Velas Masternode Staking Program Is Now Live

We’re pleased to announce that Velas masternode staking has now commenced. This is a crucial step in the development of our AI-powered blockchain, and one that we can’t do on our own. This is where we turn things over to our community, who have an opportunity to participate in the validation process, and to be rewarded accordingly. The following post runs through how to participate in masternode staking, and the criteria required to apply. Don’t worry if you lack sufficient VLX at this stage to run your own masternode, for as you’re about to discover, we’ve engineered a solution to that.

What is a masternode?

Masternodes are validators that operate on the Velas network as block producers. Each node has the opportunity to confirm new blocks as they are added to the chain, and to verify the transactions contained therein. In exchange for doing so, masternodes are awarded a portion of the transaction fees generated on the network. To incentivize masternodes to operate ethically, and deter malicious behavior, each node operator must put up a stake. This comprises 1 million VLX tokens, which are locked in a special wallet for the duration of their tenure.

Entrusting the verification of transactions and the production of new blocks is a crucial step in the network’s development, as it decentralized the Velas chain, assigning its stewardship to the community for the first time. This will result in a truly distributed chain that cannot be controlled by any single actor.

What happens if I can’t meet the minimum staking threshold?

For VLX holders who cannot muster 1 million tokens with which to qualify for operating a masternode, there is still a chance to participate. Thanks to a partnership with CoinPayments, users can participate in pooled staking, and be rewarded according to the size of their stake. If you would like to partake in pooled staking, simply create an account with CoinPayments, deposit your VLX into a staking pool and your staking rewards will be automatically credited to your account.

How do I set up a Velas masternode?

We want masternode staking to be available to as many community members as possible, rather than simply the preserve of a handful of technically accomplished token-holders. To achieve this, we’ve devised a process that is straightforward and which can be completed in a matter of minutes. Simply head to https://wallet.velas.com/ and select “Create wallet.” Then select “Receive” and send 1 million VLX to your wallet address, plus a small fraction of VLX that is requested to cover staking fees. Then follow the instructions for downloading the Velas node software and backing up your public and private keys. Full instructions on node installation and setup can be found here.

Velas staking wallets are available for Windows, Mac, and Linux operating systems, and upon establishing your masternode, you will be eligible to start earning staking rewards within approximately four hours. The determination of rewards assigned to masternodes is ultimately the role of the artificial intuition algorithm that controls the Velas blockchain. Initially, we have targeted a return of approximately 8% of the staked VLX. This presents an opportunity to earn a passive income while doing your part to support the growth of the Velas ecosystem.

We invite interested participants to stake their claim now, and take the first step towards decentralizing and securing the Velas network.