Equality for All
So, how does V SYSTEMS put the Super in SPoS? The answer is brilliant: equal minting rights.
Unlike bitcoin’s PoW mechanism — as well as the original PoS — SPoS isn’t randomized.
SPoS block rewards don’t come from playing and hoping to win a game of crypto lotto.
Instead, block minting is awarded by merely being next in line. As of writing — you can see for yourself right here — only 15 VSYS Supernodes (coin minters) carry an ‘efficiency’ rating.
Each of these mining entities occupies a coin-minting ‘slot’ defined as an equal share of the right to mint a new block on the network. In short, every Supernode carries equal weight.
And if one should fail, another is only four seconds behind, ready and waiting to validate transactions.
Sixty total slots are available to Supernodes, and each corresponds to a specific second within a minute. Dividing seconds by current Supernodes gives us the number 4. So, every four seconds, one of the 15 miners puts a new block on the chain.
It then returns to the end of the line and waits for all other Supernodes to have their turn. Once another 60 seconds tick by, our original node is back at the front of the line, minting again.
Rather than waiting days, weeks, or sometimes months, current VSYS Supernodes are rewarded every minute of every day.
And here’s where it gets even more interesting: Supernodes are eligible to receive coins via lease from other stakeholders. And though they can neither spend nor transact leased coins, minters are incentivized to pay competitive lease rates.
And current payouts on leased coins reach double digits.
CloakCoin, running on today’s PoS model, pays 6% annually — which is generally considered a good return for doing nothing. VSYS, on the other hand, operating on SPoS consensus, tops out at 22% — over a 3x bump!
So, if you’re comfortable running high-end mining hardware, still have the opportunity to apply to operate a MainNet Supernode yourself. Supernode operators, by default, earn more than the high lease rates they pay out to lenders.
But if specialized equipment is out of your league, you can still lease VSYS coins to Supernodes for hands-off passive income. And once you create a VSYS wallet, you can intuitively lease from within:
However, beyond a meteoric launch and the invention of a new staking mechanism, perhaps most promising is how V SYSTEMS wants to help accelerate the pace of blockchain development.