What is coin staking?

Coin Staking is when Crypto Currency is placed into a wallet to be used as part of a distributed consensus. Wallets must be left open and running in order to participate in the staking process. Coins must first Mature within the wallet once deposited. For WSX this takes 8 hours. Then simply leave the wallet open and running and you’ll occasionally be awarded stake rewards. Once a reward is received your staked coins automatically split into two UTXOs and require another 8 hours to mature again before being able to stake again.

Do I get more stake rewards if all my coins are in one UTXO or does it matter if it is split up? Practically speaking, it won’t make much of a difference in how much stake rewards you receive in the long run. Having all your coins in one UTXO will yield faster rewards, however, you’ll need to wait 8 hours receiving no rewards for those coins to mature after receiving a stake reward. If you instead had split it up, you’d be more likely to always have some coins matured and staking. The staking weight determines how many coins you receive in reward and is based on maturity time and number of coins.

What is a UTXO?

An Unspent Transaction Output. It is the technical term used for the current spendable balance of a network wallet address. In other words, the coins you own on the network.

Why is WSX only proof of stake and not also proof of work?

Proof of work algorithms are more vulnerable to network attacks, especially when a project has a lower hash power dedicated to it. Additionally, proof of stake is more environmentally friendly by using orders of magnitude less electrical power to perform integral network consensus operations.

Will WSX add Masternodes?

Yes! Our team will be completing a coin burn first that could eliminate as many as 8 million WSX from the network. These coins have been ineffective for over a year and are likely to be inaccessible or forgotten. We are giving our community a chance to show activity on their addresses before conducting the burn. Once the burn is complete we will have an accurate count of active circulation of WSX and can carefully set the Masternode requirements and rewards to be economically sound.

How many WSX do I need for a Masternode?

This can’t be finalized until after the coin burn coming towards the end of 2018. The team estimates somewhere between 20–30k WSX will be required, but this can change depending on the number of WSX burned.