Continuing the tradition of explaining in detail about any new developments to its community, Creditbit has released a new update on a second distribution system – Staking.
Creditbit is offering the right to contribute to the CreditDAO with proposals or votes with this lock. The open source digital currency platform describes Staking similar to the Proof of Stake concept, but with a key difference.
The main difference between the two is that staking is not automatic and not linked to confirming transactions or consensus algorithm. The only prerequisite is locking tokens (PoT/P) for a longer period.
This lock automatically makes the person eligible to contribute to the CreditDAO with proposals or votes that their locked coins present. Also, there is a reward on the offer. For reward of participation you will get the opportunity to claim your staking reward – interest.
The interest will be measured off the trust you put in the Credit2 project. It will be calculated on variable algorithm based on the length of the stake, or in other words, your trust in the project.
To break it down further, it would be possible for the token holders to lock a certain amount of their tokens for the purpose of staking for a longer duration. Wallets like dapp, mist etc can be used for the purpose.
After each minimum time period, an owner can trigger a calculation of Staking award that will be added to their balance. The owners will be able to reclaim their staked coins or lock them for another round once the lock time will end.
Highlighting the importance of the community once again, the update urged the CreditBit community to suggest a name for the staking process. They also asked the community about what percentage of the reward should be the highest and which the lowest, explaining that if the percentage will be too high, the price will suffer and if too low, nobody will lock the coins to participate in CreditDAO.