The long-term value of blockchain platform with internal cryptocurrency can only be achieved with increasing of coins utility. One of best solutions for such aims is Staking. Staking is a method that provides incentives for participation in decision making mechanism, especially when node is chosen as “trusted” or “recording”. Staking will encourage users to perform valid actions and receive rewards, presented in the form of commissions.
Staking, in terms of Credits protocol, means setting the minimum amount of coins, required for a node to participate in consensus mechanism and get rewards. Users will need to store Credits internal currency (CS) on their wallets. The amount of stake won’t affect the frequency of node participation in a round. Rewards are formed on the base of fees, collected in the result of the following operations:
- Payment for the transfer of Credits (CS) cryptocurrency between the platform participants;
- Payment for the deploy and execute of smart contract;
- Fee for the transfer of tokens created on the Credits platform;
- Purchase of information from third-party sources for services within the system.
Running node for other purposes such as sending transactions, deploying smart contracts through Desktop Wallet and connecting of dapp with Credits network will be free.
Advantages of Staking
Except the increasing of Credits (CS) coin value the implementation of Staking has good impact on the whole platform security. Staking diminishes the threat of a 51% attack, as it is resource intensive way to take a control over the most nodes of total. Moreover, staking prevents the threat of forks as the common amount of valid chain stake will exceed the amount of fork chain stake, which automatically excludes the fork from the network.
Conclusion
Staking will be implemented on Credits platform by means of storing 50 000 CS coins on the wallet. Subsequently, the amount of stake, equivalent to fiat, will be decreased. However, developers who are willing to use Desktop Wallet for sending transaction, deploying smart contract or for connection of Credits network their decentralized application will be able to run node for free.
