The DogeCash network is supported thanks to stakers and masternodes (Dogenodes in the DogeCash network). Stakers validate transactions, and masternodes function as a host for the blockchain. Both are rewarded by the network with DOGEC.
What is Staking?
In conventional networks based on proof of work such as Bitcoin or Litecoin, miners are responsible for collecting and validating transactions in an accounting sheet (block), which, once is completed, must be linked in the chain of blocks already validated (blockchain). The miner who performs this action will be rewarded by the network.
In a POS network as DogeCash, the operation is the same, except there isn’t a mathematical challenge, and therefore, the energy waste is eliminated. Instead, a draw is made between the different stakers to determine who will be chosen to append the block to the blockchain. Each staker must have at least the minimum amount required deposited as insurance, and the greater the amount lodged, the greater the probability to be chosen.
How can I stake DogeCash?
As you are actually validating transactions, you need to have a wallet open and connected to the network with your coins in it. And you can achieve it in two ways: Through Hot Staking (using your own wallet and device) and Cold Staking (by delegating your coins to someone else, so you don’t need to keep your device always on)
How to use Hot Staking?
You need to have a wallet with coins (if you don’t have one, go get it here). Once you have it, follow these steps:
- Unlock wallet for staking
2. Check the gift box icon on the top right of your wallet is enabled (The wallet needs to be fully synced).
Remember that you need to have your wallet always open to receive rewards. The first reward might take a few hours/days to arrive, and after that, you’ll receive rewards more frequently according to your balance. At the moment of this post, this table might work as a reference:
|100 DOGEC||You’ll get a reward (1.08 DOGEC) every ~28 days|
|1000 DOGEC||You’ll get a reward (1.08 DOGEC) every ~2 days|
|2500 DOGEC||You’ll get a reward (1.08 DOGEC) every ~1.5 days|
|5000 DOGEC||You’ll get 2 rewards (1.08 DOGEC each) every day|
|10,000 DOGEC||You’ll get a reward (1.08 DOGEC) every 2-3 hours.|
How to use Cold Staking?
As I mentioned, cold staking consists of delegating your coins to someone else, so you don’t need to keep your wallet always open to receive rewards. To do it, follow these steps:
- Enable cold staking
2. In the left menu, a new tab, “Cold staking,” will appear. Go and then go to “Delegation.”
3. Fill the fields. You can use this staking address provided by the team
4. Now, you can see your delegations in the “staker” tab
How to spend delegated coins?
Easy. You need to go to “Send” and check the “Include delegated” option.