Frequenty asked questions

Stakenet is a decentralized platform running on its own blockchain with smart contracts. It allows easy and secure staking of its currency XSN using our invention Trustless Proof of Stake (TPoS), achieving decentralized cold staking which provides the highest level of security among PoS blockchains. Stakenet also has Masternodes, which provide high-end network services - e.g. they will be running the Stakenet dx performing Lightning Network Cross-Chain Atomic Swaps.

Stakenet will be connected to other blockchains, such as Bitcoin, and strives to provide a highly secure interchain economy for cryptocurrencies where you can operate with any just by holding XSN. We're also working on new applications for TPoS as well as building blockchain-related services such as the mentioned Stakenet dx or XSN Cloud, among others. All of this while also developing further technologies and products for XSN, like our multi-currency wallet XSN Wallet or the XSN Hardware Wallet.

XSN is the money that powers the Stakenet network, its gas. XSN uses the latest technologies and advancements in the industry such as Trustless Proof of Stake (TPoS), Masternodes, Lightning Network, Lightning Swaps and other Cross-Chain applications like Cross-Chain Proof of Stake.

The blockchain is a continuously growing list of records, stored in what are 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. 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.

While it doesn't seem like a big deal at first, it's actually one of the biggest revolutions in the last decades as technologies like Smart Contracts are possible because of it. Stakenet is here to push its boundaries.

A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange - it's money. It uses a blockchain 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 an altcoin.

Each cryptocurrency serves a purpose and has different characteristics, although most of them act mainly as a medium of exchange.

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 token on the Neo blockchain (those are called NEP5 tokens).

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 wallet (web-based), 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..

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 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 within that wallet - 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..

A 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 of someone, you would get that person's available balance.

Bitcoin, and other cryptocurrencies such as XSN, use UTXO in their blockchain technology to verify that a person has unspent crypto available for spending.

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 earn 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 or forging. In this case, very simple computers can mint or forge (validate transactions) since this is not a very 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. The advantages is that everybody can mint in Proof of Stake systems as it only requires a very cheap computer, online connectivity and owning some coins of the blockchain you're minting. You don't need to spend huge amounts of money on specialized computers (ASICs) to mine and waste electricity like in Proof of Work.

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, entirely changing the way the world currently operates.

Staking is the act of holding PoS coins in a staking node to mint (or forge) new blocks. Minting (or forging) is the act of creating new blocks in a Proof of Stake blockchain to have a chance to receive a block reward.

A staking node is a computer that runs the coin's wallet with a positive coin balance. The wallet will automatically stake, taking some computer power to protect the blockchain. For its services, the blockchain will automatically send rewards to this wallet in the form of coin payments. Rewards are based on the number of coins the wallet owns, the more coins the more chances there are to receive a reward. The node must always be online or either it won't be staking, therefore not receiving rewards.

Trustless Proof of Stake is a technology developed by Stakenet that allows users to trustless stake XSN by having a Merchantnode (server) do the staking for them while not having to share any spendable balance or private keys with the Merchantnode. This is done with a smart contract.

With TPoS, you can safely keep your coins anywhere, like in a hardware wallet, and they will be staking and growing over time, even while you sleep. Not having the coins exposed in the staking server is a huge step forward in terms of privacy and security.

You can hire a Merchantnode to stake your coins, they are provided by independent "Merchants". You can find them in XSN Cloud or in our social channels, like in our Discord. Alternatively, you can also run your own Merchantnode for yourself. Having trustless, decentralized staking nodes with unique IPv4 addresses makes XSN the most secure PoS blockchain.

Merchants are independent people who run Merchantnodes (a kind of Staking nodes) to stake other people's coins via a smart contract.

The Merchants earn a small commission from the coins 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.

A Masternode is similar to a staking node, but instead of protecting the network, they provide its services. They form a huge network of interconnected computers that are used in benefit of the blockchain.

Each Masternode requires a certain collateral (locked coins) balance to work. In Stakenet, it's required exactly 15 000 XSN per Masternode. In our case, our Masternodes will hold other blockchains and run the Stakenet dx, among many other things.

