Instructions: How to earn Emercoin by taking advantage of the PoS algorithm
The Emercoin cryptocurrency is based on a hybrid mining method — Proof-of-Work (PoW) + Proof-of-Stake (PoS), which allows users to earn EMC cryptocurrency in different ways.
In PoS protocol, the selection of the computer which will add a new block to the blockchain of the system is random, but chances are higher if one has more coins on their account. This means that earning through the PoS is encouragement for the users to keep their EMC coins in the wallet service, because in this way they support the work of the whole system.
Sometimes, floating around the Internet you can find such terms as: mint, minting, stake. This is all about making money by money.
So, the earning plan on Proof-of-Stake through the cryptowallet software, installed on the PC and using Emercoin interface is the following:
- To gather Emercoins in your cryptowallet. The minimal number of coins to begin earning is 150 EMC. Over the current difficulty (detailed below), this amount helps to produce additional coins, but a lower amount can’t do this. The maximum number is not limited, but you need 8500 EMC for monthly generation. And the coins must be transfered to the account using one transaction. You will receive 150 EMC by transferring 50 + 50 + 50 to different wallet addresses, but this amount will never produce new coins over the current difficulty.
- To encrypt the wallet, selecting Settings > Encrypt Wallet and create a strong password. If your wallet is encrypted successfully, a lock icon will appear at the right bottom of the client. You should encrypt only for your safety, but if you don’t do this, minting will also happen.
- To allow access to the wallet for mining. To do this, you should click the lock icon and in the pop-up window choose the option “Mint only mode”.
If the settings are correct, the lock icon in the right bottom corner will change to a half-open lock icon.
- To maintain coins on file in the wallet open for mining. You can’t spend EMC while keeping coins this way. The minimal storage time of unspent coins in the wallet is 30 days. Only at the end of this period are they defined as “ripe” and can be used by the system to generate a new block. When the “age” of the coins allows them to be generated, their amount is displayed in the field “stake”. The maximum chance of obtaining the right to generate a new block have those wallets with EMC that have been saved there for 90 days.
When saved coins are successfully used by the system for new block generation, the information about the transaction can be seen in the field “recent transactions”, and the used coins together with the payment are displayed in the field “balance”.
The average annual income from PoS Emercoin is 6 %.
On the Emercoin Explorer website, there is a calculator to estimate return on assets in the wallet. Users are required to enter the value of two variables — the amount of their tokens on the account and the number of days during which the cryptocoins were kept in the wallet. The value of the third variable — the difficulty of mining in PoS — is provided by the calculator automatically depending on the current system status. Three of this variables are used by the calculator to estimate the possibility selecting the client’s wallet for new block generation (Minting Chance) — the possibility is expressed as a percentage per day. The calculator also estimates the expected reward in EMC (Estimated Reward).
EMC cryptocurrency mining in PoS is also possible without using the Emercoin interface; for example, you can receive payment while keeping EMC in such on-line cryptowallets as mintr.org. These opportunities are worth talking about, but some other time.
There are some advantages in comparison to mining:
- You don’t need ASIC, a video card or processor unit. Having a simple office laptop with wallet software on it is enough. This means you don’t need to buy expensive equipment, operate it terribly and then bother with giving it to someone.
- The difficulty of PoS is not very high, so it’s much easier to predict revenue, which is always stable. Here is a complexity graph for all time:
What else can you read? For example, a manual on PoS on our Wiki website: