Staking / Mining Guide
When working with POS coins (Proof-of-stake, yes, we know the acronym is not ideal), your wallet does the work when it is online. There are plenty of guides online that do a very good job explaining POS and how it all works. In this article, we want to make sure you know how to enable staking in your wallet. Let’s look at a list of requirements first to begin staking.
How Do I Stake / Mine XEP?
In short, you can’t mine XEP. Mining is usually associated with POW. Mining that most people know is that you need a rig / CPUs / GPUs to work out equations and do high powered work to solve equations. Once completed, there is usually a reward if you do so before other miners. With XEP, we don’t use POW. POW was only enabled for the premine. With XEP, since we are only POS, you only need a XEP wallet (certain wallets apply), XEP (Electra Protocol coins) in the wallet, and an active internet connection.
Here is the list of what is needed per the XEP Wallet to stake.
NOTE: As of this time of the page, only the XEP Core Wallet supports staking. Other services or exchanges may support it as well.
Here is the checklist of required items per the XEP Wallet:
- Active internet connection
- Use a current supported XEP Core Wallet (ask User Support if you are not sure)
- Valid Time – Your wallet needs to have the current date and time
- Need to have peer connections
- Wallet unlocked
- Mintable coins
- Enough coins
- Fully synced XEP Wallet
Let’s review these lists and try to understand what each means in simple terms.
Active Internet Connection
This is pretty straight forward. Have an active internet connection. Don’t let the computer you use go to sleep or have the network card go to low power mode. For best results, use a VPS (virtual-private-server). Vultr and Digital Ocean are two very common companies for hosting. You can get a Windows server with GUI (Graphic User Interface) which do cost more or use a command line only version with Linux. Mac works well too. You can also use your personal computer or even a Raspberry Pi. The wallet program needs to be running on this computer. Also make sure you have no firewall blocking the program. If it does, you need to allow an exception for the wallet. Firewall programs may see a false-positive (thinks it’s a virus but not). This is because the wallet works in the same manner as a file sharing program would. It shares connections and data.
Current Supported Wallet
You need to have a wallet that is compatible with the current most used blockchain. Older wallets will stake and receive rewards but they are using and old blockchain and thus the rewards will only exist on that blockchain. Staking on the Electra Protocol network is rewarded with stakes. A stake can be thought of as a reward for keeping your wallet online with the network if you meet the full requirements of the check list above. Mobile wallets do NOT stake since they use a light version of the Electra Protocol wallet and do not have the full blockchain but the headers. To make sure you have the most current supported wallet for the current blockchain, contact Electra Protocol User Support.
Simply put, keep your server or computer on the correct time and date with the location you are in. Any change will be detected by the wallet and may corrupt your current blockchain which you will have to download a new copy of the blockchain.
These are also called nodes. Nodes and peers are devices which have an active running XEP Core Wallet which are synced or currently being synced to the network. Your wallet should find these automatically and should sync your wallet. If not, please contact Electra Protocol User Support.
This means your wallet needs to be “unlocked” so other coins can be seen on the network. This does not open you to attacks or hackers. It’s simply to allow the network to know your keeping your coins available on the network and “inputs”, more or less deposits in your wallet, active to be verified. Best example is think of interest on a savings account. Your keep your funds in an account and not moving them around and keeping them in one place on one transaction. In doing so, you will earn rewards.
At this time of writing, it takes 12 real world hours to allow your coins to start to stake on the network. This being said, your computer can be off during these 12 hours. Once you reach these 12 hours, your coins will be matured or mintable. To start the staking process, your coins once minted fully, will start to stake once you turn on your wallet and unlock it again to stake. When they are staking, they take time to earn rewards on the network. Just because you are staking does not mean you will earn rewards at the same frequency. Once you receive a stake in your wallet, if you are staking all your coins in a single input, you may see your wallet show “Not Staking”. This is due to your input that was stake received the reward needs to re-mature again. For example, if you stake 1000 coins and 200 coins (two different deposits / inputs) the 1000 coin deposit will receive a stake first. Once that does happen the 1000 coin input will need to remature for 12 hours. Then the staking process will begin again.
Enough / Minimal Coins
There needs to be a minimal amount of coins in your wallet to stake. It is a very low amount. But to simply put, the more coins you have staking, the sooner your reward will be. The larger the input, or a deposit, the sooner the stake. From my experience, if you have 1 million coins staking at a time in your wallet, you make get a reward in about 3 weeks if your wallet is staking 24/7. This will change due to how many nodes are on the network and how many of those nodes are staking and the quantity of coins they are staking.