Block rewards are those new coins (in our case, XSN) created and automatically distributed by the network to users as rewards for its services.

In Stakenet, rewards are distributed to Stakers and Masternodes on each block creation. In Bitcoin, miners get the block rewards.

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.

XSN is a state of the art cryptocurrency that allows a peer-to-peer method of payment. It's money with great properties: decentralized, permissionless, trustless, censorship-resistant, immutable, stateless, borderless, divisible, programmable, interoperable, durable, portable, fungible and scarce.

It's a medium of exchange that will be used for real world transactions on a global scale and in the daily transactional activities happening within the Stakenet financial ecosystem. Thanks to XSN Cross-Chain capabilities you will be able to pay any merchant that accepts BTC or any other LN compatible coin - this feature improves adoption on a massive scale. It can also generate you a passive income in the form of XSN rewards paid directly by the network if you are helping it either by Staking or running a Masternode - the latests will also earn the fees coming from the Stakenet dx built upon Lightning Network Cross-Chain Atomic Swaps. XSN is also used to vote in the Stakenet network as only Masternodes can cast a vote.

XSN is then the foundation of Stakenet as everything runs on top of it: Stakenet dx, privacy features, Lightning Network Cross-Chain applications, DApps, et cetera... All of the fees generated in the ecosystem are either directly paid in XSN or if paid in other currencies the network will be able to Lightning Swap them to XSN and feed it back to Masternode holders as additional rewards for their services.

You can learn more about XSN in our comparison chart (XSN Comparison chart) and in our dedicated XSN page https://stakenet.io/xsn

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 receive rewards every few minutes no matter the amount of coins you hold. Keep in mind this is a centralized solution and you lose ownership of your coins. It's only recommended for those who can't afford to spend a few dollars a month ($2 to $5)to rent their own server and run TPoS.

You need exactly 15 000 XSN per 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.

Yes, but not with the same coins. XSN used to run a Masternode can't stake. In order to learn how to set up a Masternode or stake, please check our tutorials under https://stakenet.io/tutorials/

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 vs Ethereum Classic and Bitcoin vs Bitcoin Cash.

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.

XSN fights the legacy system back. You can own your money now and not depend on governments or banks. It's decentralized, permissionless, trustless, censorship-resistant and immutable money. But it also has more use cases other than being a global medium of exchange with instant transactions and infinite tx/s over Lightning Network.

XSN provides a simple to use staking and Masternodes based platform for non-technical users which in past was only possible for highly technical ones. Furthermore, it also resolves the problems of privacy and security by introducing Trustless Proof of Stake (TPoS) and introduces new technologies such as Revolving Staking Bonus, Cold staking, Lightning Network term deposits and Cross-Chain capabilities, like Lightning Cross-Chain Atomic Swaps or Cross-Chain Proof of Stake (CCPoS). You are able to keep your own money in a safe hardware wallet while it stakes (therefore protecting the network) and receiving rewards in any supported currency, like Bitcoin, directly to your hardware wallet. With no intermediaries or third party risks involved whatsoever.

Stakenet is aimed to be a 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. Our objective is to make XSN the only coin you need to own and be the most secure one by having a trustless operating environment.

Stakenet is a Decentralized Autonomous Organization, so people all around the world can and are building businesses within the Stakenet (XSN) blockchain and ecosystem.

The projects built on top of Stakenet directly benefit XSN owners via RSB (read more about RSB on this FAQ), as XSN collected can be donated to the treasury for further developments, burned, or are granted directly to the owners. E.g. all the fees from the Stakenet dx will go towards the XSN Masternode owners automatically in a trustless manner.

Therefore XSN is decentralized, permissionless, trustless, censorship-resistant and fungible money with immutable transactions, running on the most secure PoS blockchain with the latest cutting-edge technologies -such as Segwit, Lightning Network, Lightning Swaps and other Cross-Chain capabilities- that also has projects behind, making it gain further value and adoption.

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. XSN, despite being an inflationary coin, tackles the issues of the traditional inflationary model through the RSB mechanism.

