Learn about Syscoin Staking

Can I stake SYS?

Syscoin operates on a hybrid Proof of Work and full node model and does not support traditional staking mechanisms like those seen in Proof of Stake blockchains. Users can earn block rewards by running a Sentry Node.

To own a Syscoin Sentry Node and earn income, you need to hold 100,000 SYS as collateral. To facilitate setup and infrastructure operations, you can use third-party hosting services.


How are the rewards generated?

The individual Syscoin rewards come from block rewards and depend on the number of nodes on the network and time in service. To earn rewards from a Syscoin Sentry Node, you must meet stake requirements of 100,000 SYS as collateral. Payments start after a qualification period, with nodes typically receiving income every three days if around 2,500 nodes are active. The base block reward is 52.91 SYS, with increased rewards for nodes held for one and 2.5 years, at 71.43 and 105.83 SYS respectively. Annual payouts decrease by 5% until a minimum threshold is reached, ensuring long-term incentives for node operators.


Is there a risk to stake SysCoin?

Running Syscoin Sentry Nodes involves several risks, including:

Collateral Costs: To operate a Sentry Node, you must lock 100,000 SYS as collateral. Any malfunction, misconfiguration, or prolonged downtime of your node could result in loss of rewards.

Technical Risks: Sentry Nodes require technical expertise to set up, manage, and maintain. Mistakes in configuration, software updates, or security measures could lead to node downtime, performance issues, or security vulnerabilities.

Economic Risks: The value of SYS tokens can be volatile. Fluctuations in token price can affect the profitability of running a Sentry Node. Additionally, annual reductions in payouts and competition from other nodes can impact your expected returns.

Operational Costs: Running a Sentry Node incurs ongoing operational costs such as electricity, internet, and hardware maintenance. These costs can add up and need to be weighed against the rewards earned from node operation.

Market Competition: With more Sentry Nodes joining the network, the frequency of reward payments may decrease, affecting the overall income. Higher competition can lead to reduced profitability for individual node operators.


What is Syscoin?

Syscoin is a Bitcoin-powered ecosystem that secures rollups (L2s and L3s) with unparalleled data availability. It enhances Bitcoin's capabilities by offering it the advanced functionality of a modular execution layer.


How was Syscoin launched?

Development work on Syscoin 1.0 started in March 2014, but it was only publicly announced on 16 April 2014 on Bitcointalk. Presale began on 19 July 19, 2014 at 0.00000465 BTC/SYS, with Moolah.io as escrow agent. ICO price was .00000518 BTC/SYS. Full launch was announced on 16 August 2014. The ICO raised 1500 BTC of which 250 BTC was used for “buy support.” Moolah (Ryan Kennedy aka Alex Green) stole the remaining 750 BTC. Syscoin has been in litigation against Moolah since October 2014 to recover the stolen BTC.


Who is the team behind Syscoin?

The Syscoin development team persisted with the project despite set-backs associated with the loss of initial funds, working the project in conjunction with their day-jobs during this early period. Development Team consists of Sebastian Schepis, Dan Wasyluk, Michael Wheeler, Jonathan Heald, Soeren Pederson, Sebastien DiMichele.

Syscoin
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Syscoin is What Is Syscoin (SYS)? Founded in 2014 as a fork of Bitcoin, Syscoin (SYS) is a trailblazing blockchain network that synergizes the robust security of Bitcoin's Proof of Work (PoW) consensus algorithm with the versatility of Ethereum's smart contract functionality. Syscoin is not just a blockchain; it's a full-stack, modular ecosystem...Read more