Waves Staking – Everything You Need to Know
The process of staking Waves is untraditional due to the unique consensus mechanism the network uses. Instead of a classic Proof of Stake system where users get rewards for staking their coin holdings, it uses a Leased Proof of Stake (LPoS) mechanism. With this consensus, users can create a masternode and receive rewards or lease their WAVES coins to a masternode and receive a percentage of the reward. To become an active node, you will need at least 10 000 WAVES. However, the higher the amount of coins the masternode has, the bigger the reward is. Hence, leasing more of your coin holdings will net you more rewards. In this article, I will show you how exactly to stake WAVES coins.
Pros and Cons
- Waves Client – an all in one tool that contains the core wallet, decentralized exchange, and a token release tool
- Very easy and intuitive token creation
- Decentralized Exchange (DEX) allowing users control of their funds without any limits to withdrawals. Low fees and near instant trades with an amazing interface
- Partnership with Deloitte’s CIS department and other big market players to develop ground rules for all ICOs
- Currently, there are limited customization options when creating tokens
- Limited gateways for DEX, which restricts it from becoming a truly global exchange and has only a few coin options on it
- No reputation system for ICOs
How to Stake Waves
As I mentioned before, staking Waves is done using LPoS, which means you will need to lease your coins to a masternode and receive rewards based on the amount you leased out. The currency that you lease to the nodes never leaves your possession and the nodes do not have the ability to spend them. You can always stop the process with just the click of a button in the wallet interface. Before I move on to the staking itself, I would like to mention the minimum requirements that you have to take into consideration in order to stake Waves.
Minimum Requirements
- You will need a Windows 7 or Linux OS installed on the device
- An installed and configured Waves Core Wallet
- At least 30GB of hard drive space
- It is also necessary to have at minimum 3GB RAM
- WAVES doesn’t offer a cold staking option, which means that the device and wallet need to be online 24/7 in order to take full advantage of the staking rewards.
Summary: The minimum number of WAVES coins that you can lease out to a masternode is 0.002 WAVES, which you can always access and take back at any time through Waves Core Wallet. In short, you will need to download and install the wallet, so you can hold your WAVES coins. Then you can go to an exchange and buy the WAVES and send them to the core wallet. After everything, configure the wallet and choose which node you will lease your currency to, as different nodes will offer different rewards based on their activity.
Waves Wallet Setup (GUI)
Step 1: Download & Install the Official Wallet
First, you will need to download the official core wallet. You can do this from their official webpage linked here and click on Download Client. Once the download is complete, run the installation file and click on the Get Started button once the new window appears. Make sure you have enough hard drive storage as I mentioned in the minimum requirements section.
Step 2: Encrypt the Waves Wallet
Maybe one of the most crucial steps is encrypting the wallet. Without doing this, you will not be able to stake and lease your coins to nodes. Also, encryption secures your funds. To do this, open the Settings menu and click Encrypt Wallet. It will ask you to set an avatar and write a strong password. After that, you can press continue.
Step 3: Backup the Waves Wallet
This is the most important part if you ask me. Backing up your wallet adds another layer of security for your holdings. Go to the File menu and select the Backup option. It will ask you for a secret phrase, which you should not forget and then you can click on Back Up Now. The platform will now advise you that there is an increase in the frequency of scams and phishing attacks, to which you should press I understand. It will show you a recovery phrase, which you will need to write down and confirm in the wallet that you have written it down. Verify it by clicking on the words in the right order and then press Confirm.
Step 4: Transfer Coins to the Wallet
You need to transfer your WAVES coins to the wallet so that you can move on to the next step. Go to your wallet and click your avatar on the top left corner. There you will find your wallet address, to which you can send the coins from the exchange.
Step 5: Leasing with the Waves Wallet
The last step is to lease your coins to a masternode of your choice. When you open your wallet, there will be a button called Leasing that you need to click in the main menu. After you click it, a new tab will open with new info inside. Find the Start Lease button and click it to start the lease process. This will take you to a new tab, where you will find two boxes. One of the boxes specifies the address of the masternode that you would like to lease to and the other you can use to input the amount you would like to lease. Fill in the fields and re-confirm the information, then you can press the Start Lease button and then Confirm. Once you have done that, you will be able to see a new transaction in the Leasing Transaction Table, which means that you have successfully leased your coins to the node.
