Crypto Wallet Staking Guide | The Electra Project

Staking explained – a few Answers to questions about staking Electra

What is POS (Proof of Stake) as compared to POW (Proof of Work)

Proof of Work (POW) is the validation of work to authenticate the blockchain. It can be very power-intensive (Mining).

Proof of Stake (POS) is an alternate way of validating work to authenticate the blockchain although isn’t power-intensive (Staking).

 

My wallet is fully synced, but it still says – not staking because you don’t have mature coins?

To mature coins, you have to leave your wallet unlocked for 24 hours.

 

How long does it take until I get a reward?

This depends on how many coins you stake, and on how many other coins are staked by others. You get reward every time you find a block.

How much is the reward?

50% annually. There is no fixed reward per block, reward is proportional.

 

How is it calculated?

Everytime a new block is found, your wallet selects an input (transactions) and calculates the full reward for this block. (number of coins x time [CoinDays] / 730) Then, the input is reset (marked as spent) and together with the reward saved as a new input, with now zero CoinDays

 

What does “Your Weight” mean (near the staking arrow)?

This is the total of CoinDays staking (All mature coins in your wallet – from one or more addresses – multiplied with their respective age) (This number + the number of coins in your wallet / 730 gives the pending reward).

 

What does “Network Weight” mean?

This is the accumulated weight of all the wallets on the network that are actually online (staking coins x age).

What does “expected time” mean, how is it calculated, and is it reliable?

It’s a raw estimation on how much time might be needed until your wallet might stake next. The formula is (network weight / your weight = number of blocks until your weight would be sufficient / by number of expected blocks per day) It’s not reliable – if you just started staking, the value will be too high. But even if you’re staking for quite some time, change in the network weight (wallets that have been offline coming online again – or vice versa) will influence it. If you have only relatively few coins in your wallet, it might effectively take significantly longer than shown, as much larger wallets will push ahead with their many coins – and if you have few very large blocks, it might actually take significantly shorter.

Will I get the full reward even if I only get a block after quite some time.

Yes, reward is always calculated for the full CoinDays of the input that gets reward. You might, however, miss out on compound interest. (Staking reward for coins staked earlier).

Do I need to have my computer running and online 24/7?

 

No. While a high number of online full nodes (staking wallets) is essential for the smooth operation of the network, occasional downtimes do not affect your expected reward. You can only get rewarded whenever you find a block – but for the calculation of the reward, you can keep your wallet offline for 364 days and online the 365th day and still receive 50%. Just be sure to keep your wallet on for the full day.

Should I split my coins in many small inputs for better staking results, or rather combine them in to as large blocks as possible?

 

Mostly “the larger the better” is a good rule of thumb, many small inputs actually increase the time for everyone to get their due reward, only ONE input is reset / rewarded per block and the number of blocks per day is given (288). But if you have few very large inputs, you will likely get reward early. Each time you get reward for an input of less than 11 days of age, the wallet will create TWO outputs of equal size, thus creating smaller and smaller inputs, and slowing the network down.

How can I stake faster?

If your wallet contains too many small inputs, you can combine them manually (send them to your own address). Very small inputs that are in the same wallets with much larger ones will likely never get reward, because they are overpowered by larger inputs To avoid losing many CoinDays (and thus potential reward) you should combine only inputs that have recently staked … – and thus not yet accumulated a lot of potential reward. And yes – taking a wallet with a small number of very large inputs offline for a few days will actually accelerate staking for everyone – it reduces network weight and makes it easier for others to stake, and once you bring your wallet online again, you will have a large weight and stake sooner – especially if you leave it offline for enough time to avoid auto splitting.

Can I have the same wallet on multiple devices?

Yes although it won’t make staking any faster.