Proof-of-Stake block generation
By holding EMC in your wallet, you can assist the Emercoin network to verify/broadcast transactions by generating new blocks with Emercoin's Proof-of-Stake(PoS) system.
When PoS blocks are generated, the wallet that generated the block is rewarded with additional EMC. Earnings from PoS are at the rate of approx. 6% per year. The process of generating blocks with Proof-of-Stake is loosely referred to asminting.
EMC coin age maturity is 30 days. This means, the UTXO(Unspent Transaction Output) that added the EMC to your balance must sit unspent for 30 days before it becomes eligible to generate a PoS block.
This guide covers how to mint Proof-of-Stake(PoS) blocks with an encrypted wallet on your own computer using the Emercoin GUI. Note that it is also possible to mint PoS blocks on a headless server with the Emercoin daemon (see walletpassphrase command below).
Before we begin, let's understand a few things about PoS with Emercoin:
- EMC blocks are mined approx. every 10 minutes.
- The chance of mining a block with PoS is related to the amount of EMC you hold.
- Coins must sit unspent in the EMC address for 30 days to become eligible for staking.
- Maximum staking weight (chances of staking) is reached after 90 days.
- To have the chance to mine a block with PoS, the wallet must be unlocked for minting, as described below.
- Staking correctly will generate approx. 6% interest p.a. The PoS reward for minting a block is based on coin age.
Follow these steps to mine PoS blocks using the GUI:
Encrypt your wallet:
To encrypt your wallet, choose 'Encrypt Wallet' from the Settings menu and choose a strong password that you won't forget.
After your wallet is encrypted, a locked padlock icon appears at the bottom of the window.
Unlock your wallet in Mint-only mode:
Click the padlock icon at the bottom of the window, check the 'Mint only mode' checkbox and enter your password.
When the wallet is unlocked, the padlock icon at the bottom of the window will appear unlocked.
While the wallet is in 'Mint only mode', you can safely leave it open without anyone being able to send funds out.
Leave your wallet unlocked and running in Mint-only mode:
Coins only have a chance to stake while your wallet is open, and they sit untouched in the EMC address for 30 days.
If you mint a PoS block, you will see your 'Stake' balance change for 32 blocks until the PoS transaction confirms.
When coins have staked successfully, you will see new transaction and new coins added to your balance.
How often to run the client for staking?
You could unlock your wallet for minting for a few days each month, however in practice it's unlikely all your transaction UTXO's are ready to stake at the same time. Therefore in the long term it is more pratical to leave the wallet running 24/7 to increase your chances of minting PoS blocks and to support the Emercoin network.
Checking your PoS statistics
There is PoS calculator provided at https://explorer.emercoin.com/poscal.
Additional statistics particular to your EMC address are also available:
- Visit the Emercoin blockchain explorer at https://explorer.emercoin.com and search for your EMC address(es) that are currently staking.
- Run the staking calculator tool for your EMC address on https://explorer.emercoin.com(press the purple "leaf" icon and you will see the results on your minting %, coin age, and several other variables).
Preventing your wallet from staking
While coins are staking they will not be accessible to spend. If you need to prevent an amount of EMC from staking, simply set reservebalance in your wallet's emercoin.conf file. e.g:
To prevent your wallet from staking at all, simply set reservebalance to be greater than your total EMC balance.
Minting using the headless daemon
If using the command line daemon instead of the GUI then you can unlock your wallet for minting using the walletpassphrase command:
walletpassphrase "passphrase" timeout [mintonly]
e.g. to unlock for minting for 604800 seconds (1 week):
$ emc walletpassphrase yourlongrandompassphrase 604800 true
- Check your expected PoS rewards at https://explorer.emercoin.com/poscal
- Check your minting statistics for your EMC address (see above).
- Ensure the EMC UTXO has been left unspent in your wallet for at least 30 days.
- Ensure you have not set reservebalance in your wallet's emercoin.conf file.
- See https://www.reddit.com/r/EmerCoin/comments/6xsmfw/pos_minting_question/
- See the following article on medium: Money makes money: How to earn Emercoin by taking advantage of the PoS algorithm.