Elastos

Elastos BPoS NFTs: Frequently Asked Questions (FAQ)

Elastos BPoS NFTs FAQ

1. What are BPoS NFTs?

A: BPoS NFTs are unique tokens that represent staked ELA on the main chain network. They allow users to retain asset liquidity while securing the network, offering flexible options like trading and collateralizing staked ELA.


2. How do they function within Elastos?

A: Users first stake ELA on the main Elastos Blockchain, locking it in the BPoS model for a chosen period, during which their stake contributes to network security and governance. Following this initial lock period, users can mint a BPoS NFT on the Elastos Smart Chain (ESC) representing their locked ELA and the corresponding locked period yet still earning continuous rewards.

This NFT, based on the ERC-721 standard, represents the staked ELA and can be freely traded, transferred, or collateralized on the ESC without requiring the user to un-stake. As a result, the user retains liquidity while still maintaining their staked position in the network. This innovative approach to staking on Elastos allows assets to remain in circulation within decentralized finance (DeFi) applications or marketplaces, granting users greater flexibility.


3. How secure are BPoS NFTs?

A: The BPoS NFTs on Elastos are designed with security in mind by leveraging the ERC-721 standard and OpenZeppelin’s open-source, audited code. Here’s a breakdown of key security features:

  • NFT Contract: The BPoS NFT contract, following the ERC-721 standard, is immutable and ownerless, meaning no one can alter it post-deployment. Only the NFT holder has the authority to transfer their NFT.
  • Claim Contract: The claim process requires users to sign their staked transaction ID and target ESC address, ensuring authenticity. The claim contract checks signatures before NFT creation, preventing unauthorized minting.

By combining these mechanisms, BPoS NFTs maintain strong security through verified code and strict transaction protocols, reducing risks of tampering and unauthorized claims.


4. Which wallet supports BPoS NFTs on Elastos?

A: Currently, Web3 Essentials is the only compatible wallet for managing BPoS NFTs on Elastos. This wallet supports the staking, trading, and transfer functions of BPoS NFTs on the Elastos Smart Chain (ESC), making it essential for users wanting to maintain flexibility with their staked assets.

For a complete guide on setting up and using Web3 Essentials with BPoS NFTs, you can follow the step-by-step instructions here.


5. What are the different options present on the BPoS NFT tab in the Essentials wallet?

A: In the BPoS NFT tab, the Send, Receive, and Destroy functions have specific roles:

  • Send: Allows users to transfer their BPoS NFT to another wallet, maintaining the staked position but changing ownership.
  • Receive: Enables a wallet to accept the BPoS NFT, continuing the staking status in the new owner’s control.
  • Destroy: This function permanently removes (or “burns”) the NFT and converts it back into its original staking status, i.e. only voting rights on the Main Chain without a corresponding NFT representing ownership of such voting rights. Noting that the staked ELA remains locked until the lock period ends.

For more detailed instructions, visit the Elastos BPoS NFT guide here.


6. Will I get my staked ELA back after I minted an NFT and sent it to a new wallet?

A: No, when you mint a BPoS NFT and send it to a new wallet, the new owner of the NFT gains control over the staked ELA on the main chain. This means they can choose to hold, transfer, or destroy the NFT, managing the staked ELA as they see fit. Additionally, they will also receive the rewards associated with the staked ELA.


7. Will I be able to destroy a BPoS NFT even though my wallet does not have a main chain address?

A: No, the Essentials app will not allow you to destroy or claim if your wallet does not have a corresponding Elastos main chain address.


8. What is the Elastos consensus model, and how does BPoS integrate with it?

A: Elastos operates using a multi-layered consensus mechanism called Elastic Consensus, which combines Auxiliary Proof of Work (AuxPoW) and Bonded Proof of Stake (BPoS) to secure the network and provide utility.

  • Auxiliary Proof of Work (AuxPoW): AuxPoW leverages Bitcoin’s mining infrastructure, allowing Bitcoin miners to secure both Bitcoin and Elastos simultaneously without extra energy costs. Approximately 50% of Bitcoin’s hash rate (about 293.69 EH/s) is used to secure Elastos, providing it with substantial security and network-wide trust.
  • Bonded Proof of Stake (BPoS): In BPoS, users lock ELA on the Main Chain to secure the network and validate transactions. Validators must hold 80,000 staking rights to participate in block validation and share rewards with stakers. This incentivizes participation and contributes to the network’s stability.

9. How do BPoS NFTs unlock the value of staked ELA?

A: Traditional staking locks assets, limiting liquidity. BPoS NFTs solve this problem by converting main chain staking rights into ERC-721 standard NFTs that represent ownership to claim the underlying staked ELA and its accumulating rewards.

