1 Software and Hardware Requirements 12

4: Plan of Project 13
4.1 Proposed System Architecture 14
4.2
5: Conclusion 22

References 23
 Chapter 1
Introduction
1.1 INTRODUCTION

The decentralized finance (DeFi) ecosystem has revolutionized traditional financial

services by introducing permissionless, transparent, and secure platforms powered by
blockchain technology. Among the many innovations in DeFi, token staking has gained
significant traction as a method for users to contribute to the network while earning
rewards. Token staking involves locking a certain amount of cryptocurrency tokens in
a smart contract for a specific duration, allowing participants to earn incentives based
on the staking pool and duration.Token staking is integral to the functioning of many
blockchain networks, particularly those using proof-of-stake (PoS) or delegated proof-
of-stake (DPoS) consensus mechanisms. It helps secure the network, validate
transactions, and foster community participation in network governance. As an
alternative to the resource-intensive proof-of-work (PoW) systems, staking has enabled
more energy-efficient and scalable blockchain networks. The aim of this project is to
develop a decentralized application (DApp) for token staking, leveraging the benefits
of blockchain technology, such as decentralization, security, and transparency. By
utilizing smart contracts, the DApp automates critical operations such as token locking,
reward calculation, and payout distribution, ensuring trustless and error-free
transactions. Smart contracts also eliminate the need for centralized intermediaries,
reducing operational costs and enhancing security. This DApp is designed to support
staking for ERC-20 tokens, a widely adopted standard on Ethereum and other
compatible blockchain networks. Users can interact with the DApp through a web
interface that integrates with blockchain wallets like MetaMask. The web interface
provides an intuitive user experience, offering real-time information on staking pools,
reward structures, and token balances, allowing users to easily monitor and manage
their staked tokens.The staking DApp also plays a vital role in driving liquidity for
decentralized networks, enabling users to lock up tokens, reducing circulating supply,
and enhancing the token’s scarcity. Furthermore, staking can incentivize long-term
holding, which contributes to network stability and token value appreciation.
1.2 BACKGROUND

The concept of staking is closely linked to blockchain technology, particularly within

consensus mechanisms like Proof of Stake (PoS) and Delegated Proof of Stake (DPoS).
Unlike the traditional Proof of Work (PoW) consensus algorithm, where miners solve
complex mathematical problems to validate transactions and secure the network, PoS
relies on token holders staking their assets to participate in the consensus process. In
PoS systems, validators are selected to propose and validate new blocks based on the
number of tokens they have staked, providing a more energy-efficient and scalable
alternative to PoW.The staking process is typically incentivized with rewards in the
form of native tokens. Users who stake their tokens essentially lock them in a smart
contract, which helps maintain the network’s security and decentralization. Stakers are
rewarded based on factors such as the amount of tokens staked, the staking duration,
and network participation rates.As blockchain technology has advanced, decentralized
finance (DeFi) has become one of the most prominent applications. DeFi platforms
enable users to access financial services—such as lending, borrowing, and trading—
without relying on traditional intermediaries like banks. Token staking has emerged as
an important element in this ecosystem, offering a way for users to earn passive income
while contributing to network operations. Popular blockchain networks like Ethereum,
Binance Smart Chain, and Polkadot have incorporated staking models to promote
network security and governance.

1.3 MOTIVATION
The development of a Token Staking DApp is motivated by several key factors. First,
the explosive growth of decentralized finance (DeFi) has created a demand for secure,
transparent, and decentralized platforms that allow users to earn passive income by
staking tokens. Unlike traditional financial systems, staking in DeFi offers a trustless
way to participate in network operations, helping secure blockchain networks while
earning rewards. Additionally, the environmental concerns around Proof of Work
(PoW) consensus mechanisms have driven the shift toward more energy-efficient
models like Proof of Stake (PoS) and Delegated Proof of Stake (DPoS), which this
DApp supports, promoting sustainability in blockchain operations. Another motivation
is the elimination of risks associated with centralized intermediaries, such as fraud,
hacks, and regulatory restrictions. By providing a decentralized staking platform, users
retain full control over their tokens, bypassing the need for third-party involvement.
Furthermore, the DApp is designed to drive financial inclusion by making staking
accessible to a global audience, allowing anyone with a digital wallet and internet
access to participate in the staking economy and earn rewards. The trustless nature of
blockchain and smart contracts automates the staking and reward distribution process,
offering users a secure, transparent, and error-free experience.
 Chapter 2

