Basic Research and everything you need to know about staking VSYS.
This Guide is sponsored by V Systems and written by the Staking Rewards Team.
Here we will present emerging projects, products and services of the staking sector.
The first selected project is V Systems. A Proof of Stake cryptocurrency and Blockchain Development Platform.
So let´s dig into it and figure out the basics, core principles and everything around staking VSYS!
Basics
What is V Systems?
V Systems is a native Blockchain Database and decentralized app Platform aiming to create a new digital economy. It facilitates Smart Contracts, Sidechains, user-friendly development tools and the Supernode Proof of Stake Consensus.
How is the Team behind V Systems?
The leading architect and innovator behind V Systems is Sunny King. He already wrote the PeerCoin whitepaper together with Scott Nadal in 2012 and led the project to become the first ever Proof of Stake Blockchain in the world. Sunny King is now leading the team of over 30+ developers based in Hongkong, Silicon Valley and New York. Scott Nadal is now the CTO of V Systems.
How was V Systems launched ?
V Systems conducted a private sale in Q1 2018, where 35.88% was allocated to the Contributors.
21% was reserved for the team (vested over 60 month) and 43.12% was given to Ecosystem, Enterprise Partners and Developers, who are now building the project.
fund, enterprises partners, developers who are now developing the projects
The Price of the Private Token Sale was 1BTC = 100,000 VSYS.
The V Systems Mainnnet was then launched on 27.11.2018.
In March 2019 V Systems arranged another small public IEO public sale on the ZB Launchpad, where 21,000,000 VSYS were sold for 0.0265 USD (which is at current prices around ROI x4).
Core Principles
User-friendly blockchain creation
V Systems is aiming to enable very user-friendly blockchain creation that makes it easy for businesses to digitalise their operations from sales to receipts and payments.
They will direct benefit of V Systems Blockchain Security, Traceability and distributed verification capabilities.
Simple templates and modular elements allow blockchain deployment without coding or lengthy development.
The Team is also focusing on embedding blockchain traits such as data synchronisation and integrity into several existing mobile phone operating systems to create a new decentralised mobile internet network with native and responsive browser support.
Cloud Blockchain Database Platform
Having in mind that blockchain technology will become cheaper and easier to scale over time, V Systems visions to be optimized for data storage that can facilitate full object-oriented data.
To run databases on blockchains, traditional user accounts can be substituted with public-private keys and addresses in blockchains. The strong centralised administration role can be achieved with business logic inside client/node software in the form of privileged key pairs. For example, data that is inappropriate or illegal, or that represents a violation of the system, can be marked by the administrators to be ignored by the nodes. Customer identification can also be achieved inside the client/node software in the form of a white list of public keys that have passed identity verification — and only whitelisted identities will be recognised by the software.
This equips Blockchain-based Databases with high concurrency, customisation capacity, efficient indexing, data security and a host of other desirable application scenarios.
Supernode Proof of Stake
Constant Interval Block Minting
SPoS has a fixed sequence to release blocks. The mechanism ensures that blocks are minted exactly every 4 seconds. There are no possible variances for the Block Time.
Supernodes
There is a preset quantity of active Validators / Supernodes in the V System Network. Starting with 15 supernodes at the mainnet launch, the number of supernodes will increase to 30 and 60 along with ecosystem growth.
Cold Minting
Coin holders can lease their VSYS coins to any Supernode candidates through the leasing function of V Systems wallet. They keep full control of private keys and are not required to run nodes.
As a minting pool, the Supernode starts to mint VSYS coins using leased coins and generates blocks to obtain coin rewards. The obtained rewards will be proportionally distributed to VSYS coin holders according to leased number and time of VSYS coins.
Equal Minting Rights
60 minting slots are defined, each corresponding to a specific second within a minute. Every slot is given an equal share of minting right. A supernode must acquire the ownership of a slot in order to obtain the respective right. Eligible listed supernodes take a sequential turn to work on a minting slot to perform block validation.
Stake Liquidity
SPoS uses an Average Balance for the minting to guarantee stake liquidity, in which the minter can spend or transfer the owned stake at any time. This prevents the system from an attack with busy connections.
Staking VSYS
How to stake VSYS?
The easiest way to stake VSYS is by leasing the coins to a Supernode of your choose. Supernodes maintain the blockchain and receive rewards in return. Those rewards are proportionally shared with the person who lease their stake to them. The more stake Supernodes receive, the higher will be their individual rewards.
Supernodes charge fees between 18 – 22% of the earned rewards.
To start minting new coins by leasing to Supernodes, you simply have to choose a Supernode and make a single transaction inside the official V Systems Wallet.
- Open a wallet for coin deposit
- Select the “Minting Function”
- Enter the Supernode address of your coice from https://vsysrate.com/
- Confirm and start earning
What are the requirements to stake VSYS?
You can start leasing your coins to a Supernode with any amount you wish. There is no minimum and else there are also no further requirements.
Is there any risk to stake VSYS?
There is no risk to stake VSYS. You will always keep possession of the private keys by leasing to Supernodes. In case your chosen Supernode fails to maintain constant uptime, you will only miss out a small percentage of the rewards.
Are the VSYS coins locked up in staking?
There is no lockup period. Coins are freely transferable at all times.
How often are the rewards paid out?
Supernodes pay out rewards to their leaser in daily, weekly or monthly intervals. It is recommended to make yourself familiar with the payout schedule of the supernode of your choice before start leasing to them.
What are the criteria to choose a Supernode?
A list of all the 15 active Supernodes can be found here. You might want to look at the Fees, Efficiency and Interest Cycle when choosing a Supernode. Also you could consider the use of funds from the Supernode.
Some Supernodes reinvest their profits from the Fees into the Ecosystem, so that could be a strong factor considering you might see VSYS as a longterm investment and want to support the ecosystem development.
How much can be earned staking VSYS?
The annualized reward rate would be 15.24% considering 35.58% of all coins participate in cold minting and an average Supernode Fee of 20%.
Depending on the Supernode you choose, the reward rate would be between 14 – 17%.
If you reinvest your funds into cold minting, the rewards might be slightly higher as well.
To track the change over time, make sure to check back in at Staking Rewards.
Will the rewards for staking VSYS change over time?
Yes the rewards highly depend on the number of all coins participating in cold minting. The rewards might decrease over time as more funds are put on stake.
How to become a Supernode?
There are specific requirements to become a Supernode. But to become an active Node who is eligible to receive rewards, it is required at current conditions to receive at least 90 million of leased VSYS coins. There is no required self-stake amount. Supernodes are very similar to the traditional Mining Pools in PoW.
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