Some blockchain protocols allow participants to earn additional rewards for their contributions to the blockchain network. Staking is one of them. You can understand Staking as a type of mining that involves fewer resources, allowing more participants to simply get rewards by locking up their cryptocurrencies.
CPChain Staking allows you to get rewards in a very simple way: all you have to do is to deposit CPC in the Staking DApp to earn CPC rewards.
How does staking work?
CPChain's consensus protocol is DPoR. Random elections are performed by calculating the RPT value. The higher the RPT value, the higher the probability of being selected as a block candidate. Consensus elects nodes for block packaging based on RPT. After the nodes produce blocks, they will receive CPC rewards. In the calculation of RPT value, Balance occupies 50%, please refer to Overview — CPChain Docs Mainnet 0.5.2 documentation. Therefore, CPChain investors can pledge their CPC through the staking contract. After miners dig the CPC, they can distribute rewards based on the proportion of Balance.
What are the eligibility requirements for rewards?
- You must have a CPC wallet address
- You must have the minimum balance needed for Mainnet CPCs. You can purchase them on Kucoin or Bibox
- You must hold the Mainnet CPCs on CPC-Wallet (rewards are only available on CPC-Wallet).
How to deposit and withdraw ？
Staking supports participants to deposit and withdraw assets at any time. When there is a demand for withdrawal, the smart contract automatically selects the miner with the largest balance that meets the condition to send the event, and the assets to be withdrawn will be frozen from the main account into the Pending account.
In rare circumstances, withdrawals may be delayed while we wait for staked funds to be unlocked. When this happens, any limits or delays will be communicated clearly in the app.
At the same time, you will be able to initiate an appeal. The assets in Pending will be transferred to the appeal account. The owner will actively call the appeal processing method ‘refundByAdmin’ to process each appeal and return CPCs.
How are Staking rewards calculated?
the calculation methods of different blockchains will be different and affected by different factors. But here, CPC staking rewards are determined as a fixed percentage and based on the amount of CPCs you hold in CPC-Wallet. The interest statistics function will calculate the proportion of each account balance (including principal and interest) for reward distribution. Using this model, validators can more accurately calculate the bet rewards they expect to receive.
In general, rewards are calculated based on applicable assets. The more CPC you invest, the more potential rewards you get.