Waves Staking Reward
Depending on which masternode you choose to lease to, you will receive your rewards on a weekly or monthly basis. For supporting and securing the WAVES platform in this way, you can expect on average 2,1% returns to your investment per year. One of the great benefits of the WAVES platform is that on the 15th of every month, tokens are being airdropped to your wallet, which you can sell on the decentralized exchange for WAVES coins. The way your rewards will be distributed is that you will receive a share of transaction fees on a regular basis because the masternode itself provides the security and stability of the network. They are the only full node in the platform that has validation privileges.
How to Maximize Rewards
With WAVES staking or leasing there are no real shortcuts to maximizing your reward or straight up increasing it. What I can advise is to choose the appropriate masternode, to which you will lease your coins to, as different nodes have varying payout periods, activity and luck. An alternative method you can use is to have multiple core wallets on different devices and lease to different nodes at the same time. This could increase your rewards when your funds are more spread out.
-
Pool Staking
- The whole architecture of LPoS can be considered similar to a mining or staking pool. You and other users choose a masternode and lease to it, creating something like a pool of coins that the node uses to run and validate transactions with. I would like to note again that any leased coins, still remain in your possession. The nodes do not have any rights to spend or use the coins in any way. You can cancel the leasing at any moment.
Figure out Your Profit with the Waves Staking Calculator
Before you invest into the network and buy coins you might like to check out roughly how much you will be rewarded for leasing your coins. You can use the calculator below, but please be advised that its results are only a rough estimate.
I will go ahead and give you an example for your earnings. If you are leasing out 1000 WAVES, you can expect something in the ballpark of 0.06 WAVES daily, 0.40 WAVES per week, 1.75 WAVES monthly and roughly 21 WAVES per year. This will result in a 2.10% annual ROI. Of course, the percentage per year can vary depending on your choice of node and balance.
FAQ
WAVES cannot be mined, as the consensus method is Proof of Stake. You lease to nodes, which then mint/stake the coins.
Yes, it is possible to use Raspberry Pi for staking, but you will need to use the CLI wallet.
After you have sent the coins to the wallet and lease them to a node, you will need to wait at least 7 days in order to be eligible for receiving rewards. The rewards are proportionally based to the time you are leasing.
In my opinion, yes. It is worth it to stake WAVES as the more stakers there are, the better the network stability and security is.
Yes, the maximum supply is limited to 100 million WAVES.
Because it is easy and straightforward. You lease your coins to a node and you are pretty much done. A great way to secure some passive income.
No, there is no current minimum other than 0.001 WAVES, which is the smallest amount you can obtain.
About Waves
WAVES is a fast-growing decentralized network that prides itself as an all-in-one tool in the crypto sphere. It contains its own core wallet, decentralized exchange, and token creation tool. According to their statistics, they have over a million wallets created and over 21 thousand different types of tokens issued. These numbers are amazing and are continuing to grow. Their unique in-house DEX shows volumes of up to 2 million USD per 24hrs.
Unique Selling Points
As the main goal of WAVES is to be on the top of the food chain when it comes to cryptocurrencies, the network offers some amazing tools. The most unique of them being the total implementation of a wallet, exchange and token creation tool into one software program and on one blockchain.
Team
The whole crew of Waves consists of an Executive team with all the lead developers and CEOs like Artem Kalikhov, Sasha Ivanov, Leonid Matveev, Maxim Pertsovskiy, a developer’s team and a list of ambassadors for each country. They created the WAVES platform from the ground up and the end result is perhaps the fastest and most secure, user-friendly blockchain.
Network
The WAVES network is unique with its token creation and exchange features. This functionality attracts a lot of users and big investors. Every device that they have active on the network is considered a node or a full node if they decide to run one and have 10 000 WAVES coins. The full nodes are providing validation to transactions and blocks.
Privacy
The coin is not privacy or anonymity oriented, so there is nothing that I could add that is special.
Future
As you can already tell, the WAVES project has a very active development team behind it and thus the future of the platform looks great. If you would like to see their 2018 roadmap, you can check it out here.
Useful Weblinks
- Official Website: https://wavesplatform.com
- Announcement Page: https://bitcointalk.org/index.php?topic=3223136.0
- GitHub: https://github.com/wavesplatform
- Block Explorer: http://wavesexplorer.com
- Whitepaper: https://blog.wavesplatform.com/waves-whitepaper-164dd6ca6a23
- Socials:
- Twitter Discord Telegram Reddit/Subreddit Facebook