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Staking Peercoin and its Return on Investment

2018-12-10 | Peercoin

How to start staking Peercoin?

Staking (minting) Peercoin is very easy and can be done on any computer. It does not depend on the processing power of your computer, but rather on the coins that you hold. Minting Peercoin can be done using the Peercoin QT wallet or Peerunity client. When the software is installed, simply instruct the wallet or client to unlock for minting from the settings and you will be on your way.

What is the return on investment of staking Peercoin?

Peercoin aims for an inflation rate of 1% per year, which is given out to anyone staking. As such, the expected return is roughly 1% per year. This is lower than most proof of stake currencies, but this also means that inflation on the network is lower and the extra coins you acquire should, relatively, hold more value as a result (excluding other factors that determine the value of a coin). The minting process is random, so these rewards will not come at set points in time. Your coin age is used to calculate the height of your reward and to increase the likeliness of getting a reward. Coins will need at least 30 days of coin age before they can be used for minting and the likeliness of getting a reward increases until 90 days of coin age. After those 90 days, any further coin age accumulated only increases the reward. You can use this calculator) to see what kind of reward your can expect when staking.

How to maximise the return of staking Peercoin?

If you stake continuously, you will ensure the highest return through compounding rewards. Theoretically, due to the coin age system you could hold off on staking and lock in your increased reward later. However, the sooner you lock in your reward, the earlier you can also earn a reward on those newly rewarded coins. As such, staking more often is more profitable. Furthermore, this allows you to easily ‘set and forget’ your staking system, which is much easier than constantly remembering to turn it on.

Although staking can be done on any old computer, this is likely not the most cost-effective solution as the expended energy of running the computer will cause a decrease in your returns. Furthermore, the hardware is likely not designed to always be running, which will introduce costs of repair and replacement. We have developed the OmniStaker as an easy-to-use solution that uses very little energy to run. As such, the OmniStaker offers the most cost-effective way of staking your Peercoin and other proof-of-stake crypto currencies.