This article explains how to earn free coins by staking PIVX and taking advantage of their reward system.
What is this mythical PIVX coin you speak of?
The name of this cryptocurrency is a cheeky abbreviation of it's features: Private Instant Verified Transaction (X). It is a transactional security and privacy-focused decentralized open source cryptocurrency.
PIVX believes that users have the right to exchange data privately & securely, without any pressure or interference from governments, eavesdropping spies or malicious individuals. They want to make sure their users have a platform where they can exchange their assets freely and be confident that their transactions are being executed timely and securely.
With such a strong ethical core, enforced by an amazing team, I believe this is a really great project.
But didn't I hear all of this before elsewhere?
Yeah, you did - from DASH, and no wonder too - PIVX was created as a fork from the DASH v0.12.0.x core and is now it's competitor. Both cryptos are solving the same problem, but there are significant differences between the two such as differences in development ideology and voting governance, but most importantly - their offer of Proof-of-Stake mining.
Proof of Steak?
Proof-of-Stake is the kind of dish you hear gourmet miners talk about all the time.
In a nutshell, it means mining with coins in your possession. If you have PIVX coins lying around getting dusty and you are not looking to shift them around, you can lock them in your wallet and set them up for staking - similar to putting your money into a savings account.
By doing so you are contributing to the network's security: You are balancing out the influence of masternodes and stakers as you become a node in the network yourself.
How can you not love this gif?
The Reward System
Barbecue time.
First things, first - you need to get some of those sweet PIVX coins. No coins, no steaks.
Then we can talk about 2 options:
1. Running a Masternode
It can get a bit technical to set this one up. Oh, and also you need 10,000 PIV. At the current rate (3.06$/PIV) that amounts to 30,600USD.....ok, maybe later yeah?
2. Stake Your PIV
To keep it simple: PIVX uses an algorithm (called see-saw) that incentivizes balance between masternodes and stakes, it works in such a manner that when there are too many masternodes the block rewards are shifted in favor of staking and vice-versa. This is how you get your coin rewards.
Setting it up
It's surprisingly easy.
- Download the PIVX wallet client.
- Encrypt the wallet.
- Backup your keys.
- Transfer your PIV coins to the wallet.
- Wait until you have received the coins and 101 confirmations from the network.
- Go to settings, unlock your wallet and enable "for anonymization and staking only" option.
That's it - you've successfully set up staking!
Takes about 10 minutes to set up your wallet, and 30 minutes or up to a few hours to get all the confirmations in. Don't worry if you don't see anything happen at first, just be patient.
Here are the official resources that go into a bit more detail:
https://pivx.org/knowledge-base/wallet-setup-guide/
https://pivx.org/knowledge-base/staking-setup-guide/
How much PIV should I expect to make?
It's hard to name a precise number, because the reward algorithm has so much randomness built into it. A rule of thumb is that for every 1,000 PIV you can expect a reward once every 30 days, and overall yearly returns of about 5%. You can read more about the algorithm here.
PIVX also has a tool which you can use to calculate masternode and staking rewards based on your balance. (link to staking calculator)
Some numbers from this tool:
Balance: 10,000PIVX, Average Waiting Time: 1.91 days, Monthly Revenue: 21.26 PIVX
Balance: 5,000PIVX, Average Waiting Time: 3.81 days, Monthly Revenue: 10.63 PIVX
Balance: 1,000PIVX, Average Waiting Time: 19.05 days, Monthly Revenue: 2.13 PIVX
Conclusion
As the above calculation shows, if you own 1,000 PIVX or more it is surely worth staking your coins and letting them grow. Setting up staking is very easy, and does not require any technical knowledge. Unlike proof-of work, it consumes only a tiny amount of CPU power and a little bit of your network bandwidth. So why not take advantage of it and contribute to the coin network?
If you are really enthusiastic about the PIVX project (and you should be!) then you might even consider setting up a masternode.
I hope you learned a bit more about this exciting project from my article and found the guide helpful.
Image sources:
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Information sources:
https://pivx.org/reward-system
https://pivx.org/what-is-pivx
https://pivx.org/knowledge-base/staking-setup-guide
https://pivx.org/knowledge-base/wallet-setup-guide
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