Literature Survey
2.1 BASIC TERMINOLOGIES

• Blockchain: A distributed ledger technology where data is stored in blocks that are
linked together chronologically. It forms the backbone of decentralized applications
(DApps) by providing a secure and transparent record of all transactions.
• Decentralized Application (DApp): A software application that runs on a
blockchain network, offering decentralized services without the need for
intermediaries. DApps utilize smart contracts to execute operations.
• Proof of Stake (PoS): A consensus mechanism where validators are chosen to
verify new blocks based on the number of tokens they have staked. It is more
energy-efficient than Proof of Work (PoW) and encourages network security
through token staking.
• Token Staking: The process of locking up tokens in a blockchain protocol to
participate in network operations, such as validating transactions or securing the
network, in return for rewards.
• Smart Contract: A self-executing contract with the terms of the agreement directly
written into code. In the context of staking, smart contracts automate the token
locking, reward distribution, and withdrawal processes.
• Web3: A set of decentralized protocols that enable users to interact with blockchain
networks and DApps. Web3.js is commonly used to connect the DApp with the
blockchain.
• MetaMask: A popular decentralized wallet that allows users to manage their
cryptocurrencies and connect to decentralized applications like the Token Staking
DApp.
2.2 EXISTING SYSTEM
The current landscape of token staking consists of various platforms that allow users
to lock their tokens and earn rewards while contributing to network security. Many
blockchain networks like Ethereum 2.0, Polkadot, and Tezos offer native staking
mechanisms where users can either run validator nodes or delegate tokens to validators.
These systems are highly secure and decentralized but often come with high entry
barriers and extended token lock-up periods, limiting liquidity. To address these
complexities, centralized exchanges like Binance, Coinbase, and Kraken provide
staking-as-a-service, simplifying the staking process for users. However, this
introduces centralization risks and reduces user control over private keys, which can
compromise security. In addition to native staking, decentralized finance (DeFi)
platforms such as Aave and Compound offer alternative staking models, where users
stake tokens in liquidity pools to earn interest or yield farming rewards. These
platforms provide more flexibility and often do not require long-term token lock-ups.
Some decentralized projects also allow users to stake governance tokens, such as
MakerDAO (MKR) or Uniswap (UNI), to participate in decision-making processes,
further integrating staking with project governance. Despite the advancements, existing
systems face challenges like complex user experiences, security concerns, and
centralization risks when using third-party services. Additionally, staking often
requires technical expertise, which can be a barrier for less experienced users. These
limitations highlight the need for more user-friendly, decentralized staking solutions
that improve accessibility, security, and transparency, providing a better experience for
both new and advanced users.
2.3 PROBLEM STATEMENT
Current token staking systems face significant challenges that hinder user participation
and adoption. Many platforms are overly complex, requiring technical expertise to
operate validator nodes, which alienates average users. Centralized staking services
expose users to security risks by requiring them to relinquish control of their private
keys. Additionally, existing platforms often impose long token lock-up periods,
limiting liquidity and discouraging participation. There are also concerns regarding
transparency and security, particularly related to smart contract vulnerabilities.
Therefore, there is a need for a decentralized, user-friendly staking platform that
simplifies the staking process, enhances liquidity, and maintains security and
transparency.
 Chapter 3

Requirement Gathering
3.1 SOFTWARE AND HARDWARE REQUIREMENTS
Below we list the necessary hardware and software requirements.
3.1.1 Software Requirements

Front End: JavaScript, Html & CSS, ReactJS

Operating System: Windows 8 and later

3.1.2 Hardware Requirements:

CPU: AMD Ryzen 3 3300x Quad-core, RAM: 4GB or Higher, HDD: 512 GB,

OS: Windows 11
 Chapter 4

Plan of Project
4.1 PROPOSED SYSTEM ARCHITECTURE

Fig 4.1.1 System Block Diagram

 Chapter 5

Result Analysis
5. RESULTS:

Fig 5.1.1 Home Page

Fig 5.1.2 Transaction Request
Fig 5.1.3 Stacking Token
Chapter 6

Conclusion
 CONCLUSION

In conclusion, the development and implementation of the Token Staking DApp

represent a significant step forward in enhancing the accessibility, security, and
efficiency of token staking activities within the blockchain ecosystem. By addressing
the challenges faced by users, investors, and stakeholders, the DApp offers a range of
benefits, including accessibility for users of all levels, security through blockchain
technology, flexibility in staking mechanisms, diversification opportunities,
transparency in operations, optimized rewards, interoperability across blockchain
networks, scalability to accommodate growing demand, compliance with regulatory
standards, and community engagement. Through its user-friendly interface, robust
security measures, transparent governance processes, and innovative features such as
liquid staking and optimized reward distribution, the Token Staking DApp empowers
users to participate confidently in staking activities, contribute to network security and
governance, and earn rewards while maintaining control over their assets. By fostering
trust, promoting inclusivity, and driving innovation, the DApp contributes to the growth
and maturation of the blockchain ecosystem, paving the way for broader adoption and
sustainable development in the years to come.
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