The Enecuum team works hard to bring you the best experience possible, and one of the things we would like to tell you more about is the implementation of PoS mining. In this article, we will go through ins and outs of Enecuum PoS, so that everybody who is interested can get up to speed and know what to expect in the future.
Let’s start with an analogy. Imagine a PoS node as an upcoming prospector. He wants to start a silver mine, but realizes that he doesn’t have the funds to get the necessary equipment. Prospector’s choice is to then go all around the block and attract funds from other people. He promises his leasers a fixed payout from the mining operations. Now, if he fails to find any silver, a mine collapses or he’s just too lazy to go out there and work, he will suffer the most, as he still pays the leasers and if the work isn’t possible for him, he’ll just spiral further into debt. That is how we imagine Enecuum PoS working since we want the leasers to get paid regardless of the situation, and the miners to work to the best of their abilities, for the benefit of everyone.
One of the biggest traits of Enecuum PoS is its reliability and safety. Everything here happens on-chain and all delegations and reward transfers are registered in the system itself. Not only that, but the validator is kept in check by a smart contract of sorts, which makes it near impossible for them to act maliciously towards their delegators.
What this means is that the validator has to set all the rules of his PoS node via said smart contract. What’s more, staking rewards aren’t tied to the block rewards of the PoS node. The contract demands that the validator guarantees a fixed reward for the delegators, independent of how the node itself performs. That gives a PoS node more incentives to perform well, as the reward distribution happens independently of their willingness or performance.
The entire system could be viewed as a softer form of slashing. While it may seem somewhat harsh, it is a responsibility every PoS node takes on, as Enecuum is not a pyramid scheme. PoS nodes are an essential part of our blockchain, so we need to make sure that they are always doing their best both for their and blockchain’s benefit.
In regards to the more technical aspects, we plan that only 100 richest nodes could become validators, though that is a subject of change. There is a minimum amount of funds that is required to get into top 100, and should a PoS node fall below it, they will lose their validator privileges.
Delegation will be available for anyone who uses Enecuum, a move that will surely benefit our iOS users who can’t participate in PoA mining as of the writing of this article.
Currently, our team is also hard at work on a new project — Smart Staking. Right now we can’t tell you the details, but we assure you, you want to keep an eye on the news regarding it. ;)
That should leave most of the ground covered. Stay tuned, as staking on the MainNet will launch as soon as possible. We hope that cleared up some of the questions upcoming validators and delegators might have had!