Overview of Staking Program for Token Holders
If you are a holder of the VideoCoin (VID) token, you have the opportunity to participate in the VideoCoin Network’s rewards program.
Participation in the Rewards program means that you elect to lock (“stake”/”delegate” in industry terms) some of your tokens to a worker in the Network in order to show your support for their work and to participate in the payments the worker receives for doing work on the Network (which for VideoCoin Network means processing, storing, or delivering video services). The worker benefits from your staking because your support increases their reputation and makes it more likely that they will receive work to do.
You have two options to participate on the network; 1) as a worker or 2) as a delegator
Each VID token holder interested in staking first has to decide which worker (or workers) to support. A list of workers will be published and updated in real-time. This list will show worker reputation and commissions the worker is paying out to delegators. Each token holder can use this list to select a worker.
Once you have decided on a worker to support, you find a worker’s public delegating address through the studio interface. Use the VideoCoin Delegating Tool to finish the delegating process, locking up your tokens and committing your tokens to a worker.
From then on, whenever the worker does work on the VideoCoin Network, that worker will be paid. And be paid in fiat ($) and VID tokens (in a mix they specify). Then, a full 20% of what the worker is paid is passed along to the delegators (You) to share in. Every time they are paid for successful work. If multiple delegators are involved, rewards will be shared out proportionally to the number of tokens delegated to the project.
Fiat rewards are automatically paid on a third-party blockchain. VideoCoin token rewards are automatically paid on the VideoCoin blockchain.
That’s pretty much the basic way the Rewards program works. Not too complicated in general. Of course, there are details that are still being worked out as we head toward release, including what happens when a worker does not perform well — there will be penalties the Network will impose to make sure workers deliver on their commitments, and stakers will take on that risk as well — that’s why it’s important to stake those workers you believe to be reputable and worthy of your support. More on this will be detailed closer to commercial launch following Everest.
