Staking Overview
What is Staking
Staking- is the process of actively participating in transaction validation on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Sounds easy right? In order to simplify, what you you are essentially doing is taking a portion of your digital assets and promising not to spend them, and joining with others to form a pool. In return, you will receive rewards for your effort. There are many different staking rules for different staking projects. The most important thing to do is your own research, and understand what you are doing.
MOstaking.com is a website dedicated to helping you understand staking for the the specific projects we support. You will always keep your assets in your wallet under your control. Never send your assets to anyone to stake on your behalf.
Let's discuss several different staking mechanisms of our shared staking pools.
Loki- Loki allows anyone to set up a service node. The operator is in charge of maintaining the service node and insuring that the service node is running correctly. This service node is run on a Virtual Private Server (VPS) located anywhere in the world. On the VPS, we run a Linux based application that performs services for the project, such as keeping a copy of the blockchain record, routing data, verifying the transactions and several other tasks. Each service node requires a minimum stake amount. Initially, it was 45,000 Loki per service node. It is designed to lower the threshold gradually to 15,000 Loki. Currently you need a minimum of around 4000 Loki to be an operator. You then need to get additional people to stake the difference or you can provide the full amount as the operator. The current amount needed is a little under 17,000 Loki to register a node on the network. Once registered, that service node will be perpetually earning rewards until either the operator or a participant opts out though a deregister command performed in the wallet. That allows you to leave in 15 days. When you are staking, the funds will always be in your wallet, but any amount you are staking is locked, meaning you can't spend or transfer until the unlock period is reached.
Each node will the receive a reward of 16.5 Loki, split up among the participants of that specific node based on how much of the stake they have for that node. For example, if you staked 50% of the total requirement, you would get 50% of the 16.5 Loki, less any fee the operator establishes when the node is formed. One node is rewarded the block reward for each block. Once your service node is rewarded, you move to the bottom of the list. As each block is created, you move up the list, and the Service Node that receives the reward goes to the bottom. You can expect a reward about every 1100 blocks which takes about 37 hours. For more information on MOStaking.com Loki pools, please visit our Loki Pools Page.
Cardano- Cardano will be going to Proof of Stake rewards system in late July of 2020. The Cardano staking mechanism calls for pool operators to to run nodes on a VPS. On the VPS, we will be executing a Linux based program that will perform the tasks required to keep the network running efficiently by verifying transactions, maintaining a copy of the blockchain and contribute to providing a decentralized infrastructure to the Cardano community. As a pool operator, we have the additional task of setting up registration certificates, maintaining the keys and insure that the pool operates as efficiently as possible. Each pool will have to go through the registration process approximately every 120 days.
As a pool operator, we provide a pledge of Cardano's currency ADA to start the pool. We then will be registered on the network and within the Cardano wallet. You can then select to stake your ADA in your wallet to our pool, or any other pool that is registered.
Rewards will be earned when a pool creates a block. The ability to create blocks is determined by a number of factors including total amount of ADA staked by everyone in the pool, the performance of the Node and several other factors. Rewards will be split among those persons who have staked to the pool at the conclusion of the staking period, less any fixed fee and commission set by the pool operator.
We will be setting fee's and a commission rate based on the market. We are committed to finding a competitive balance that allow for maximum rewards for those who stake to our pool. We traditionally try to set a low commission rate and work on making the pool as efficient as possible. This leads to having long term relationships with our partners in the pool stake. Additionally, since this is new for the entire community we are going to try to communicate our experiences and let you know how we are performing and what adjustments we will be making to improve our performance. You can send us a note on the dialog box located below, or via our social media links. We encourage your feedback. For more information, you can visit our Cardano pool page
