Velas Products: Staking

There are two options for staking in the Velas system — creating your own pool and become a validator or become an existing pool delegator.

Pool rewards are proportionally distributed between a validator and the staking delegators (if delegators’ percentage of stake is below 60%, otherwise delegators’ rewards are adjusted accordingly and the validator receives 40%).

DPOS (Delegated Proof of Stake) provides the opportunity for delegators to “vote” on potential validators by staking tokens on them and increase their chances of becoming validators.

Staking epochs

The network’s operation is divided into staking epochs (which can be changed, currently pegged to every 6 hours). A new staking epoch begins immediately following the termination of the previous epoch.

At the beginning of each staking epoch, the algorithm selects a new validator set from the current list of candidates and creates a snapshot of the current state of the validators’ pools.

Become a validator

To create a pool, you must first install a node (a node can be installed from the Staking Page in a wallet) and then stake on your pool. The total stake amount of a candidate on their own pool cannot be less than the candidate’s minimum stake (1m VLX). After a new active pool is created, the candidate can be selected as a validator at the beginning of the next staking epoch and starts receiving rewards.

If a candidate withdraws all of their coins from their pool, the pool becomes inactive and does not take part in the next validator selection process.

Become a delegator

To become pool delegator participants should stake at least the minimum stake (10k VLX) on the existing pool. If the pool will be chosen as a validator, the delegator shares the pool reward proportionally with other participants.

Choosing the best pool

There is no one best way to choose a pool to stake in. Two main things you should pay attention to — total stake amount and number of delegators. The bigger the total pool’s stake is — the more often the pool becomes a validator. But a big number of delegators means that you will have a smaller part of the overall pool’s reward.

Withdrawal and order to withdraw

Coins can be withdrawn from a candidate’s pool at any time if it’s not a validator in the current epoch. Pool participants (validator or delegator) can create an order for withdrawal from the pool and claim it after the epoch ends.

Stake Instructions:

For the delegator:

1. To stake in pool you should have at least 10,000 VLX available in your wallet.
2. Open Velas Wallet
3. Go to Staking Page — Delegator
4. Select a pool to stake to
5. Enter the amount you want to stake (with a minimum of 10,000 VLX)
6. Click ‘Apply’, and then ‘Confirm’

For full node:

1. To get your own node, you should have at least 1,000,000 VLX
2. Open Velas Wallet
3. Go to Staking Page — Node
4. Follow the instructions for node deployment using a created script
5. Check the node accessibility using the list “Check Your Node” from our Node Page
6. On the last section named “Become Staker”, enter the amount you want to stake (at least 1 million VLX to do so)
7. Click ‘Apply’, and then ‘Confirm’

This is one of a series of articles outlining the complete package of Velas products on offer, and what the team has been working hard on over the past year. We’re covering everything from AIDPOS to Integrated Crypto Wallets and everything in between. You don’t want to miss it!

Velas Website | Twitter | Instagram | Facebook | YouTube |Telegram