PART coin - staking

What is staking?

From Wikipedia

Proof-of-stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. Unlike proof-of-work (PoW) based cryptocurrencies (such as bitcoin), where the algorithm rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks (i.e. mining), in PoS-based cryptocurrencies the creator of the next block is chosen in a deterministic (pseudo-random) way, and the chance that an account is chosen depends on its wealth (i.e. the stake).

In PoS cryptocurrencies the blocks are usually said to be forged (in the blacksmith sense of this word), or minted, rather than mined. Also, usually all the coins are created in the beginning and the total number of coins never changes afterwards (although there are some other versions of PoS where new coins can be created). Therefore, in the basic version of PoS there are no block rewards (e.g. as in bitcoin); so, the forgers take only the transaction fees.

Learn more about the Particl staking mechanics and learn how to stake Particl coins.

Is there a staking calculator?

Yes, click here.

What are the staking parameters of PPoS?

Block Time 120 seconds
Block Reward ~1.52 PARTs
Block Size 2 mb
Time for coins to reach maturity (be able to stake) 225 confirmations (~8 hours)
Segwit Enabled by default for all transactions
Yearly Staking Interest Rate Min. 5%, decreasing 1% every year until it plateaus at 2%

Last updated: 21-02-2018

How much can I earn staking?

How much you will earn in a year cannot be accurately predicted as it depends how two variables: the amount of coins you are staking and the percentage of the entire network supply being staked by other users.

% of total supply being staked % of yearly staking interest
100% ~5%
75% ~7.5%
50% ~10%
25% ~20%

You can also calculate your theoretical staking revenue using this staking calculator.

How often will I receive a staking reward?

Rewards are paid in increments of ~1.52 PARTs (as of 22-02-2018). YYou can roughly estimate how many staking reward a day you would earn by doing this calculation:

((X*Y)/Z/365)/B

365 = number of days in a year

X = number of coins you want to stake

Y= guaranteed staking interest rate (currently 5%)

Z = block reward size (currently ~1.51 PART)

B = percentage of the network staking (usually around 50-60%)

You can also use this staking calculator.

Is there a minimum amount of coins required to start staking?

No, you can stake with any amount of coins.

Can I stake from a pool?

There currently is no staking pools available, but the Particl Proof-of-Stake protocol allows for it. If you want to start your own staking pool, the Particl team is available for developer support and help. Reach out to us if you are interested!

Are there masternodes?

No, we do not have any masternode mechanism in place, nor do we require to. Being heavily focused on true decentralization, the Particl platform natively supports all features that masternodes usually grant blockchains such as messaging, storage, scalability, voting, private transactions, and etc.

What is cold staking?

Cold staking is enabled by smart-contract functionality and lets users securely delegate staking powers to “staking nodes” which contain no coin. The purpose of these “staking nodes” is to provide a dedicated resource connected to the Particl blockchain and stake on behalf of another wallet without being able to spend its coins. Cold staking nodes are intended to be used in combination with cold, hardware and paper wallets as well as multisig addresses, making it possible to stake “offline” coins with no risk of being hacked or exposing your public key to the network. Staking nodes can be set up on any device, secure or not, such as public/cloud servers, virtual machines or RPIs.

How long will it take for my cold staking activation process reach 100% complete?

The activation process time will change drastically depending on the amount of coins and outputs you have. As a general rule of thumb, the more coins and outputs you have, the longer the activation process takes. It generally will last several days, sometimes even lasting for weeks.

Is there any way to speed up the cold staking activation process?

Yes, you can use the ZAP function available on Particl Desktop, but note that doing this will reduce your staking efficiency for more or less the same amount of time it would have taken to fully activate cold staking the regular, non-zapped way. It also can jeopardize some of your privacy by essentially broadcasting transactions that can then be used to estimate the amount of coins you are staking on the node on which ZAP was activated.

Why is Particl Proof-of-Stake quantum-resistant?

Current Proof-of-Stake implementations have a vulnerability not present in Proof-of-Work whereby they reveal the public key of staking addresses when they find and sign blocks. The most dangerous attack by quantum computers is against public key cryptography. On traditional computers, it takes on the order of 2128 basic operations to get Bitcoin private keys associated with Bitcoin public keys. This number is so massively large that any attack using traditional computers is completely impractical. However, it is known for sure that it would take a sufficiently large quantum computer on the order of only 1283 basic quantum operations to be able to break a Bitcoin key using Shor’s algorithm. This might take some time, especially since the first quantum computers are likely to be extremely slow, but it is still very practical. It could be estimated that it is maybe 2 to 5 years until quantum computers become an issue, but any project that plans on staying relevant on a long period of time should tackle these vulnerabilities way before they become problematic.

It is worth mentioning that public keys are NOT public addresses. To reverse a private key from a public address, it would require more energy than what is available in the universe, therefore a quantum hacker cannot just go pick public addresses with large amounts and reverse those.

When a Particl block is staked from a cold staking node, the private key of the address on the staking node (which contains no coin) is broadcasted to the network instead of the private key of the address which contains the staking funds. Because cold staking nodes are able to sign staked blocks on behalf of any wallet, hot or cold, cold stakers can effectively remain anonymous and shielded from theoretical quantum computer attacks.

How do I enable staking?

How can I make sure my wallet is staking?

First, make sure your wallet is online and “unlocked for staking”. On Particl Wallet and Particl-qt, then lockpad icon should be yellow/golden. On Particl-qt, you can go to Help/Debug window/Console and type (without quotation marks) “getstakinginfo”. If your wallet is staking, the output should say “enabled: 1” and “staking: 1” .

Learn more about Particl staking and see the online Particl Staking Calculator at the Particl Staking page.