Proof-of-Stake V3e

The Electra Protocol blockchain uses a proof-of-stake consensus mechanism. The current version used is Proof-of-Stake Version 3 Enhanced (PoSv3e).

Proof-of-Stake Version 3 Enhanced provides incremental security improvements over PoSv2 for “short-range” block-time and iterative attacks. Like PoSv2, PoSv3e does not rely on “coin age” or “weight” for determining which users earn a block and staking reward. PoSv3e encourages users to stay connected to the network because if they don’t they cannot earn a block or reward that’s based partially on transaction depth and partially being randomly selected. For Electra Protocol, once a single transaction containing coins has matured and remained unspent for 12 hours, that transaction is eligible to be selected to earn a block and therefore a staking reward.

Once selected for a block and reward, a user’s reward is determined by a separate calculation specific to Electra Protocol. Currently the reward is set at 3% annually. Calculation method:

Staking reward = ((3% * # coins in the transaction selected) * (days unspent) / 365).

Explanations

  • Transactions that occur when coins are moved and unspent thereafter are what developers call UTXO’s (Unspent Transaction Outputs). Because transaction inputs can be faked, it’s more secure to look at transactions that have already been verified on the blockchain and are available for future transactions (spending).
  • Sending coins to the same address or wallet in stages or incrementally will create multiple UTXOs.
  • To earn a staking reward, wallets must remain unlocked.
  • “days unspent” are the number of days the transaction was staked or unspent and cannot exceed 30 days to encourage users to remain connected to the network.