Staking TOMO 101: How it Works
Only 150 nodes can be elected as Masternodes on the network.
TOMO holders control which full-nodes can create, verify and validate new blocks on TomoChain’s platform.
Masternodes are elected by the TomoChain community, where TOMO holders vote for one or several Masternode Candidates by sending TOMO through a smart contract mechanism.
So Why Stake Your TOMO?
You will not only earn attractive rewards …
|Coin locked (%)||53%||79%||12%||48%||76%||46%|
|Number of Validators||150||33||27||21||100||36|
|Masternode annual ROI|
|Staking annual ROI|
|Reward Frequency||approx. 30 minutes||2 days & 20 hours||daily||depends on fullnode owners||daily||7 days|
…But will also play a role in ruling the system
Watch the videos below to learn more about TomoChain’s staking system
Staking with TomoMaster
Stake & Transfer your TOMO
Block time is the time needed to create a block. The targeted block creation time on TomoChain is 2 seconds. It means that, in a perfectly efficient network, one new block would be created every 2 seconds.
An epoch is an iteration of 900 blocks. In theory, an epoch happens every 30 minutes (900 * 2 seconds). So if event X is due to happen in 4 epochs, it should happen in approximately 2 hours.
The capacity of a Masternode Candidate, shown in TomoMaster, corresponds to the number of votes committed to that Masternode Candidate. This value includes the initial 50,000 TOMO needed to initiate a Masternode Candidate status. Each TOMO staked towards a Masternode Candidate equals one vote for it.
Masternodes are full-nodes that create, verify and validate new blocks in TomoChain’s platform.
Masternode Candidate: Any account can deposit 50,000 TOMO using the official on-chain governance dapp to become a Masternode Candidate. A Candidate becomes a Masternode when it belongs to the top 150 most voted Candidates in an epoch.
- As a general rule, you can optimize your staking rewards by voting for Masternodes with lower capacity (having fewer votes) because the reward for every Masternode is constant. If more people vote for the same Masternode, the reward is divided among more people and therefore one vote receives fewer rewards.
- That being said, never forget that if a Masternode Candidate is not among the 150 most voted, it loses its Masternode status and automatically stops earning rewards, which includes rewards for its Voters. If the Masternode falls out of the top 150 and cannot get back in, you will need to unvote and wait for 96 epochs (approx 2 days) to be able to vote again. During this process no rewards will be earned. Though the rewards can be higher, when voting for lower-ranked Masternodes, you need to check more often to ensure they are still in the top 150.
- Voting for higher-ranked nodes will earn fewer rewards but can be safer. You will not need to spend much time checking the Masternode status.
- Even if voting for a poorly performing Masternode could generate more rewards than voting for a well-performing Masternode, the better a Masternode performs, the better is the overall health of the network. Therefore, voters should also consider voting for Masternodes which are fully capable and committed to the overall health of TomoChain’s ecosystem in the long-run.
Masternodes contribute to the network, and receive block rewards for the work performed. The rewards likely exceed the cost of running the infrastructure.
Rewards are paid out every epoch (approx. 30 minutes).
You can un-vote from a Masternode whenever you wish to, but the tokens will be locked for the next 48 hours (86,400 blocks) after un-voting. This locking period is designed to promote the stability of the Masternode system.
You can check your Masternode staking rewards using TomoWallet. Alternatively, you can use TomoMaster or TomoScan.
You can resign from being a Masternode/Masternode Candidate whenever you wish to, but the 50,000 token deposit will be locked for the next 30 days (1,296,000 blocks) after the resignation. This locking period is designed to promote the stability of the Masternode system.