Staking on Credits Platform
We are delighted to finalize community poll on the subject of Staking implementation. 88% of total has supported the idea of Staking implementation.
It’s worth noting that it is one of the first practices in crypto space where a decision is made on the base of community poll. We are in favour of this approach in further as the community opinion is the priority of the team, which seeks making business on the best principles of decentralised society.
Let’s move on and take a closer look how Staking on Credits platform will look like.
Staking basics on Credits platform
The long-term value of blockchain platform with internal cryptocurrency can only be achieved with increasing of coins utility. One of best solutions for such aims is Staking. Staking is a method that provides incentives for participation in decision making mechanism, especially when node is chosen as “trusted” or “recording”. Staking will encourage users to perform valid actions and receive rewards, presented in the form of commissions.
Staking, in terms of Credits protocol, means setting the minimum amount of coins, required for a node to participate in consensus mechanism and get rewards. Users will need to store Credits internal currency (CS) on their wallets. The amount of stake won’t affect the frequency of node participation in consensus protocol. Rewards are formed on the base of fees, collected in the result of the following operations:
- Payment for the transfer of Credits (CS) cryptocurrency between the platform participants;
- Payment for the deploy and execute of smart contract;
- Fee for the transfer of tokens created on the Credits platform;
- Purchase of information from third-party sources for services within the system.
Running node for other purposes such as sending transactions, deploying smart contracts through Desktop Wallet and connecting of dapp with Credits network will be free.
Advantages of Staking
Except the increasing of Credits (CS) coin value the implementation of Staking has good impact on the whole platform security. Staking diminishes the threat of a 51% attack, as it is resource intensive way to take a control over the most nodes of total. Moreover, staking prevents the threat of forks as the common amount of valid chain stake will exceed the amount of fork chain stake, which automatically excludes the fork from the network.
This table is based on calculations in Credits internal cryptocurrency (CS). Single transaction fee is 0.005 CS. It was calculated according to average price between the lowest possible fee (0.00042 CS) and highest fee (0.01 CS). Final node reward amount is calculated monthly.
Staking will be implemented on Credits platform by means of storing 50 000 CS coins on the wallet. Subsequently, the amount of stake, equivalent to fiat, will be decreased. However, developers, who are willing to use Desktop Wallet with the purpose to send transaction, deploy smart contract or connect their decentralized application with Credits network, will be able to run node for free.