RSB, or “Revolving Stake Bonus”, is a reward mechanism designed to dynamically support the Stakenet ecosystem that will support a network of projects (i.e XSN Cloud) whose proceeds are donated to the treasury for further developments or burned via a Proof of Burn mechanism.

The possibilities that arise from this 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.

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 inflation is low and its 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.

Trustless Proof of Stake (TPoS), 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 rewards gained in other forms of currency, while their main source of wealth stays safe.

XSN holders can benefit from a passive income in the form of XSN rewards as Masternodes will earn the Stakenet dx fees and block rewards directly from the network. For more in-depth explanations, please read our Executive Summary.

Due to Trustless Proof of Stake (TPoS) users can trustless stake while holding their coins safely in a cold wallet, so there are more Staking nodes than ever before. This results in a very robust and safe network for XSN. It's one of the most secure blockchains in the industry.

Stakenet utilizes its Masternode network as the backend of the ecosystem. It needs a currency to function, so XSN is the money that powers this ecosystem via features executed in a decentralized and trustless manner through these Masternodes.

You can read more about XSN at https://stakenet.io/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 and Sistemkoin. For more details, please check our website https://stakenet.io/xsn/buy-xsn

To store XSN you can use the official wallet, downloadable at https://github.com/X9Developers/XSN/releases or use one of the supported hardware wallets, such as Ledger Nano S.

No. Myetherwallet.com is only for handling Ethereum ERC-20 tokens. XSN is a coin deployed on its own dedicated blockchain.

The treasury is a cryptographically sealed public address that holds funds allocated to it by the network. In Stakenet, 10% of the block rewards go into it. It's used to fund Stakenet further coin developments, new projects, et cetera.

There is also a long term development fund distributed between several addresses for larger projects, partnerships, competitions, long term marketing, key developments. These addresses are:

XsXUrym97kYmgYS6dZinKy9aPBJtKjsW9s
XgHb8RcxKEVpLpGCGSfr7PBhaeyXESPohD
XdohZJJNjt58Q8bVYKniE9JqNmj5ZfviEK
XvTtMhf4BTamY1rYTYmpUABMpe3AhdzcAW
Xot47MBm9nn17dGNjPTvANVL51ckg4acrJ
7aDP2dDUBgt6cQWvwjXKraShneTfRNZHsm
7ezUJ5WGqxDJmDSU2Qjbd49XvNurMExCRz
7UH6TStnJxJTJSGkn58g9TwapowCwbrrNr
7WLZ92VMaVPV2CFATK3fFyDzwY2vrFuKGA
7YaJ7nZnXPnZc21ER4hF74jN6dm67ELhnT

We attempt to use the treasury to cover any expenses before tapping into the long term development addresses funds. We will keep this list updated as addresses split and/or are moved for security reasons.

RSB, or “Revolving Stake Bonus”, is a reward mechanism designed to dynamically support the Stakenet ecosystem that will support a network of projects (i.e XSN Cloud) whose proceeds are donated to the treasury for further developments or burned via a Proof of Burn mechanism.

TThe possibilities that arise from this 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.

Stakenet (XSN) will have a dedicated page for everyone to monitor the RSB mechanism for the projects built on top of it.

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 burns the transaction fees and will introduce RSB, which will serve to offset some or all of the inflationary effect of the block reward. Therefore, it is expected that XSN supply will only increase very slightly with time.

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

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 dx, et cetera...

Yes, it is. We have a lifetime contract with them so XSN will always be on any Ledger devices.

The coin age is the amount of time coins have been "maturing" for staking purposes. In order to be eligible to receive a staking reward, coins first need to mature. It's nothing more than a wait time for safety purposes.

In XSN, coins can start maturing one hour after 20 transaction confirmations and reach its maximum coin age 24 hours after.

Please check the Masternode guide here: https://medium.com/@ethminer89/stakenet-xsn-masternode-setup-guide-453a49663e66

It's 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, as this is a trustless system with no risks involved. It's beneficial for the Merchant to have TPoS since they will be earning a commission for the TPoS contract.

It's worth noting that the owner can run its own TPoS, so you don't need to hire a third party Merchant to use TPoS.

