nPoS - Staking Based on TRUST and Reputation
This guide is intended to demystify trust-based staking and provide clarification on Nexus’ specific centralization safeguards. The significance of this consensus power shift to staking cannot be overemphasized, especially considering the vulnerable state of governance with emerging decentralized ecosystems.
Nexus trust based Proof of Stake (PoS) is a greener form of mining supplying similar consensus properties that Proof of Work (PoW) channels provide with minimal management overhead. The probability of finding a block is largely determined by the amount of coins staked. It is hardware agnostic, instead basing its hashing algorithm off balance and weight. This means there is no set amount of time to earn a reward. It happens when you stake a block, with the chances of doing that increased by staked amount/Stake weight and decreased by current network PoS channel difficulty.
Ultimately, the only thing that matters is that the wallet (node) finds a block once every 72 hours to keep growing stake rate. The reward itself is based on time, so frequency isn't important. If it takes 2 days then the reward is twice as much as if it takes one day. Once you stake a block then that node is locked for 240 blocks (120 min).
In PoW, if network hash rate increases, so does difficulty; similarly for PoS, more total coins staked on network = more difficulty. You can increase PoW hash rate by adding hardware, however hardware makes no difference for PoS. Effective PoS hash rate is increased by stake weight (block and trust weights) and staked amount.
True stake rewards, however, are not like earning interest. Staking rewards are given for running a node to secure blocks via consensus, similar to PoW rewards although generated differently.
Nexus has a total of 78 million native coins and these will be mined fully in 2024 with a tail end emissions / inflation of 3.67%. 3% will be for the PoS if all the nexus tokens are staked and 0.67% for the hash and prime mining channels.
Nexus provides desktop wallets for windows, mac and Linux. The mobile wallet (lite node only) is currently in public beta and will be released in H2 of 2022. As of today, Nexus only supports full-node staking, although the next major upgrade will also include pooled staking, with a minimum balance of 1 NXS.
Nexus staked holdings will also be valuable for voting in the upcoming DAO, where trust will be an crucial factor. Voting will supply weight/age values to trust and amount of staked NXS, providing considerable resistance against manipulation and bad actor influences.. Note: In the previous election conducted for Nexus embassy allocation, the amount of nxs for each vote was capped at 10K nxs + trust weight. This is currently not hard coded, but will be implemented in the upcoming DAO release. The threshold variables can be changed as per the requirement and also can be voted on by the community.
Staking on Nexus is similar to running a full node
Before we proceed further, Please go through the disclaimer first and do not skip this.