BFX Coin

POS

What is Proof-of-Stake ?

PoS happens by a miner putting up a stake, or locking up an amount of their coins, to verify a block of transactions. The cryptographic calculations in PoS are much simpler for computers to solve: you only need to prove you own a certain percentage of all coins available in a given currency. For example, if you somehow owned 5% of all BFX, you’d be able to mine 5% of all transactions across BFX Blockchain.

How Do you Stake Coins PoS in BFX ?

Download a Windows, Mac or Linux Wallet from our website.

Fully sync your Wallet to the BFX Network by running your wallet and downloading the blockchain. (Automatic as soon as wallet is opened)

Buy some BFX from the Exchanges.

Withdraw BFX from the Exchanges to your Wallet.

Leave the coins in the wallet for 7 days. After 7 days the coins become eligible for Staking.

The wallet must be Unencrypted for it to allow Staking. (Found under Settings in the main Tool Bar. At Default BFX Wallet is Unencrypted).

What is meant by the Terms Weight in PoS ?

The Weight of the Network is a figure given to the All the coins that are actively Staking on the entire BFX Network. The Coins in your Wallet that are available for Staking also has a Weight. If the Weight of the Network is 8000 and the Weight of your Coins is 2000 then you have a good chance of Minting some new coins. However if the Weight of your Coins is just 1 then the chance of you Minting some new coins are remote. The Weight of the Coin is simply based on Coin Age. As a coin gets older as does the weight and your chance of Minting coins increases.

Does my Wallet have to be open 24/7 to Receive my Stakes ?

It is true that to mine any coins your wallet must be open. If your wallet is closed it cannot be part of the lottery. However the PoS rewards do NOT take into account the length of time a wallet is open. If you open your wallet for a few hours once a month you will receive roughly the same amount of coins as someone who is staking 24/7. The 24/7 Wallet will receive many more smaller amounts and the wallet open infrequently will receive less but larger amounts. The total will roughly be the same. The issue with doing this is that when a wallet is not open for a long period of time, then is opened again, the amount of potential Staking weight created by that wallet will be very high while the rewards catch up to meet the 365 day inflation calculation. The ideal situation is to leave the wallet open 24/7 so it provides a steady amount of PoS mining power on the network and acts as a node for gaining consensus.

Are my newly staked coins automatically put back into the pot again for Staking ?

Any new coins and the coins used to mint them are NOT eligible for Staking again until the coins have received 100 confirmations.

If I have 500 BFX, How many Coins can I expect to Make per Year ?

The inflation rate for BFX is set at 12% Annually which is 1 Year. The Reward is simply calculated as 12% of 500. Over the course of the year you can expect to create (500 / 100) * 12 = 60. So if you start the year with 500 BFX at the end of 1 year you can expect to have around 560 BFX.