Trustlines 101
Crypto trustlines act like a bridge between coin issuers and traders, and establish trusted relationships between involved parties. At LOX Network, we’re using trustlines to boost the yield of all SmartLOX, SmartNFT, MetaLOX, and $LOX token owners. Check out our guide to crypto trustlines and start earning today.
LOX Network breaks down the ins and outs of trustlines, as well as how you can start earning with MetaLOX’s staking program today.
For developers and traders, trustlines represent a beneficial way of managing digital assets. Token limits can be controlled, and coin spam minimized. At LOX Network, you can increase your SmartLOX, SmartNFT, MetaLOX, and $SLOX token yield through our staking program. Read on to find out how.
What are Crypto Trustlines?
Crypto trustlines are structures in the XRP Ledger that allow developers to create new assets and limit the circulation of them. Each trustline is based on a currency code and each account has a limit for the number of trustlines that it can hold.
For users, trustlines are used to successfully trade, receive, and hold digital assets on a particular network. Trustlines are established between traders and token issuers and prevent you from receiving any unwanted assets—meaning you’ll never get anything other than what was originally agreed.
Simply put, when you agree to purchase or receive a token from an issuer, you create a trustline.
Creating a trustline is a simple process and can be done from your own wallet. Once created, you can check the balance of a trustline and send it to another account. Before we explain how to get set up with a MetaLOX’s staking program, here’s why you should consider using a trustline today.
Benefits Of Using a Crypto Trustline
Using a crypto trustline can be extremely beneficial in the right circumstances. As an XRP feature, trustlines allow for a shared balance between two or more accounts. They can be used to make payments to addresses, trade tokens, and even secure IOUs. Trustlines are also useful for preventing token spam.
Additionally, a trustline also has advantages over a normal line of credit, particularly being more robust to theft and having less counterparty risk. However, they also require some degree of management. When a trustline is active, the account owner's reserve increases by five XRP. In fact, a trust line provides the opportunity to make the most of the XRP Ledger's multi-signature functionality.
Let’s look at how a trustline directly connects a token issuer and end user to an asset.
Connecting to an Asset and Anchor Accounts
Crypto trustlines connect to an asset over the network, acting as a bridge between issuer and end user, with the token or asset in the middle.
An issuer of a regulated asset can authorize transactions on a case-by-case basis. The transaction is then signed and submitted to the ledger. If the authorization is revoked, the asset is frozen. Depending on the issuer, withdrawal fees may apply.
Trustline transactions usually include two or more specific types of anchor accounts. Firstly, the anchor's issuing account is the account that actually created the asset—for example, Bitcoin are the creators of BTC. Secondly, the distribution account is the account that receives payments from the issuing account and also specifies the issuer's public key.
Although this may seem complicated, it’s incredibly easy to set up and get started. To help you along the way, we’ve created a simple list of steps to follow to set up a trustline with Xuum and start earning MetaLOX rewards.
Join the MetaLOX Staking Program and Set Up a Trustline with Xuum
The MetaLOX staking program is already live and you can join right away! Before you do, make sure you have the right wallet. We recommend Xumm, however, you can also use any XRPL compatible, non-custodial wallet.
To enter the MetaLOX staking program, you also need to hold a minimum of one $LOX, SmartLOX, SmartNFT, or MetaLOX token. Additionally, you need to have a trustline enabled to join the staking program, and enjoy any of our other rewards.
Here’s how to set up a trustline with Xuum:
Go to xrpl.services.
Select 'Sign in with Xuum'.
XRPL.Services will display a QR Code.
Scan the QR code using the Xumm app.
The Xuum app will show a sign-in transaction.
Sign the transaction if necessary.
Select 'Accept' in the Xumm app.
Verify the correct XRP Ledger network.
Select 'Trust Set (Trustlines)'.
With your trustline enabled, you’re now ready to start earning rewards through the MetaLOX staking program. Of course, the more you own, the higher you yield. Want to know more about MetaLOX?
MetaLOX: Play, Earn and Socialize
At LOX Network, we’ve developed a custom-built hybrid blockchain that’s powering the world’s first global decentralized mobile device blacklist.
Now, our hybrid blockchain technology is transforming what it means to be a metaverse through MetaLOX—our very own metaverse that integrates NFTs, Game-Fi, and De-Fi, pushing the limits of AR, MR, VR, and XR to the maximum
We’re bringing users an immersive virtual experience like no other. Join our community for the latest news and updates on all things MetaLOX.
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