Frequenty asked questions

Do you have specific questions about Stakenet? Most common questions are covered below. Please contact [email protected] if your question is not answered.

Last updated: 01 July 2018

What's Stakenet and XSN? What's the difference between the both?
Stakenet is a decentralized blockchain projects ecosystem that allows easy and secure staking of its currency XSN using Trustless Proof of Stake - the highest level of security using decentralized and trustless cold staking. The high-end network services are provided by Stakenet's Masternodes.
Stakenet strives to provide a highly secure interchain economy for cryptocurrencies, invent new applications for XSN TPoS and build blockchain-related services such as: a Decentralized Exchange, Multi wallets/Staking as a Service, Masternodes as a Service, Pooled Masternodes, other Atomic Swap services, et cetera. All of this while also developing further technologies for XSN. The main website of the ecosystem is https://stakenet.io but there are others for different Stakenet related projects.
XSN is the coin that powers Stakenet with amazing capabilities such as Segwit, Lightning Network, Atomic Swaps and other Cross Chain applications such as Cross Chain Proof of Stake.
What's the blockchain?
The blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. It's basically a database of transactions. By design, a blockchain is resistant to modification of its data. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without alteration of all subsequent blocks, which requires the consensus of the network majority.
What are cryptocurrencies and altcoins?
A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Any cryptocurrency other than Bitcoin -the first and leading one- is called altcoin.
Why are there many cryptocurrencies? What's the difference between a coin and a token?
Each cryptocurrency serves a purpose and has different characteristics, although most of them act as a medium of exchange mainly. A crypto coin is a cryptocurrency which operates independently of any other platform, so it has its own dedicated blockchain like Bitcoin (BTC) or Stakenet (XSN). A token is a cryptocurrency that requires another blockchain, such as Ethereum or Neo, to exist and operate. Golem is a token on the Ethereum blockchain (those are called ERC20 tokens) and Ontology is a NEP5 Token on the Neo blockchain.
What's a wallet?
A cryptocurrency wallet is a digital wallet used to store, send, and receive digital currency like Bitcoin (BTC) and Stakenet (XSN). Wallets can be of various types such as Online (web-based) wallet, Mobile Wallet, Desktop wallet, Paper wallet or Hardware wallet. A hardware wallet is a special type of wallet which stores the user's private keys in a secure hardware device. It's the most secure wallet of all. It should be noted that each wallet only allows access to the blockchain, where all coins are stored. So to speak, the wallet is just the medium which stores the private keys and makes it possible to communicate safely with the blockchain to access the coins of a certain address.
What's the private key, public key, and address?
The private key is the "ticket" that allows someone to spend bitcoins, so it's crucial that these are kept secure. They're automatically generated by the each coin's wallet software and can be kept on computer files (usually encrypted within the wallet.dat file), be printed on paper or protected within a hardware decide (hardware wallet). A private key can be generated once by a wallet and it may be able to "unlock" an almost infinite amount of addresses created thereafter - these are called HD wallets. The public key is the unique identifier for your cryptocurrency wallet that is known to the public. The address is another identifier, derived from the public key. The address is the identifier people use to send cryptocurrencies to each other.
What's a UTXO?
Unspent Transaction Output (UTXO) is a list of money received that has not yet been spent. In other words, if you were to total up the UTXO, you would get the user’s available balance. Bitcoin and other cryptocurrencies such as XSN based on its technology use UTXO in their blockchain technology to verify that a person has unspent crypto available for spending, thus preventing double spending and fraud.
What's the difference between Proof of Stake and Proof of Work?
They're both methods used to validate transactions in the blockchain and avoid double spending and fraud. The Proof of Work consensus is done by what we call mining, where the miners have to solve complex mathematical problems over and over again. The more computer power (measured in Hashrate), the more chances you have of solving this mathematical problem and earning a reward from the blockchain. It's a way of proving the blockchain that you are investing energy (electricity, work) in it.
The Proof of Stake consensus is done by minting. In this case, very simple computers can mint (validate transactions) since this is not a very resource demanding task. Instead of using electricity to solve mathematical problems to prove you are invested in the blockchain, you prove it by owning its coins. Everybody can use the Proof of stake system as it only involves bandwidth and online connectivity. You don't need to spend huge amounts of money on computers and waste electricity, all you need is a very cheap server and own some coins.
What's a smart contract?
