We’re thrilled to announce the upcoming launch of the Mintlayer staking program.
By staking their tokens, users have the opportunity to earn more ML, as well as testnet ML tokens (TML). These testnet tokens allow participants to participate in the upcoming testnet, providing core infrastructure for development and additional rewards for doing so.
The staking program is an important step forward in Mintlayer’s journey, providing an avenue for users to engage more deeply with our ecosystem and benefit from their participation.
Securing the Network
To secure the network Mintlayer will use a proof-of-stake consensus mechanism. To make the network as democratic as possible, we have configured our block requirements so an average desktop CPU could run a node.
We would like to hit the ground running for testnet with a community trained to navigate our various Dapps and comfortable with our support systems. To meet these needs, we are launching a staking platform that will let all ML holders earn more ML by staking their tokens.
The Mintlayer staking dashboard will go live on June 5, 2023.
We will update this post with the address to the staking dashboard once it goes live.
Only profiled users will be able to access staking. Users that have not completed KYC will be prompted to do so when they sign in or create an account. Use the same email address you used for KYC to avoid being misidentified.
How to Stake
- Sign in or sign up using the email you provided during KYC.
- Go to the staking dashboard and select “connect wallet”.
- Approve the dashboard’s connection in your Metamask wallet.
- Select the “Stake” option on the dashboard and choose your locking period.
- Confirm the transaction in your Metamask wallet.
If done correctly you will no longer see the selected tokens in your wallet, but you will be able to view them in the staking dashboard.
Lockup Intervals and Earning Power
Mintlayer’s staking platform allows users to lock their staking to earn additional ML. For every month of lockup, the modifier increases by 25%.
The lockup multipliers are as follows:
- No Lockup - 1x modifier
- 1 Month - 1.25x modifier
- 2 Months - 1.5x modifier
- 3 Months - 1.75x modifier
- 4 Months - 2x modifier
- 5 Months - 2.25x modifier
- 6 Months - 2.5x modifier
The way this will work, if a user has 1200 tokens and stakes them without a lockup, they will have 1200 ML earning power.
If the same user stakes them for 1 month they will have (1200*1.25) = 1500 ML earning power.
If the same user stakes them for the 6 month maximum they will have (1200*2.5) 3000 ML earning power.
How Much Will I Earn?
The total rewards pool is 560,018 ML tokens and the staking duration is 180 days. Users will ultimately share 3,111.21 tokens each day. If you are the only user staking you would earn all 3,111 tokens.
Your reward will be equal to your earning power as a percentage of all staked earning power times the payout.
For Example: If your staked tokens * your lockup modifier make up 5% of the earning power, your daily rewards would be approximately 155 ML. Over 6 months you would earn over 27,000 ML.
Rewards are paid out at the end of each Ethereum block. Currently there are 7,084 blocks per day, so rewards will be continuously updating.
Users should consider transaction costs when claiming rewards.
Earn Testnet ML For Additional Earning Potential
Users will accumulate TML during staking that will allow them to participate in block signing for our upcoming testnet.
The TML you receive is not transferable to ML tokens, and will have no utility outside of the testnet.
Users who participate in the testnet with their TML have the opportunity to earn additional rewards. We’ll share more details about this as we draw closer to the testnet launch.
For more details, check out the Mintlayer staking program.