How does staking work on the Takamaka blockchain?

Team Takamaka
Published in
3 min readAug 24, 2020


While Proof of Work systems rely on mining to add new blocks to the blockchain, Proof of Stake networks produce and validate new blocks through a process called “staking”.

Blockchains based on a Proof of Stake algorithm usually employ their own particular staking currency. Some networks, such as Takamaka, adopt a two-token system where rewards are distributed using the secondary token.

Not to mention that in most Proof of Stake networks, validators freeze their coins in order to be randomly selected by the protocol at specific intervals, and thus creating a new block. The stake itself is what encourages validators to keep the network safe: if they didn’t, their funds would be at risk.

Takamaka, unlike other Proof of Stake, rather than freezing your coins for an entire EPOCH, developed a new PoS mechanism.

Hold coins, earn passive income

Staking allows users to earn rewards from the cryptocurrencies they own. This system also gives the opportunity to become an active member of the Takamaka blockchain. However, in order to take part in the staking process, users must prove they own at least 200 TKGs to stake on a node at the 8,000th block, corresponding to about 1/3 of an EPOCH.

What’s an EPOCH?

To understand exactly what an EPOCH is, you must first know that Takamaka’s algorithm divides physical time into blocks, which are collectively known as EPOCHs. A single EPOCH has a duration of 8 days and 8 hours, and can be divided into SLOTs. Each SLOT has a duration of 30 seconds, within which a block smaller than 10,000 Tx is generated.

EPOCH on Takamaka’s blockchain

To get started with staking, you have to commit your TKGs on one of the Takamaka Network nodes.

Whether you are using the mobile or desktop version, you can select your preferred nodes by clicking on My Wallet, from the menu on the bottom. On the next screen you’ll find a staking icon (top right), from which you can see all the nodes available on the blockchain.

Highlighted in red: the staking icon

After clicking on the staking icon, press the “+” button on the top right to view the list of available network nodes.

Can I commit something I do not have on a node?

In this case you can opt for virtual staking. Let’s take a look at how this process works.

Let’s say you own 10,000 TKGs but would like to bet 100,000 TKGs, which you don’t have. You can still participate in staking though, since Takamaka allows you to “virtually” use coins you don’t own.

The algorithm knows the balance of each address, and therefore knows if a user owns enough funds. But thanks to the Virtual Staking System, instead of preventing the user from completing the operation, the algorithm allows you to earn rewards over time that will be automatically reinvested in the staking process.

Basically, thanks to the Virtual Staking System, if you have 10,000 actual TKGs you can bet up to 100,000 coins. The algorithm knows you don’t actually own that amount of money, therefore it will capitalize the rewards received until it reaches 100,000 TKGs.

If you want to get started with staking on Takamaka, contact us at