The advantage of crowd staking

BNC Network
Jan 24 · 3 min read

BNC Crowd-Staking (BCS) is a new development by the BNC network. The idea consists of a mining pool managed by a Master Node (MN). Master Nodes are created by gathering Sub Node (SN) validators who combine their staked tokens in order to enhance resources for validation probability over the network.

Starting at the most basic level, the regular stake nodes. These are private individuals or small businesses with basic computing power that would like to participate to earn rewards by validating transactions on the BNC network. Both BNC stable coins and/or BNC tokens are able to participate as stake within the node. This unique BNC feature is called “Ghosting”. “Ghosting” is the ability to stake stable coins via API price calculation against the BNC token, while mimicking its existence within the node. This allows users to stake their capital without exposing it to the volatile crypto market, allowing for zero exposure.

A Sub Node (SN) must have a minimum worth of 100 BNC tokens and can choose to contribute their assets to a MN mining pool in order to increase both of their probability of successfully capturing a block to mine. SN will earn a proportionate amount of profits by the size of their contribution to the pool-of-stake organized by the MN. In addition zero exposure stable coin stake participation, SN’s are not exposed to the risk of block penalties.

A MN is an online server which secures the network by locking up a significant number of coins as collateral in order to participate in the consensus protocol for a decentralized network. The coins are “locked up” in the network and while functioning as a MN, the coins are unable to be moved or used. No one is required to function as a MN any longer than they pre-determined to.

Super Master Nodes (SMN) consist of companies, businesses or high net worth individuals who have applied to be a SMN following the completion of at least 100 successfully mined blocks. Applications are submitted through the Blockchain network and will need to go through a voting approval protocol on the BNC network. Once approved by the Network a MN will be categorized as a Super Master Node, now able to gain leverage of his stake with up to 100% from public users (SN). The SMN participants all earn a proportionate amount of block rewards. Our main vision for the SMN is to create a competitive SMN market, where SMN’s are always seeking higher stake equity while building a publicly advertised brand to encourage SN to participate in their crowd stake pool. On the BNC network, if and when a SMN attempts to violate a validation or is simply offline when the time comes to validate the blockchain, fines will be deducted from the SMN’s side of the stake only, while paying out to all SN participants in the pool the same amount penalized by the blockchain.

The gateway allows existing exchanges to store their hot storage assets in the BNC crowd staking pool. In turn, the exchange will be able to manage its private pool or a crowd stake pool for its client’s funds. This feature allows an exchange to act as a SMN, using its shared wallets to mine and distribute rewards with the users of the exchange.

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