Waves Staking – Everything You Need to Know

The process of staking Waves is untraditional due to the unique consensus mechanism the network uses. Instead of a classic Proof of Stake system where users get rewards for staking their coin holdings, it uses a Leased Proof of Stake (LPoS) mechanism. With this consensus, users can create a masternode and receive rewards or lease their WAVES coins to a masternode and receive a percentage of the reward. To become an active node, you will need at least 10 000 WAVES. However, the higher the amount of coins the masternode has, the bigger the reward is. Hence, leasing more of your coin holdings will net you more rewards. In this article, I will show you how exactly to stake WAVES coins.

How to Stake Waves

As I mentioned before, staking Waves is done using LPoS, which means you will need to lease your coins to a masternode and receive rewards based on the amount you leased out. The currency that you lease to the nodes never leaves your possession and the nodes do not have the ability to spend them. You can always stop the process with just the click of a button in the wallet interface. Before I move on to the staking itself, I would like to mention the minimum requirements that you have to take into consideration in order to stake Waves.

Minimum Requirements
  • You will need a Windows 7 or Linux OS installed on the device
  • An installed and configured Waves Core Wallet
  • At least 30GB of hard drive space
  • It is also necessary to have at minimum 3GB RAM
  • WAVES doesn’t offer a cold staking option, which means that the device and wallet need to be online 24/7 in order to take full advantage of the staking rewards.
Summary: The minimum number of WAVES coins that you can lease out to a masternode is 0.002 WAVES, which you can always access and take back at any time through Waves Core Wallet. In short, you will need to download and install the wallet, so you can hold your WAVES coins. Then you can go to an exchange and buy the WAVES and send them to the core wallet. After everything, configure the wallet and choose which node you will lease your currency to, as different nodes will offer different rewards based on their activity.


Step 1: Download & Install the Official Wallet

First, you will need to download the official core wallet. You can do this from their official webpage linked here and click on Download Client. Once the download is complete, run the installation file and click on the Get Started button once the new window appears. Make sure you have enough hard drive storage as I mentioned in the minimum requirements section.

Step 2: Encrypt the Waves Wallet

Maybe one of the most crucial steps is encrypting the wallet. Without doing this, you will not be able to stake and lease your coins to nodes. Also, encryption secures your funds. To do this, open the Settings menu and click Encrypt Wallet. It will ask you to set an avatar and write a strong password. After that, you can press continue.

Step 3: Backup the Waves Wallet

This is the most important part if you ask me. Backing up your wallet adds another layer of security for your holdings. Go to the File menu and select the Backup option. It will ask you for a secret phrase, which you should not forget and then you can click on Back Up Now. The platform will now advise you that there is an increase in the frequency of scams and phishing attacks, to which you should press I understand. It will show you a recovery phrase, which you will need to write down and confirm in the wallet that you have written it down. Verify it by clicking on the words in the right order and then press Confirm.

Step 4: Transfer Coins to the Wallet

You need to transfer your WAVES coins to the wallet so that you can move on to the next step. Go to your wallet and click your avatar on the top left corner. There you will find your wallet address, to which you can send the coins from the exchange.

Step 5: Leasing with the Waves Wallet

The last step is to lease your coins to a masternode of your choice. When you open your wallet, there will be a button called Leasing that you need to click in the main menu. After you click it, a new tab will open with new info inside. Find the Start Lease button and click it to start the lease process. This will take you to a new tab, where you will find two boxes. One of the boxes specifies the address of the masternode that you would like to lease to and the other you can use to input the amount you would like to lease. Fill in the fields and re-confirm the information, then you can press the Start Lease button and then Confirm. Once you have done that, you will be able to see a new transaction in the Leasing Transaction Table, which means that you have successfully leased your coins to the node.

Waves Staking Reward

Depending on which masternode you choose to lease to, you will receive your rewards on a weekly or monthly basis. For supporting and securing the WAVES platform in this way, you can expect on average 2,1% returns to your investment per year. One of the great benefits of the WAVES platform is that on the 15th of every month, tokens are being airdropped to your wallet, which you can sell on the decentralized exchange for WAVES coins. The way your rewards will be distributed is that you will receive a share of transaction fees on a regular basis because the masternode itself provides the security and stability of the network. They are the only full node in the platform that has validation privileges.

How to Maximize Rewards

With WAVES staking or leasing there are no real shortcuts to maximizing your reward or straight up increasing it. What I can advise is to choose the appropriate masternode, to which you will lease your coins to, as different nodes have varying payout periods, activity and luck. An alternative method you can use is to have multiple core wallets on different devices and lease to different nodes at the same time. This could increase your rewards when your funds are more spread out.

Pool Staking:

The whole architecture of LPoS can be considered similar to a mining or staking pool. You and other users choose a masternode and lease to it, creating something like a pool of coins that the node uses to run and validate transactions with. I would like to note again that any leased coins, still remain in your possession. The nodes do not have any rights to spend or use the coins in any way. You can cancel the leasing at any moment.

Useful Weblinks

Official Website: https://wavesplatform.com

Announcement Page: https://bitcointalk.org/index.php?topic=3223136.0

GitHub: https://github.com/wavesplatform

Block Explorer: http://wavesexplorer.com

Whitepaper: https://blog.wavesplatform.com/waves-whitepaper-164dd6ca6a23

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