A Smart Contract is a virtual agreement between different parties, which is managed by the blockchain. Its main role is for two parties to conduct this agreement that can be digitally self-executed and self-enforced, acutely eliminating the need for a ‘middleman’. This would transfer power away from those who currently manage or verify transactions in our current society. A seismic change to the way the world currently operates.
What's staking?
Staking is the act of running a staking node in a Proof of Stake blockchain to protect it. A staking node is a server that runs the coin's wallet with a positive coin balance and automatically receive rewards from the network in the form of coin payments for its services. Rewards are based on the number of coins the wallet owns. The node must always be online or either it won't be staking and receiving rewards.
What's Trustless Staking (TPoS)?
Trustless Proof of Stake is a technology developed by Stakenet that allows users to stake XSN by having a Merchant node (server) do the staking for them while not having to share any spendable balance or private keys with the Merchant node. This is done as a smart contract. Your funds are yours and yours alone, can be safely kept in a hardware wallet and they will grow over time, even while you sleep. You can hire a Merchant node which is provided by independent "Merchants" or run your own one. Having trustless, decentralized nodes with unique IPv4 staking makes XSN the most secure PoS blockchain.
What's the Merchant in TPoS? Who is it?
Merchants are independent people who run Merchant nodes (a kind of Staking nodes) to stake other people's coins via a smart contract. The Merchants earn a small commission from the owner for their services. This is done in a trustless manner, where funds and commissions are always safe and protected with the smart contract in the blockchain.
What's a Masternode?
A Masternode is similar to a staking node, but instead of protecting the network, Masternodes provide its services. A Masternode requires a certain locked coin balance to work. In Stakenet, it's required exactly 15 000 XSN per Masternode.
What are the block rewards?
Block rewards are those new coins (in our case, XSN) created and automatically distributed by the network. In our case, those are distributed to Stakers and Masternodes on each block creation.
What's an ICO? Is XSN an ICO?
ICO stands for Initial Coin offering and is a mean by which funds are raised for a new cryptocurrency venture. Typically during an ICO, coins are presented/sold to initial investors at discounted rates. No, XSN didn't do an ICO.
What's XSN coin used for?
XSN coin is a state of the art cryptocurrency that allows a peer-to-peer method of payment. It will be used for daily transactional activities happening within the XSN coin financial ecosystem, for staking and Masternode purposes, merchant services, and can also be used as a peer to peer exchange and store of value between users securely, and efficiently at reduced costs.
What's the minimum amount of XSN needed in order to stake or run a TPoS?
There is no minimum. However, the rewards are distributed based on the weight on the network of your coins, so if you stake with a low amount of coins you may be waiting a long time to receive a reward. In https://cloud.stakenet.io, there are staking pools where you can join others to stake and receives rewards every few minutes.
How much I need to run a Masternode?
You need exactly 15 000 XSN per Masternode.
How profitable is staking? And running a Masternode?
Stakenet Masternodes will receive 45% of the block rewards for providing network services. Stakers, whether that be from TPoS or regular PoS, will also receive 45% of the block rewards for running their nodes and securing the network. Profitability varies constantly, you can check it on the calculator in the XSN Cloud.
Can I run a Masternode and also stake XSN? How does it work?
Yes, but not with the same coins. In order to learn how to set up a Masternode or stake, please check our tutorials.
What's a fork, a hard-fork, and a soft-fork? Did XSN fork off any other chain?
Forking implies any divergence in Blockchain - temporary or permanent. Very simply, forking is said to happen when a Blockchain splits into two branches. A hard fork is a permanent divergence from the previous version of the Blockchain, and nodes running previous versions will no longer be accepted by the newest version. Some Examples are Ethereum Classic vs Ethereum and Bitcoin Cash vs Bitcoin. A soft fork is said to happen when a change to the software protocol keeps it backward compatible. What this means is that the new forked chain will follow the new rules and will also honor the old rules. The original chain will continue to follow the old rules. Stakenet isn't a fork with other parallel moving blockchains. Stakenet is built on the bitcoin.core Blockchain architecture using a modified Dash and Peercoin codebase.
What problem do Stakenet and XSN solve?
XSN provides a simple to use staking and Masternodes based platform for non-technical users which in past was only possible for highly technical users. Furthermore, it also resolves the problems of privacy and security by introducing Trustless Proof of Stake and introduces new technologies such as Revolving Staking Bonus, Cold Wallet staking, Lightning Network term deposits, and Cross Chain capabilities, like Cross Chain Proof of Stake.
Stakenet is aimed to be a truly, highly secured and profit-driven interchain ecosystem for nearly every cryptocurrency. Therefore Stakenet will enable a meta-network of Cross Chain agreements and contracts. This network will be powered by the Stakenet native coin XSN and managed by the Stakenet Masternodes.
What are the projects of Stakenet?