  • Staking and Minting:
    • Users stake ELA tokens on the Main Chain using the Essentials Wallet.
    • Once staked, they can mint BPoS NFTs on the Elastos Smart Chain (ESC). The NFT represents both the staked ELA and the accumulating APY rewards.
  • Trading and Transfer:
    • BPoS NFTs can be freely traded or transferred on the ESC, allowing users to unlock liquidity without ending their staking position or interrupting rewards.
  • Burning and Claiming Rewards:
    • NFT holders can burn NFTs at any time to claim APY rewards.
    • The staked ELA remains locked until the lock period ends, at which point it can be withdrawn by BPoS NFT holder and their corresponding main-chain address.

10. What is the BeL2 Arbiter Network, and how will BPoS NFTs be used within it?

A: The BeL2 Arbiter Network is an upcoming layer in the Elastos ecosystem that will enable new financial applications such as BTC-based loans, stablecoin issuance, and dispute resolution services.

  • Collateralization in the BeL2 Arbiter Network:
    • Arbiter Entry: Users can stake ELA BPoS NFTs as collateral to participate as nodes in the BeL2 network.
    • Earning BTC and dApp Rewards: BPoS NFT arbiter nodes earn percentage-based BTC and decentralized application (dApp) rewards, alongside Main Chain ELA staking rewards, for supporting time-based transactions and dispute resolution services that reflect the value of their collateral.
  • Decentralized Financial Services:
    • The BeL2 network supports native BTC services, ensuring decentralized loans are completed, maintaining stablecoin pegs, liquidating assets based on market conditions, and providing dispute resolution services.
    • This creates a secure, decentralized alternative to traditional financial systems without moving BTC off the mainnet.

11. What are the key advantages of Elastos BPoS NFTs?

A: The key advantages include:

  • Flexible Liquidity: Users can trade or transfer staked assets and their rewards as NFT receipts without waiting for the lock period to end.
  • Bitcoin-Backed Security: With a significant portion of Bitcoin’s hash rate securing Elastos, the network benefits from high levels of trust and reliability.
  • New Financial Tools: BPoS NFTs can be used as collateral for loans and arbitration services in the BeL2 network, creating new earning opportunities.
  • Simple Wallet Management: Users can manage NFTs through the non-custodial Essentials Wallet, ensuring full control over staked assets.

12. How can I mint, claim, and manage BPoS NFTs using the Essentials Wallet?

A: To mint, claim, and manage BPoS NFTs, follow these steps:

  • Minting:
    1. Enter Your Votes: Stake ELA on the Elastos Main Chain using the Essentials Wallet and allocate your voting power.
    2. Initiate the Minting Process: Confirm the minting transaction to create a BPoS NFT.
    3. Wait for Confirmations: Wait for 6 block confirmations on the Main Chain.
    4. Switch to Elastos Smart Chain: Move to the ESC to complete the claim process.
  • Claiming:
    1. Automatic Check for Claimable NFTs: On the ESC, Essentials will automatically search for any claimable BPoS NFTs tied to your wallet address.
    2. Claim the NFT: Click “Claim” to transfer the minted BPoS NFT to your wallet.
  • Managing:
    • Transfer the NFT:
      • Select “Send” and enter the destination address to transfer the NFT to another wallet.
    • Destroy the NFT:
      • Choose “Destroy” to convert the NFT back into a vote on the Main Chain, regaining its original staking status.

13. Are there future plans for BPoS NFTs within the Elastos ecosystem?

A: Yes, future plans include:

  • Integration into Marketplaces: BPoS NFTs will be incorporated into platforms like Elacity for trading.
  • Use in the BeL2 Arbiter Network: They will serve as collateral within the BeL2 network for BTC-based loans and dispute resolution services.
  • Network Security Rewards: Opportunities to help secure the network in return for BTC rewards.

 

Glossary

  • ELA: The native cryptocurrency of the Elastos blockchain.
  • Elastos Main Chain: The primary blockchain network for Elastos.
  • Elastos Smart Chain (ESC): A sidechain supporting smart contracts and dApps, compatible with EVMs.
  • BPoS (Bonded Proof of Stake): A consensus mechanism where users stake tokens to secure the network.
  • AuxPoW (Auxiliary Proof of Work): Allows Bitcoin miners to mine blocks on Elastos without extra effort.
  • BeL2 Arbiter Network: An upcoming layer facilitating decentralized financial services using BPoS NFTs.
  • ERC-721 Standard: A standard for non-fungible tokens, ensuring uniqueness and indivisibility.

Additional Resources

  • Elastos BPoS NFT Article: Click here for the official BPoS Release Article.
  • Step-by-Step Minting Guide: Click here to learn how to mint your BPoS NFT.
  • Elastos Official Documentation: Visit here for more information.