Wanchain’s dPoS offers non-custodial staking rewards
Wanchain inherently enables Anonstake to automatically pay rewards for staking Wanchain
On the 3rd of September Wanchain foundation has successfully replaced the previous high-energy PPoW (permissioned proof-of-work) consensus mechanism with their new Proof of Stake protocol: Galaxy Consensus. Wanchain has developed Galaxy Consensus as a Proof of Stake protocol since they believe that stake should be the basis for future blockchains on-chain governance and development.
The new Galaxy Consensus proof of stake protocol is designed in a way that all users that are holding a small amount of WAN can delegate their staking rights to Validators and the Validators participate in the consensus on their behalf. Users can delegate their tokens securely and with no risk. Let’s take a look at what makes it risk free?
The key here is non-custodial delegation!
Most of the existing protocols that use delegation mechanisms require the delegating party to transfer funds into the proxy node’s account. The proxy node then directly participates in consensus and manually distributes consensus rewards. This method is centralized and trust based. It relies entirely on the honesty of the proxy node. Wanchain’s protocol enables users to delegate their tokens without having to send their tokens or lose control over them. Galaxy Consensus utilizes smart contracts to make their delegation mechanism:
Non-interactive: The process of delegation is non-interactive, meaning there is no need to establish a secure communication channel between the Original Signer (delegator) and the Proxy Signer (validator). The delegation is entirely completed through the on-chain transactions leading to a more efficient consensus process.
Secure: Galaxy Consensus protocol delegation mechanism is completely based on cryptographic algorithms. The stake of the WAN token owner is locked in a smart contract, not held by the proxy node. The proxy node only obtains the rights of the WAN holder to participate in consensus, and does not have any control over the staked funds, so users are fully protected.
Universal: The delegation mechanism uses the ECDSA signature algorithm in standard signatures, stake delegation and proxy signatures. This algorithm is widely used in the blockchain field. It is fully compatible with existing blockchain architectures. The verification logic for participants is completely consistent for both, directly registering to join the consensus mechanism and for joining through the delegation mechanism.
Transparent: Through Wanchain’s delegation mechanism, the delegation process and the data of the nodes participating in the consensus process are all stored on-chain and that makes all the data totally transparent. This both promotes proxy nodes to behave non-maliciously, while it also makes it possible for WAN holders to analyse the activities of proxy nodes and select an appropriate validator node based on their history.
Protocol inbuilt automatic staking reward distribution
To make it even better, the protocol also uses smart contract to automatically distribute staking rewards each epoch (epoch lasts roughly a day). In most of the delegation mechanisms out there today, delegates must rely on their proxy node operators to manually distribute staking rewards.
Wanchains’s protocol takes care of that itself, leaving you calm knowing that your rewards earned with staking participation are safe on your address.
Things to keep in mind
Although the protocol does its best to protect the user, it is important to keep an eye on your chosen validator(s). For validators to receive rewards they need to be online and ready when they are selected for work. If validator missed work, he won’t receive rewards and you won’t receive yours. So check your validator from time to time, to make sure he is active. You can check up on validators here:
If you have any additional questions regarding what to look for when picking a validator or about the Galaxy Consensus protocol, please head over to Anonstake’s telegram group where we’ll be happy to answer all your questions!
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