Supernode and VSYS Coins work together for minting
Under the Supernode Proof of Stake (SPoS) consensus algorithm (which we’ve covered in previous articles), the V SYSTEMS public chain, supernode, and VSYS Coin holder are in a tightly knitted relationship. Every party plays an important role in the minting process that generates VSYS Coins.
Despite all the complicated technology and privacy layers, let’s break it down into a simple concept. The stake (VSYS Coin) owned by coin holder is the core of the system. Coin holders lease their coins to supernodes, where supernodes will use them as stakes for validation and thus generate blocks. V SYSTEMS public chain will deliver rewards to supernodes, and supernodes will then distribute the rewards to VSYS coin holders.
(You can check out our previous coverage on coin leasing and minting reward calculation which will give you much more detailed information regarding supernode minting.)
vsysrate.com brings you everything you need to know about supernodes
vsysrate.com is the official website for you to get all the details about our supernodes at V SYSTEMS. Working as a marketplace, there are three main pages that help you navigate through the SPoS minting design. Here’s a simple breakdown:
1. Supernodes & Candidates
The supernode listing page displays all the current-operating supernodes, along with their fee, estimated annual ROI, node address, capacity, interest cycle, efficiency, country/area etc. The first 15 supernodes are current-operating supernodes, while any supernodes after that are supernode contenders/candidates that have applied for supernode contention.
2. Rewards Calculator
This page helps users quickly calculate the potential reward earned through leasing coins to specific supernode. Users can also compare the rewards between different supernodes on this page.
3. Supernode Applicant
To apply for becoming a supernode, interested party can fill in the relevant information in the dedicated application form. Once the information is evaluated and approved, the supernode contender will be displayed on the supernode list page. Coin holders can support the supernode contender through leasing their coins. Once the amount of coins received by the supernode contender exceeds the current supernode with the least stake, and supernode contender’s server is ready, the supernode contender can then replace the least-stake supernode.
Criteria to select a supernode for coin leasing
There are many criteria that you could consider when choosing which supernode to lease your coins to. Here are some of the common considerations:
Fee is similar to the transaction fee in a mining pool ecosystem. The lower it is, the less you are wasting away your VSYS Coins as transaction fees.
Capacity refers to the maximum and current amount of leasing. A higher capacity may indicate a more diluted reward, but an exceedingly low capacity may indicate a risk of being replaced as a supernode.
Interest cycle refers to how often the minting reward is distributed to coin holders. There is no better or worse interest cycle in the sense that it solely depends on the coin holder’s preference.
Efficiency is the capability of the supernode in generating blocks. A higher efficiency means that the supernode is producing blocks in a more efficient way, thus tends to be able to generate more minting rewards.
Country/Area refers to the geolocation of the supernode. Some coin holders might prefer certain jurisdiction over the others. It is just a credibility reference for coin holders, the location of the supernode has, in general, a minimal effect on the efficiency or amount of minting rewards.
There is no “perfect” supernode as every individual values the criteria differently. Some may see the country as a decisive criterion, while others may pick a supernode solely because of the high efficiency.
It is advised to study the information of the supernodes on vsysrate.com before selecting the one that you prefer to perform coin leasing on. After the research and evaluation, you can then move on to the actual leasing process on your wallet and start earning the minting reward soon after. Visit our previous blog post for the guide to coin leasing.