Stakenet is a Decentralized Autonomous Organization (DAO), so people all around the world can and are building projects within the Stakenet (XSN) blockchain and ecosystem.
The main projects of Stakenet are being built to further benefit XSN owners. By burning its profits (with RSB), donating those to the treasury or granting them directly to the owners. E.g. all the fees of the Stakenet Decentralized Exchange will go towards the Stakenet Masternodes automatically.
Therefore XSN is permissionless, censorship-resistant money running on the most secure PoS blockchain with the latest cutting-edge technologies -such as Segwit, Lightning Network, Atomic Swaps and other Cross Chain capabilities- that also has all of these projects behind, making it gain further value and adoption.
XSN is an inflationary coin, why? How do we counter it?
Yes, it is. It's a requirement for our economy to work in the long term. An inflationary coin is the one that doesn't have a hard limit as to how many coins can be at any given time, or how many new coins can be created. Stakenet despite being an inflationary coin, tackles the issues of the traditional inflationary model through RSB mechanism. RSB “Revolving Stake Bonus” will build and support a network of projects (i.e XSN Cloud) whose proceeds are sent to their respective and assigned burner addresses. The scope of these operations will be limited to properly incentivize projects to perform the ‘Proof of Burn’. The possibilities that arise from this Proof of Burn model are limitless, with the very highest ones being prioritized and pursued on a strategic partnership and adoption level in the early stages. This is made possible due to XSN’s unique economic model via our RSB coupled with treasury and API integration, creating a powerful multi-layer of financial protection and growth for its holders.
Does inflation mean XSN will not increase in price?
No. The coin price depends on the total circulating supply and the market cap. So the more the market cap XSN has, the more will be the value of every circulating coin. It is also important to note that XSN’s monetary policy is based on hard-coded rules and consensus via our Masternodes - any decisions of how inflation is used is left to the ones with large stakes. No group of people, whether elected or otherwise, can unleash a tragedy of the commons.
What separates XSN from all the other coins to make this investment someone’s best option?
Trustless Proof of Stake, Lightning Network support and Cross Chain capabilities, among other things, will gain attention from high net worth individuals to convert their wealth to XSN as they will be able to stake without making their assets “hot” and susceptible to hacks. There will be also the option for users to receive their interest gained in other forms of currency, while their main source of wealth stays safe.
How secure is the XSN network?
Due to Trustless Proof of Stake users can trustless stake while holding their coins safely in a cold wallet, so there are more Staking nodes than ever. This results in a very robust and safe network for XSN.
How is XSN relevant for Stakenet?
The end goal for Stakenet is to utilize the Masternodes network to be the backend and turn XSN into a form of gas which powers the platform via features executed in a decentralized and trustless manner through them. The https://stakenet.io website may be used as a window to use these services. For now, however, we will start providing services like Staking as a Service (Pooling Staking) helping bring our project traffic and getting XSN more exposure until Stakenet have this network fully tested and deployed. Fees in XSN Cloud will be paid in XSN and all of the profits will be used to buy back XSN and burn it.
I'm convinced, how do I buy and store XSN?
To buy XSN, you can use any of the crypto trading exchange where it's listed. Current exchanges that support XSN are Livecoin, Cryptopia, SistemKoin, and Bitbu. For more details, please check our website https://stakenet.io/xsn/buy-xsn
Can I store my coins in Myetherwallet.com?
No. Myetherwallet.com is only for handling Ethereum ERC-20 tokens. XSN is a coin deployed on its own dedicated blockchain.
What's XSN Cloud?
XSN Cloud is one of the projects built within the Stakenet ecosystem to make XSN even more valuable.
In XSN Cloud we feature a Multi Currency wallet, Pooling staking (Staking as a Service), Pooling Masternodes, Masternodes as a Service, a Merchants marketplace, an ROI calculator and Monitoring services.
We collect fees from the users for using these services and grant a 50% discount if they're paid in XSN. This way we encourage XSN adoption.
All of the profits are being either burnt or donated to the Stakenet treasury.
What's the treasury?
The treasury is a cryptographically sealed public address that holds all funds allocated to it by the network. It's used to fund Stakenet further coin developments, new projects, et cetera.
What's RSB?
RSB “Revolving Stake Bonus” is the mechanism that will build and support Stakenet's network of projects whose proceeds are sent to their respective and assigned burner addresses. The scope of these operations will be limited to properly incentivize projects to perform the ‘Proof of Burn’.
What's the maximum supply of XSN?
Since the total block reward will stabilize at 20 XSN per block, supply is theoretically unlimited. This is the case with other coins like Dash and Monero. However, XSN will introduce RSB, which will serve to offset some of/all of the inflationary effect of the block reward. Therefore, it is expected that XSN supply will only increase very slightly with time.
How are the block rewards distributed?

