Energi Proof-of-Stake Guide

energi (48)in #cryptocurrency • 5 years ago (edited)

As of February 26th, 2019, at approximately 17:00 UTC — the exact block height the transition occurred was at block 437600. Energi (NRG) is now fully transitioned to a Proof-of-Stake (PoS) consensus model. We are so excited to now have a method that will allow NRG holders to easily stake their coins onto the main net and earn Energi!

This article will be a step-by-step guide on how you can stake your Energi with the Energi Core Wallet (These steps are for both PC and Mac versions of the wallet). Before staking your coins, please be sure to download the latest wallet software to avoid any problems syncing with the network. You can find the latest release on our downloads page at https://energi.world/downloads/

How to Stake Energi

Step 1

Open your Energi Core Wallet and make sure it is fully synced to the network and encrypted (highly recommended).

Step 2

Confirm your Energi address has a balance of 1 NRG or more (a minimum of 1NRG within your Energi address is required to use PoS).

Note: It’s technically possible to earn NRG with staking just 1 NRG but currently, it will take 2.6 years to get 1 NRG.

Stakes are regular UTXOs of at least 1 NRG in amount except special case of 10,000 NRG and age of at least 1 hour.

UTXO is Unspent Transaction Output which can be most easily viewed in Send tab through Coin Control functionality (disabled in settings by default) or via “liststakeinputs” command since v2.1.1.

The amount of particular Stake is used as a multiplier for PoW-like hash target.

Step 3

Once your wallet fully synced, navigate to ‘Settings.’

Step 4

From ‘Settings,’ select ‘Start Staking.’

Step 5

Once you have selected, ‘Start Staking,’ you will be required to enter in your Passphrase. If you have not already created a Passphrase, it is highly recommended that you use one to keep your Energi coins secured and make them only accessible by you.

Step 6

Once that is completed, the ‘arrow’ icon at bottom right-hand corner should soon turn green and should change messages from, ‘Staking is disabled’ to ‘Staking is enabled’ when you hover your cursor over.

It is required to have your wallet remain open and connected to the network in order to earn rewards.

This message will be displayed if staking has not been enabled

This message will be displayed if staking has been enabled

Congratulations!
You are now staking your Energi and will be eligible to earn Energi!

Energi’s PoS will distribute 10% of the newly emitted Energi per month to stakehodlers. To determine how much Energi participants can earn when staking, let’s use the following numbers as examples. If a user is staking 5,000 NRG and there is a collected total of 2,000,000 NRG being staked, multiply by 10% of the newly emitted Energi (100,000 NRG) to determine the monthly return:

(5,000 NRG / 2,000,000 NRG) * 100,000 NRG = Monthly Return

That is an astounding 60% yearly return. This is arguably the largest rate of return any cryptocurrency has to offer their stakehodlers.

Frequently Asked Questions

Q: What happens if my Stake wins?

A: If a Stake wins and creates a block then the original UTXO is burned and a zero-fee transaction creates a new UTXO. Therefore, age gets reset.

Q: Why are my stakes in a conflict state?

A: Orphaned blocks abandon the Stake transaction and are marked as “conflicted”. Often, that may be a sign of local time not being properly synchronized.

Q: How do stakes win?

A: A PoW-like hash target is calculated based on the current block difficulty. For each stake input, a hash is generated with a block time as the only variable parameter. This hash is compared against the required hash target multiplied by the amount of the stake input. Energi Consensus strictly limits block time interval.

Q: How to disable staking?

A: Put “staking=0” into energi.conf

Q: My staking indicator shows “staking is disabled”!

A: If your wallet is unlocked then most likely you have no UTXOs eligible for staking. Try “liststakeinputs” command (since v2.1.1).

Q: Does Masternode collateral amount stake?

A: No. Stakes create a new transaction what would break a Masternode setup. Therefore, all amounts of 10,000 NRG are ignored by the staking wallet. There is no consensus exception.

Q: Is it better to have one large UTXO or many small UTXOs?

A: A naive analysis shows that one large UTXO is better, but it does not take into account the age maturity requirement and other paradoxical factors.