Staking rewards are paid to the staking wallet. TPoS rewards are paid directly to the Owner's wallet and Merchant's (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.

Yes, you will be able to due to our Cross-Chain Proof of Stake technology. Trustlessly and with no intermediaries involved. Bitcoin or any other supported currency.

XSN is working towards that. In the future you will be able to run Masternodes while holding XSN in your Leger Nano S.

It takes 2.6*(total active MN count) minutes for your Masternode to start getting rewards since activation. With around 1700 Masternodes currently on the network, it will take 73,6 hours.

Yes, but with different IPv4. We are implementing an IP security protocol, so each Masternode and Merchantnode needs a unique static IPv4 address. This is done to prevent centralization and further strengthen our network.

However, a Masternode and a Merchantnode can share the same IPv4.

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.

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.

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.

No, it will continue staking.

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.

2 MB.

Approximately 60 seconds.

Trustless Staking works with 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.

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.

We purposely made the barrier to become a TPoS Merchant easy. This will ensure competition and enough decentralization amongst TPoS Merchantnodes to prevent a single Merchant from monopolizing the market.

The developers team also can work on one-click setups for Merchant UI’s if need be to even further ensure decentralization to allow average non-techies to enter the market.

Our Masternodes will hold decentralized hashing tables (DHT’s) which will be the precursor in allowing our network to hold and execute 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.

No. Every Merchantnode 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.

XSN Cloud is one of the projects built within Stakenet. It's designed to make the user experience better and easier for XSN users and newcomers. It's not the main feature of XSN or Stakenet as it's only a small part of the whole ecosystem.

In XSN Cloud it's featured: a Multi currency wallet that automatically stake with Pooling staking (Staking-as-a-Service), Monitoring services, Masternodes-as-a-Service (trustless solution), a TPoS Merchants marketplace, ROI calculator and its RSB rewards page. If some of these services are not live yet, rest assured they're being worked on.

XSN Cloud collects fees from the users for using these services. Fees collected in other coins are used to buy XSN, thus creating buy pressure. Revenues are then sent to the Stakenet treasury to cover costs and further developments or to a dedicated burn address.

Users with enough coins should always stake on their own with TPoS or common staking solutions as their profitability will be higher and risks will be lower. Keep in mind XSN Cloud wallet is a centralized and trustworthy solution.

XSN Cloud is meant for those who don't have enough coins to receive regular rewards while staking in their own wallets. In XSN Cloud, all of the users coins are sent to one main address (or pool) that receive a lot of stakes reguraly and are equally distributed among the users. This way, users that otherwise would not receive a reward for months, can receive dozens of (smaller) daily rewards.

The disadvantage is that it's a centralized and trustworthy solution, so it involves huge risks. Those users with enough coins to receive stake rewards reguraly must always stake in their own wallet using TPoS as it provides maximum security.

For XSN staking rewards, fees deducted are a percentage equivalent to [2.5 * (amount of coins in the pool / circulating supply)]. E.g. if there's 1 000 000 XSN in the pool and the circulating supply is 20 000 000 XSN, fees will be [2.5 * ( 1 000 000 / 20 000 000)] = 12.5%. The higher the pool percentage represents over the total circulating supply, the higher the fee. This is done as a mean to avoid centralization and for people that can afford it to use TPoS instead as its much more secure.

Rest of the coins have a fixed fee of 10%.

No, as XSN Cloud charges fees for its staking services it will always be less profitable. The most secure and profitable choice is always to run your own TPoS or Masternode. Alternatively you can hire a TPoS Merchant to trustlessly stake for you and negotiate his comission. Usually Masternodes have a higher ROI than staking.

You can also hire a Masternode in XSN Cloud. This is a trustless solution, meaning you never lose ownership of your coins but there's a fee added.

Your coins will be deposited after 20 network confirmations.

Your deposited coins will be eligible to receive rewards from the staking pool 24 hours after the transaction has been confirmed.

Universal timezone and format: YYYY-MM-DD 23:59:59 UTC

As the staking pool grows bigger/ smaller you get a different share from the rewards. Frequency also changes, so it evens out.