From each block rewards: 45% Masternodes - 45% Staking - 10% Treasury.

PoS blocks rewards breakdown:

PoS Phase 1 fair launch start date: 6 March 2018

PoS Phase 01: [000 000 – 020 000] 00 XSN
PoS Phase 02: [020 001 – 063 200] 50 XSN
PoS Phase 03: [063 201 – 106 400] 45 XSN
PoS Phase 04: [106 401 – 149 600] 40 XSN
PoS Phase 05: [149 601 – 192 800] 35 XSN
PoS Phase 06: [192 801 – 236 000] 30 XSN
PoS Phase 07: [236 001 – 279 200] 25 XSN
PoS Phase 08: [279 201 – infinity] 20 XSN

PoS Phase 8 estimated start date: 20 September 2018

Why stake when there are Masternodes?
Block rewards are the same for both, and while staking you can freely move your XSN. It is true however that Masternodes will have certain benefits: such as voting permissions, will earn the fees from the Stakenet Decentralized Exchange, et cetera...
Is Stakenet supported on Ledger?
Yes, it is. We have a lifetime contract with them so XSN will always be on any of Ledger devices.
What's the staking coin age and why I'm not receiving staking rewards?
The coin age is the amount of time the coins have been "maturing" for staking purposes. In order to be eligible to receive a staking reward, coins must have had to mature. The more they have matured, the more possibilities there is to receive a staking reward for those coins. In XSN, coins start maturing one hour after 20 transaction confirmations and reach its maximum coin age after 24 hours.
How do I run a Masternode?
Please check the Masternode guide here: https://github.com/carlosmmelo/XSN/wiki
What’s the point of being a Merchant? What does a Merchant get out of TPoS?
Its beneficial to the owner because they don't have to leave their computer online 24/7 to stake their coins and can store these in a hardware wallet. It's beneficial for the merchant to have TPoS since they will be earning a commission for the TPoS contract.
Where do I receive my Staking, TPoS or Masternode rewards? What if I have my coins in a hardware wallet like Ledger Nano S?
Staking rewards are paid to the staking wallet. TPoS rewards are paid directly to the owner wallet and merchant (controller wallet) based on the commission contract details. Masternode rewards are paid to the controller wallet. In TPoS, you can keep your coins in your Ledger Nano S and you will receive your TPoS rewards to it.
Can I earn Bitcoin while holding XSN in my Nano Ledger S?
Yes, you will be able to. Bitcoin or any other currency as we definitely see other coins using this feature considering it is a revolutionary technology within the crypto community. However, we will likely not entertain the addition of coins below a certain 'popularity'.
Can I run a Masternode while holding my XSN coins in my Ledger Nano S?
XSN is working towards that. You will be able to run Masternodes while holding XSN in your Leger Nano S.
How long does it take to start receiving rewards from my Masternode?
It takes 2.6*(total active MN count) minutes for your Masternode to start getting rewards since activation.
Can I run more than one Masternode or TPoS on a computer?
We are implementing an IP security protocol, so each Masternode needs a unique static IPv4 address. The same is true for Merchant nodes. This is done to prevent centralization and further strengthen our network. So you can only run as many Masternodes and Merchant nodes as IPv4 addresses you have per computer.
Will other coins begin to use trustless staking (TPoS) as well?
We definitely see other coins using this feature, as it is revolutionary within the crypto community. However, if coins choose to do this they will have to fork off from XSN itself.
How would I claim my stakes if I have a TPoS contract through my ledger?
There would be nothing to claim. If a Merchant is running a Trustless Proof of Stake contract for funds from an address of yours, your address will receive the rewards as they come in and you would have full access to everything.
What's an orphan block?
