Staking NULS - What You Need To Know
Staking NULS – What You Need to Know
NULS is a 3rd generation blockchain that allows developers to “plug and play” an unlimited set of modules that incorporate any combination of chosen functionalities. NULS also allows for multiple coding languages, including Python, C++, and Java. The modular design of NULS is unique among blockchains—allowing developers to build sub-chains and side-chains (Dapps) by adding to existing modules and swapping them around according to their own individual business needs.
Because NULS is modular and versatile, it has one of the fastest transactions speeds in the industry (over 2000tx/sec) and is almost infinitely scalable. This combination of scalability and versatility is paired with an innovative, new approach to security: The “Proof of Credit” consensus mechanism. POC won an award from the Chinese Ministry of Industrial Technology as the Most Outstanding Blockchain Project. NULS is primed to dominate the Chinese blockchain sector after being added to China's Official Blockchain Ranking System, governed by the CCID. (China Electronics and Information Industry Development Research Institute)
Proof of Credit
The POC consensus mechanism punishes bad actors on the network and rewards good actors. POC is similar to Proof of Stake—It allows clients to stake their NULS into a node on the mainchain and earn rewards for completing blocks. Each node is operated by an Agent administrator to keep it secure and updated. The specifications for running NULS node are:
8 Core CPU
Every node requires a deposit of 20k NULS to be listed on the NULS mainnet. Once a node is listed, anyone can stake in it, however it will not become active and begin earning rewards until there are at least 200k NULS staked.
Once the node goes active, it starts earning client rewards for the stakers and agent rewards for the operator of the node. The node can hold a maximum of 500k NULS, but if at any time it goes below 200K staked NULS, it will go inactive and stop earning rewards until 200k is reached again. Unlike most Proof of Stake consensus mechanisms, POC allows clients to unstake at any time. If an agent decides to delist their node, the 20k Agent deposit will remain locked for 72 hours while client stakes can be moved immediately to another node.
POC system works by cycling randomly through the nodes, one at a time, to complete blocks and distribute rewards. Once every node in consensus completes a block, the cycle repeats. If an agent node misses a block, it is penalized with a yellow card. Multiple missed blocks will earn consecutive yellow cards.
The card system incentivizes node operators to maintain a secure, superior server and helps keep the network stable. When a node receives a yellow card, its credit rating is downgraded. A credit rating of 1 is 100%. A credit rating of .98 means that the node is only receiving 98% of the block reward until it returns to 100% (around 12 hours). At present, there are 78 active nodes operating on the NULS mainnet. It takes around 35 minutes for all of the nodes to complete a block in turn, before the cycle starts again. Once a node accumulates 100 yellow cards, it earns a red card...
When a red card is issued, the node is pulled from consensus and its agent deposit is frozen for 90 days. This prevents bad players from attacking the network and punishes nodes for their participation in an attack. Nodes that do not have their servers maintained and upgraded properly are at risk of multiple yellow cards.
Once 100 yellow cards accumulate, a red card follows. NULS staked by clients in a red-carded node are released back to the stakers immediately, but the agent's deposit remains frozen. This further helps to safeguard the network from spam attackers, 51/50 attacks including double-spending, and unstable servers.
Staking and Rewards
Nuls has an official block explorer https://nuls.world/ which includes a calculator to find out how many rewards clients will earn each day, according to the amount of NULS you have staked.
To earn rewards as a staker, you’ll need a minimum of 2k NULS in your wallet. Now is the perfect time to accumulate before NULS climbs to the top of CCID ratings in September with release of smart contracts. https://www.nasdaq.com/press-release/chinas-official-crypto-ranking-introduces-two-new-contenders-20180810-00506
Choosing a Node
Most nodes offer 10% of agent commissions paid out to participating stakers. Currently, the highest paid commission offered is 30% at: https://nulswest.com/#/
Other factors to consider when choosing a node for maximum rewards:
• Nodes with Credit rating of 1 earn the highest rewards.
• Nodes with more participants are less likely to fall below the 200k threshold and have less chance of going inactive.
• Nodes that exceed system requirements for operation have less chance of server connection issues.
• Node owners who are active in the community can assist clients staked in their nodes by answering questions and offering support.
• Nodes that contribute to and fund community projects are the most likely to be around for the long term.