Waves is an open Blockchain Platform. The market cap is $139,942,513 and the 24h volume is $70,208,636.
Waves blockchain consensus is achieved via Leased Proof of Stake. Investors can participate via staking or leasing. Currently there are 2 options to earn passive income and staking rewards with your Waves investment as outlined below.
- How to stake Waves?
There are two main options for staking on Waves Platform: running a full node and generating blocks yourself, or leasing your WAVES to a full node.
Block generation is generally the best option for those willing to install and run a full node. To do so, you will need to maintain a node with a balance of at least 1,000 WAVES. Additionally, you will need to factor in hosting costs for your server, which you can rent from Amazon or any other cloud provider. You don’t need anything too fancy — 2 vCPUs, 4 GB RAM and 40 GB storage should be enough. As an example, Digital Ocean charges $20 per month for a Droplet with these specifications. Block generators collect 40% of transaction fees for the generated block and 60% for the previous block. This 40/60 ratio is due to the specifics of the Waves Platform’s Waves-NG block generation protocol.
Those who do not want to install a node themselves and pay the running costs can still collect revenues by leasing their WAVES to other nodes. By doing so, WAVES holders can not only generate income but also help make the network more secure: the greater the proportion of total tokens leased out, the more expensive an attack on the network will be.
Different nodes will offer varying proportions of the WAVES they receive as rewards to lessors, as well as their own tokens and other benefits.
- What are the requirements for staking Waves?
For block generation
Unlike the Proof of Work consensus algorithm, Waves Platform’s Leased Proof of Stake consensus doesn’t require expensive computing equipment for block generation: an instance with a dual-core processor, 4 GB RAM and 40 GB (SSD) storage is sufficient, and a balance of at least 1,000 WAVES on a node’s account. As block generators don’t need to continually upgrade costly equipment, they can instead afford to raise their stake to maintain their chances of block generation.
WAVES holders can generate income and help make the network more secure by leasing their WAVES to full nodes: the greater the proportion of total tokens leased out, the more expensive an attack on the network will be. All you need is to have some WAVES tokens in your balance to lease them out. Different nodes will offer varying proportions of the WAVES they receive as rewards to lessors, as well as their own tokens and other benefits.
- Will the rewards for staking Waves change over time?
Waves Platform introduced governance for decentralized monetary policy, which means block generators on the Waves network are now able to vote to change the size of the block generation reward. The established block reward is to be valid for 100,000 blocks, which roughly corresponds to 69 days. The final 10,000 blocks (roughly a week) of each 100,000 block period will be a voting period for the following 100,000 block stretch.
During the voting period, block generators vote for higher, lower or unchanged rewards by writing their decision to all created blocks. The reward can be changed in increments of 0.5 WAVES at a time. For the reward size to be raised or reduced, over 50% of all block generators will have to vote for it. Otherwise, the reward size will remain unchanged for the next period.
As for the rewards for lessors, different nodes offer varying proportions of the WAVES they receive as rewards to lessors, as well as their own tokens and other benefits.
- Is there any risk in staking Waves?
A user who has leased their funds can spend them at any time, as the funds do not leave the user’s account but are only locked for leasing. Funds are unlocked immediately when a lease is cancelled. The only risk for users is that the block generator will not meet their stated terms and conditions and will not transfer remuneration to users who have leased their WAVES. In that case, users will not make any profit, but they will not lose their leased WAVES. Cheating and payment evasion will not bring significant benefit to the block generator; moreover, their deception will discourage all current lessors, so that leases will be cancelled, leading to lower profits.
- Are Waves coins locked up for staking?
A block generator’s stake is the sum of their own available funds and the funds leased to them for more than 1,000 blocks. The block generator’s own available funds can be withdrawn out of the stake and used at any time, while the funds leased to them cannot be influenced by the block generator in any way. They cannot transfer or affect them at all – they are even unable to refuse any funds leased to them. On the other hand, users who have leased their funds can cancel their leases at any time and with just a few clicks, since the leased funds do not leave the user’s wallet and are simply locked in the account.
- How often are rewards paid out?
The amount of compensation and the frequency of transfer will vary, since each block generator determines the conditions of payment independently. Some block generators transfer funds to their lessors daily, others weekly, and so on.
As for the rewards block generators receive from the network, these are distributed at the moment of block creation. A block generator can use the rewards they receive immediately.