Orphan blocks are those blocks which are not accepted into the blockchain network due to a time lag in the acceptance of the block in question as compared to the other qualifying block. Orphan blocks are valid and verified blocks but are rejected. They are also called detached blocks as they exist in isolation from the blockchain. Orphan blocks don't cause any harm at all to the blockchain itself.
Say I leave my computer running, and I hit an orphan block. Does the wallet stop staking because of this?
No, it will continue staking.
I've lost a portion of my total balance, yet I see no outgoing transactions. How do I fix this?
If there is a ? mark that stays in the transactions tab, that means its an orphan block, so it simply didn't get accepted. Just right-click on it and select 'abandon transaction' to free the funds set aside that attempted to stake that block.
What's the block size for XSN?
2 MB.
What's the block time for XSN?
Approximately 60 seconds.
How does TPoS work?
Trustless Staking works with something called Triplet based encryption. The basis behind this is that instead of just the private and public keys, we have introduced a third key - the shared key. This allows the owner of XSN to communicate with the Merchant, and have their coins stake on the network without the owner having access to their funds.
Are there more use cases for Trustless Staking (TPoS)?
Absolutely. It also has other tangential uses in the crypto space as well. Considering we have likely only scratched the surface of TPoS capability and use, it is very likely that some pretty special ideas will be generated in the near future. We are already implementing some.
How is TPoS protected from a 51% Merchant Node minting attack?
We purposely made the barrier to become a TPoS Merchant easy. This will ensure competition and enough decentralization amongst TPoS Merchant Nodes to prevent a single Merchant from monopolizing the market. The developer's team also can develop one-click setups for Merchant UI’s if need be to even further ensure decentralization to allow average non-techies to enter the market.
How does the Masternodes run the XSN Decentralized Exchange?
Our Masternodes will hold decentralized hashing tables (DHT’s) which will be the precursor in allowing our network to be also used as a Decentralized Exchange, holding and executing buy and sell orders as a service. All required tech can be done in-house on the XSN chain while accepting XSN as a fee powering these services.
As a Merchant, can I have several TPoS contracts running in various nodes with different IPv4 under the same Merchant address?
No. Every Merchant Node with its unique IPv4 also needs a unique private key. Otherwise, you will get banned. That is, you have to create a different merchant address for every contract and link it to a unique IPv4.
What's XSN Cloud?
XSN Cloud is one of the projects built within the Stakenet ecosystem to make XSN even more valuable.
In XSN Cloud we feature: a Multi Currency wallet, Pooling staking (Staking as a Service), Pooling Masternodes, Masternodes as a Service, a Merchants marketplace, a ROI calculator and Monitoring services. If some of these services are not live yet, rest assured they're being worked on.
We collect fees from the users for using these services.
All of the profits are being either burnt or donated to the Stakenet treasury.
How many confirmations are needed for my deposit to go through?
You XSN coins will be deposited after 20 network confirmations.
What are the fees for the Staking Pools services?
Fees are still being studied, but they will be around 10%.
How long do I have to wait until I start receiving rewards?
Your deposited coins will be eligible to receive rewards from the staking pool 24 hours after the transaction has been confirmed.
What format and timeframe are the dates being displayed in?
Universal timezone and format: YYYY-MM-DD 23:59:59 UTC