PART Coin - Staking

The Particl platform uses a custom Proof-of-Stake protocol, Particl Proof-of-Stake (PPoS), as its consensus mechanism. Proof-of-Stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. In PoS-based cryptocurrencies, the creator of the next block is chosen via various combinations of random selection of wealth and age. In contrast, the algorithm of Proof-of-Work (PoW) based cryptocurrencies such as bitcoin rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks (i.e. mining).

PPoS is built and improved upon the popular PoS3 protocol on top of which were added several security and utility features. Its scheduled inflation rate is 5% of its total supply during the first year, then decreasing by 1% every year until it plateaus at 2% indefinitely.

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.

Cold Staking Pools

Cold staking pools are to Proof-of-Stake coins what mining pools are to Proof-of-Work coins (i.e. Bitcoin).

In the context of cryptocurrency mining, a mining pool is the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to the probability of finding a block. — Wikipedia

In fact, cold staking pools allow you to “team up” with other stakers and combine your staking powers in order to earn more frequent staking rewards. All rewards earned while staking from a pool are sent over to the pool operator, which then executes payouts proportional to how much you’ve contributed to the total amount of rewards the pool earned. This is particularly useful if you own fewer coins and still want to stake your coins as it means you’ll earn more frequent, but smaller, staking rewards. The operator of the pool do not have access to your staking coins and can only manage the rewards.

Hardware Cold Staking

“Hardware Cold Staking” refers to the act of cold staking funds stored on a hardware wallet such as a Ledger Nano device. This provides the same benefit as cold staking from any other device but adds an extra layer of security for when making transactions.

Usually, even if you are cold staking funds that are stored offline, you still run a risk when transacting them or even by simply unlocking your wallet. The reasons for this are multiple. A common case of coins being stolen at that point would be because the device on which you unlocked your wallet or made a transaction had been infected prior.

Using hardware devices fixes that vulnerability. In fact, for an attacker to successfully steal your coins, they would need to have physical access to your hardware device and have the correct information to unlock it. This solution, however, generally doesn't let PoS coins stake blocks as they are not connected to the internet in any sort of way.

Particl Proof-of-Stake enables coins that are stored offline on hardware devices to stake blocks and earn staking rewards.

Quantum-Resistance & Privacy

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.

Staking Incentives

PPoS can serve as a great tool to increase Particl ownership. It rewards stakers a minimum rate of 5% per year for securing the network, then drops 1% every year until it plateaus at 2%. This staking reward rate is true if 100% of the total supply is put up for staking, but gets higher as less coins are being staked. For example, if 50% of the total network is being put up for staking, the staking reward rate for the first year would be of 10%.

The Particl platform also redirects any fee generated from it directly to stakers, including but not limited to currency transactions, listing fees, extended messaging, privacy balance transfers and others, meaning stakers gets incentives to maintain the network as the blockchain gets more traffic.

Decentralized Voting

Integrated into PPoS is a blockchain voting system that can be used by any Particl user to poll others or vote. This tool allows the platform’s community to provably reach consensus and better coordinate itself. Polls run for a desired number of blocks and each staked block is a voting ticket, meaning the more blocks a staker finds, the more of his votes are registered. A staker can vote for any number of polls and they will all receive one vote for the selected option once the staker finds a block.

Embedding voting into PPoS means people who do not have any stake in the platform can’t vote, leaving the decisional power entirely up to the community of users.

Particl Foundation Self-Funding

The Particl Foundation, the Swiss legal foundation which supports the Particl project, gets 10% of all the staking rewards on the Particl network. This serves as a self-funding mechanism for the Particl Foundation to financially support, promote and market the Particl platform. This mechanism ensures the self-sustainability of the project and becomes more profitable as the speculative price of the Particl coin increases.

Block Time 120 seconds
Block Reward ~1.27 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. 3%, decreasing 1% every year until it stabilizes at 2%

Last updated: 18-07-2019

To stake your coins and receive passive income (or “interest”), make sure that:

  • Your wallet is unlocked. You can check lock state by moving your mouse over the Lock icon in the bottom corner of your client. If your client is locked, click the icon and enter your password (you chose this password when you encrypted your wallet).
  • You have mature coins. However weird that may sound, your coins need to mature first. When you withdraw coins from exchanges or receives them from friends, buyers, or from the escrow deal after a successful marketplace transaction, you'll need to wait at least 8 hours (225 confirmations) for them to mature. Only then they will stake. Keep in mind that first staking may be a bit longer than that – wait at least one day till you'll be getting regular staking rewards.
  • You have some public PART coins. As described in the comparison of currency types, Anonymous and Blind PART coins don't stake. If you want stake rewards, be sure to have some public PART coins.
  • Have a decent amount of coins. If you have less than ~1000 PART, you won't see staking rewards too often. Higher amounts of PART stake statistically more often.
  • Your wallet is open ideally 24/7. Staking doesn't need a lot of electricity (as mining in PoW), but it needs some time. If your client is open just few hours a day, you might not see many staking rewards. For ideal results, keep you client open and staking 24/7. Dedicated staking devices (like Raspberry Pi or Pine64) are great way to achieve that without the need of having your main computer running all night.
  • You're in sync with the network. This may be obvious, but you won't get any rewards during the time you sync your client with the network.

Get more information about staking at the staking FAQ.

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Learn more about the different currency and transaction types. Learn more about the PART Currency.

Get more information about staking at the staking FAQ.