If you’re well-versed or new to Web3 and considering a valuable contribution, Elastos offers a unique opportunity. The project not only presents a novel approach to blockchain consensus but also provides strong financial incentives for participating as a validator. By coupling Bitcoin’s security, community governance, and a DAO Council’s integrity, Elastos has created a validator ecosystem ripe for efficiency and scalability. Here’s what you stand to gain by joining this innovative network as an Elastos Consensus BPOS Validator!
The Currency: ELA
$ELA is the universal asset within Elastos, underpinned by a deflationary model. The currency has a current circulating supply of 21,364,394 ELA with an issuance cap set at 28,219,999 by 2108. ELA comes from the Elastos Mainchain, a blockchain merged mined by Bitcoin. The next issuance halving is due in December 2025, supporting an increased potential for earning more ELA now rather than later.
The Incentives for Elastos Consensus BPOS Validators
Becoming as a BPOS validator means working with Bitcoin miners to validate transactions on the Elastos Mainchain, with distinct advantages. A full step-by-step guide can be found here.
- APY: Up to 27% APY without BPOS staking incentives program added (see below). Validator Calculator available here.
- Low Entry Barrier: A 2,000 ELA pledge and a $6/month node maintenance fee are all it takes to start.
- Revenue: Active BPOS validators are directly rewarded with 25% of the block rewards.
- Yield: Calculated on the staking amount and pledge time, favouring both new and existing validators.
- Staking Rights: 36 nodes are randomly selected every 36 blocks, ensuring equal opportunities for all.
- Rewards Distribution: Automatically handled by Elastos’ mainchain.
“Setting it up according to the guide was quick and easy. I’m hosting it on a Contabo BOS at $6/month. It’s been running flawlessly since the beginning of BPOS. Rewards are distributed instantly, and on top of that, I regularly receive early rewards from the Elastos Foundation”. – Iggis Popis, BPOS Validator
Staking Rights
In Elastos’ BPoS system, participants stake ELA tokens for periods of time using the Essentials Wallet and receive equity tokens to vote on validators. This allows stakers to also earn ELA rewards. Higher yields are found with nodes with fewer votes, and periodic re-voting is necessary once pledge times expire to continue earning rewards, helping revolve validator nodes. A full step-by-step guide can be found here.
- ELA Staking Duration: 10 to 1000 days.
- Equity Tokens: One staked ELA = One equity token for voting.
- Reward Calculation: Proportional to ELA amount and time.
- Pledge Time: Fixed but extendable, within node expiration limits.
- Real-time Adjustment: Benefits updated if pledge time extended.
- Profit Sharing: Node owners 25%, Stakers 75%.
- Special Nodes: 12 CR Council nodes are off-limits for voting.
- Re-Voting: Required at the end of each pledge period.
Special Staking Incentive Program
The Elastos Foundation (EF) has launched a program allocating 1 million ELA for staking on community nodes, designed to aid nodes in attaining the 80,000 staking rights required for activation. This initiative further distributes staking profits to stakers and validator nodes monthly, enhancing your potential earnings.
Staking Rewards Partnership.
Elastos has teamed up with Staking Rewards to highlight the advantages of our consensus system. The Elastos Growth Team will be present at the Staking Summit in Turkey on November 10th. They aim to connect with attendees and showcase the unique features of Elastos’ validator system, as well as the opportunities it offers for earning ELA. Other speakers at the event will include Justin Sun, Founder of Tron, and Anton Bukov, Co-founder of 1inch.
The Power of Elastic Consensus
So how does everything work and come together? Elastos employs a threefold consensus mechanism. A comprehensive technical overview can be found here.
- Auxiliary Proof of Work (AuXPoW): Leverages Bitcoin’s existing computational power to secure the Elastos mainchain.
- Bonded Proof of Stake (BPoS): Allows stakeholders to lock ELA assets and gain voting rights, based on which BPoS nodes work with Bitcoin miners to validate transactions.
- Proof of Integrity (PoI): An additional governance layer for validating sidechains, from identity to smart contract chains, administered by a community-elected council using ELA for voting and collateral.
Pioneering Innovation
Five years since its launch, Elastos has made remarkable strides in:
- Identity Management: Through Decentralized Identifiers with Zero/Knowledge Proofs (DID).
- Data Storage: Enabled by HIVE, integrating IPFS and personal cloud hosting.
- Networking: via Ethereum-compatible Smart Chain and decentralised ‘Carrier’ data and messaging communications.
- Security: Using Runtime for secure execution environments for decentralised applications.
Partnerships include Tencent Cloud and Alibaba Cloud, with ecosystem teams like Elacity building a digital capsule marketplace for Web3 digital asset monetisation.
Become a Elastos Consensus BPOS Validator today!
The Elastos ecosystem offers not only consensus opportunities for validators and stakers but also possibilities beyond the Mainchain. Soon, stakers will be additionally able to mint BPoS NFTs, receipts which enable secondary markets and trading opportunities through smart contracts on the Elastos Smart Chain. Follow Elastos to stay up to date!
Interested in becoming a validator? Check out our comprehensive guide for a step-by-step process on becoming a validator today.
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