Are you staking?
The mechanism behind most Proof-of-Stake (PoS), or our own customized and unique Proof-of-Stake-Velocity (PoSV), is a process called staking. Staking, or allowing your actual coin holdings to help secure the network acts in our network as a replacement for Bitcoin’s energy-intensive mining, and allows all Reddcoin users to receive rewards proportional to their holdings, whether staking on mobile (Telegram!), PC, Linux, Mac, Raspberry Pi or something else. We encourage interested users to look into the mechanics and details behind staking by starting by the “Redd Paper” on the reddcoin.com website. The relevant point to this article is that we’ve observed that only a small proportion of users are staking, for a number of reasons.
The network has not grown by the planned-for 5%, but rather closer to 1% year-over-year since our inception in 2014, and this upgrade is meant to drive the network more closely toward that goal of organic growth and user rewards, while incentivizing users to tip and use the coin. For those actually taking the care to stake and secure the network and its transactions, the rewards from PoSV v2 have been multiplied accordingly. As per published technical details, the network will attempt to hew more closely to a 5% annual rate of return but multipying actual returns by the right multiplier to bring the network growth as a whole to where it needs to be. The effective result of this is that in execution, if 20% of the network is online and staking, their resulting rewards will be multipled by a maximum of 5x, leading to their effective personal return of 25% annually. This will adjust on a dynamic and sliding scale up to 100% participation of stakers. If the network staking level rises to 33.3%, the effective multiplier will be 3x, at 50% it will be 2x, up to 100% reaching 1:1 (or the same stake rewards as are being received today).
In addition to these above recalculations, and multiplied rewards to active users, the new PoSV v2 code includes a dev support fee of 8% of the total reward, deducted from each enhanced stake rewards received, once accepted by the network. These funds are sent from each wallet to an address controlled by the Reddcoin Core development team with the intention of using such funds in a few specific ways:
1To provide financial and resource support to the further development and operational costs of Reddcoin (RDD) and advance adoption and use of RDD and related technology.
2To provide a community fund to be used for compensation for community members who have experienced loss, technical issue or otherwise have a valid case for replacement of their coins.
3 To provide a fund to be used entirely for charitable causes and deserving recipients, as determined by general consensus and discussion within the community and team.
These three aspects of our intended direction may be understood more clearly by reading the original announcement here: https://medium.com/@techadept/faith-hope-charity-official-announcement-reddcoin-rdd-upcoming-consensus-fork-posv-v2-7b570997ea18
Should you start staking?
Yes! For a few reasons. Some selfish, some generous. Something for everyone.
- Staking right now pays you 5% per year. Not bad just for holding them in a wallet. On a cheap raspberry pi, a Linux box, a Mac, an old PC. No heavy special equipment required. Looking at you, BTC.
- Staking helps secure the network. We need that. Every user staking is like a brick in a wall that can only stand if all nodes contribute.
- Staking validates transactions, secures them, and generates and signs blocks on the network. That’s also really important. A robust decentralized network needs as many distributed nodes as possible, all agreeing on the blokchcain status and what blocks are valid, together. That’s called “consensus”.
- Right now, your staking has special significance to Reddcoin. Every time a ReddHead successfully stakes a block and receives staking rewards (trading accumulated coin-age for actual coins, see our Redd Paper on reddcoin.com for details), the blockchain advances, about once a minute, or 60 times an hour, roughly 1400 times a day.
- The new 3.0 Reddcoin Core wallet clients are “watching” the block count over a rolling window of 10000 blocks, or roughly a one week period. Supermajority of users will be achieved and activation of PoSV v2 will take place only once the network has detected that 9000 of the last 10000 blocks are of the version staked by the new v3.0 wallets, or a supermajority of 90% of all active stakers in that period.
- That level of network support is required to reliably prevent competing chains and forks on the Reddcoin mainnet, and was implemented as a safety measure following extensive modeling and testing.
- It is also a bit of a hill to climb to make sure all ReddHeads staking know to upgrade to continue to support the networks and enhance their own stakes as well. So we on the Reddcoin Core team need everyone’s help we can ask for.
If you’re a Reddcoin (RDD) holder and you’re not yet staking, you’re missing out, and you could help us too. Download the best wallet for your computer from the below links, follow the easy instructions (and join some of our social channels too).
If you’re a Reddcoin (RDD) holder and you’re already staking, great! Make sure you’ve upgraded to 3.0.0 from the links below and help us get to supermajority!
And if you have RDD on an exchange, and don’t have a computer but still want to support, our Telegram bot is stake-enabled and will support the supermajority transition with all RDD deposited while it pays you direct rewards. And you can chat with the devs and community members at the same time! (https://t.me/ReddcoinOfficial)
If you’re not a ReddHead yet, and you think we’re all crazy, you’re not wrong. We’re not taking over the world, we’re not repalcing bitcoin or facebook, and we’re not in secret talks with McAfee or Musk. But we are an original altcoin, a uniquely rewarding staking crypto, fast and usually fee-free, and a fun and genuine community, we don’t obsessively watch prices, and once this PoSV excitement is done and activated, we’ve got insane plans around ReddID, social networks and some new partnerships for the new year. We hope you’ll catch Reddcoin fever and become a ReddHead today!
Technical info and links:
Github Code & Wallet Links & Release Notes:
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Reddcoin Core 3.0.0
Version 3.0.0 is the official release version of Reddcoin Core.
This release features PoSV v2 activation once a supermajority threshold of consensus has been reached.
It is particularly important that all users upgrade, as once PoSV v2 is enforced, version 4 blocks will be rejected from the network entirely . Therefore v3.0.0 is a strongly recommended update for all users.
This release activates PoSV v2.
The design of PoSV v2 is to increase the stake rewards awarded to those users staking such that the overall network inflation is at 5%. These rules will only activate once a certain number of blocks are staked with this new version. It will take effect after 90% of the network (9000/10000 blocks) are generating v5 blocks (10000 blocks is equivalent to 7 days worth of blocks).
PoSV v2 applies an inflation adjustment value to the stake reward to steer the overall network inflation. The calculation is bound within upper and lower limits and the scaling factor is determined by the output of the last months stake rewards generated.
Developers Funding Address
As discussed and generally agreed to within the Reddcoin community, this release activates sending a percentage (8%) of the overall stake reward to the Developers Funding address. These rules will only activate once a certain number of blocks are mined with this new version. It will take effect after 90% of the network (9000/10000 blocks) are generating v5 blocks (10000 blocks is equivalent to 7 days worth of blocks).
Note: This is a hard fork, as once the above rules are activated (90% upgraded), earlier wallets will reject the block containing the stake transaction.
Resolved error while compiling QT for fPIC
Minor UI display improvement
Updated copyright year
Blockchain data for both testnet and mainnet along with instructions can be downloaded from github.