Crypto

Staking Peonies

With the success of blockchain technology, participants have been finding ways to earn more coins and get their investments back. Crypto staking is one of the popular methods used by coin owners to make their crypto coins profitable. Staking is a simple, power-efficient method of earning passive income through eligible cryptocurrencies. Eligible coins are those that run on a Proof-of-Stake (PoS) mechanism. Coin holders must stake at least the minimum number of coins required to start. Validators are randomly selected from the pool of stakers. When selected, a validator gains the right to add a transaction, or a block, to the blockchain. If the block is valid, the validator will earn coins. Otherwise, it will lose a portion of the staked coins or the whole. Crypto exchanges and other platforms also offer staking services for coin owners who don’t want to do the hard work for a fee.

Aside from the usual crypto coins, do you know that masternode coins, like Peony (PNY), can also be staked?

What is a Masternode?

A masternode (MN) is just like a full node but performs other functions that a normal full node does not. Aside from keeping a full copy of the blockchain, masternodes also increase the privacy of transactions, do instant transactions, participate in governance and voting, and enable cryptic budgeting and treasury systems. These are the general functions of a masternode, and the functions vary for every cryptocurrency. Some cryptocurrencies may include other functions for the masternode. Maternodes need to be running 24/7 to not miss any updates on the blockchain. If a masternode goes offline, it will be penalized, usually with delayed payments.

Anyone who meets the requirements can run a masternode. The standard requirement among the blockchain network is an entry barrier, collateral to ensure that the operator will not cheat or corrupt the blockchain. The entry barrier is the minimum coins required to operate as a masternode. Different blockchains have different requirements, but they usually also include a minimum amount of coins of a particular crypto, a VPS or server, a dedicated IP for the server, and sufficient storage space to keep the blockchain.

Because masternodes handle more tasks and rights, they receive higher rewards than the full nodes.

What is a Peony?

No, we’re not talking about the flower. In the world of cryptocurrency, Peony, with a ticker symbol of $PNY, is a masternode coin in the Peony blockchain network. Peony network aims to bring cashless transactions into our daily activities using cryptocurrency. Peony implements a decentralized system and operates on the Proof-of-Stake mechanism.

Peony coins can be bought but not like Bitcoins or Ethereum. To purchase a PNY, you need Bitcoins or Ethereum in your wallet. Then, find an exchange that supports Peony and buy it using your Bitcoins or Ethereum. In other words, you won’t be able to purchase it directly using cash, debit card, or credit card. Like most crypto coins, PNY can be traded and exchanged in select crypto trading platforms like Crex24, Graviex, Stex, and Birake Network.

Peony is not as easy to obtain as other crypto coins like Bitcoin and Ethereum since it is not readily available on most crypto platforms. Binance is just one of the few platforms that sell PNY coins. It is essential to do some research first and find a reputable exchange to keep your coins safe and secured.

In the Peony network, masternodes earn PNY for successful transactions in the blockchain. Peony rewards masternode operators a hefty 65% for each block reward. Aside from buying and operating a masternode to earn Peonies, the coin is rewarded through staking.

How To Stake Peonies

The Peony network deploys the Masternode plus Proof-of-Stake (PoS) consensus mechanism. The blockchain distributes rewards, 80% going to the Masternode, while 20% is the PoS reward for staking the PNY coins. The block rewards increase as blocks are added to the blockchain. A masternode operator operating on a PoS mechanism, such as Peony, earns higher revenue, earning both masternode and staking rewards. However, setting up a masternode requires technical knowledge to maintain the node and increased investment for the collateral.

If you do not meet all the requirements to run a masternode, you can still stake your PNY coins. You don’t need to be a masternode operator to stake Peonies, but you must own Peony coins to start staking. As mentioned, you can exchange your Bitcoins or Ethereum coins for Peonies. Before you start staking your Peony coins, ensure you have at least the minimum number of coins, which varies for different crypto exchanges. Depending on the exchange, you may also have to lock up your coins for a certain period before they can be unstaked. Once you have acquired the minimum required coins, you can stake your coins in a platform or exchange that supports Peony staking and start earning rewards.

Aside from subscribing to crypto exchanges to stake your PNY coins, you can also join staking pools supporting Peony coins. One example is Simple PoS Pool, which offers cold staking services for PNY coins. Cold staking allows coin owners to delegate their PNY coins to their platforms without requiring their PNY wallets to be online 24/7. However, in traditional staking, the wallets need to be online all the time to earn rewards. Staking pools will do the work for you with commissions in return.

Conclusion

A Peony coin is not your regular crypto coin. It’s the native coin on the Peony blockchain network, and only a few crypto platforms sell these coins. PNY is considered a masternode coin and is rewarded to masternode operators in the Peony network. However, non-masternode users will still be able to stake Peony coins. Peony coin owners just need to find a crypto exchange or a staking pool to delegate their coins into and start earning PNY coins as rewards. This is a great way to make passive income and earn more PNY coins.

About the author

Glynis Navarrete