Why was the EARN system implemented?
The idea behind the birth of the EARN system was to replace the well-known Shared Masternodes system, where users had to fill free shares and wait for a node to be fully filled and launched. This sometimes took many days and during this time the blocked funds did not generate any rewards.
*(The previous StakeCube system generated staking rewards for users holding shares in Shared Masternode in collecting mode).
Once the node was deployed it took up to 2–3x the average time between regular rewards from an already working node to get the first reward (in the case of coins based on the PIVX code — most of POS/MN coins).
In addition, if someone from that node withdrew their shares, the node had to be destroyed and put into collecting mode to fill the missing slots.
Of course, during this time, no rewards were generated and, as I mentioned above, after the launch, everyone holding their shares in such shared masternode had to wait again 2–3x avg time to get the first reward.
How the EARN system works
To solve the above difficulties, and improve earning system StakeCube decided to implement the EARN sytstem. This is an innovative and full automatic solution of generating rewards from assets helds by users on their account.
One thing what users have to do is to keep minimum amount of supported assets on their StakeCube account balance or in the open exchange order.
There are no lock-in time requirements, users can withdraw their funds anytime they want.
The EARN system combines rewards from staking pool and masternodes hosted within this solution. As the characteristic of supported assets indicates, staking in a larger pool allows users to receive staking rewards more often than solo staking in smaller wallet.
Bigger staking wallet (bigger weight in network) = chance to get staking rewards is higher.
A part of coins in pool are used to host masternodes which generate MN rewards distributed throught this same earn system.
Almost all assets in this system generate rewards multiple times a day after which they are distributed in one payout each day to the accounts of qualified users. This makes it much easier to track your earnings as well as report for tax purposes.
(Users don’t have to deal with dozens or even hundreds of smaller staking rewards — instead, they have them in one transaction every day).
How much i can earn?
Basically, it depends on the asset you want to invest in. The block rewards for staking and masternodes (which are distributed in the earn system) are hard-coded into blockchains, and are different for each asset. It was a team and the developers of project who decided and coded parameters of the network and reward distribution schemes.
In addition, the amount of rewards that the pool can generate per day depends on the condition of the network. As I mentioned earlier, the larger the staking wallet is - the greater the chances of receiving a staking reward.
The current reward distribution tables should always be checked at the source, i.e. the project website/their github/community servers. Dev Teams during the wallet/network updates may change these values.
Let’s break this down into the components from which the earn rewards are generated:
The frequency of receiving rewards by Masternode depends on the number of all masternodes in the network / number of blocks per day.
The number of coins as a reward per block is encoded in the blockchain, the % of rewards for the masternode and staker also.
Masternodes:
If coin X generates 10 coins per block (70% for masternode 30% for staker), has 1000 active masternodes, and the block time is 60sec (=1440 blocks are processed per day) then the average time required for a masternode to generate a reward is:
1000 masternodes / 1440 blocks per day = 0.69 days
1000 masternodes / 60 blocks per hour = 16.67 hours
1000 masternodes / 1 block per minute = 1000 minutes
It means that single masternode can generate a reward of 7 coins every:
~0.69 day = 16.67Hour = 1000 minutes.
If the network parameters will change i.e. there will be 2000 active nodes in the network, the Masternode will generate reward less frequent acording to the furmula above.
2000 masternodes / 60 blocks per hour = 33,33 hours to generate a reward.
The number of active masternodes in network can be checked in the blockchain explorer for each asset.
You can also use the data agregators like masternodes.online where you can see also the annual ROI for most of masternode coins.
https://masternodes.online/currencies/SCC/
Like you can see on picture above the AVG masternode reward frequency for SCC Masternode is ~11d 12h 38m.
It means that Node will generate a block reward (5.6SCC) every ~11days, not 0.48 SCC everyday like “Daily income” shows.
To understand it better please take a look on the blockchain explorer where you can see the example SCC masternode activity and frequency of getting reward:
https://scc.ccore.online/address/sh9zFont3AVhSjAwjBjtavcnmGN8P6wx6i
Staking / POS / Proof of Stake
In POS you can’t calculate exactly amount that you should get everyday, because the frequency of getting rewards can vary, with average from few days / weeks you should get ROI coded in blockchain *You can use this scheme to calculate ROI on all POS assets
I will make the calculation taking as example FLS coin:
Single staking reward coded in FLS chain is 0.5 FLS per stake (at this stage)
0.5 x 1440 Blocks per day is 720 FLS for all FLS stakers (global) per day
With 6.6M total supply — 2 849 000 locked in nodes you will have 3 751 000 FLS that can stake.
There is 963 789 FLS in stakecube pool — 641 000 Lokced in HotNodes
963789–641000 = 322789 FLS that can stake on SC pool
322 798 FLS (in sc pool) of 3 751 000 FLS (total supply that can stake) is about 8,6% of all FLS supply that can stake.
8,6% of 720 (daily staking rewards in whole FLS network) = 62 FLS per day
As you can see in the above screenshot from a public source visible on the StakeCube discord server, the rewards distributed in the EARN system are slightly higher than those calculated from just staking.
Based on this data you can see that i have received average 1,7 FLS daily in the latest 4 days. Holding ~7k FLS of 323K FLS in pool i have a 2,16% of all coins that generating earn rewards.
2,16% of 65,34 FLS (latest earn system income) is ~1,4 FLS Which is 100% correct and satisfying amount.
Please keep in mind that the assets are not locked for StakeCube users, people can move their funds and sometimes / when the movement is higher than usually/ the rewards generated by Earn system can be lower.
This is normal because deposited coins have to mature before they are able for staking, and those withdrawn from the platform do not generate rewards.
Summary
The Earn system is very simple from the user’s side, just deposit coins and start earning. It does not require any technical knowledge, and no fees are charged (at least so far). Earnings are slightly better than regular staking, and with more Masternodes that will be launched in this system, earnings will surely increase as well.
If you don’t have enough coins to host a full masternode in NodeCube, or the hosting fee exceeds the income from the masternode then the EARN system is a great alternative.
Keep in mind that in order to start earning rewards from the Earn system you need to have a minimum amount of coins (this is usually a small amount of less than a dollar).
On picture below you can see the required minimum amounts of supported assets and the latest EARN system rewards:
Of course this is not financial or investment advice, it is always a USER obligation to make own research of chosen project.
This article showing and explaining the EARN system available on the StakeCube platform.
Thank you for reading, and I wish you much success in the Crypto World!
