Mina - P2P.org Blog: Insights, Guides, and News

Mina Mina Protocol Staking Economics & Rewards

In this blog post we will briefly walk through the Mina protocol incentives and cover staking rewards calculation.Staking economics is very important for proof of stake (PoS) networks. Proper incentives help blockchains to maintain properties such as immutability and censorship resistance, building a solid foundation of node operators securing the network participating in consensus.  <h3 id="mina-inflation">Mina Inflation</h3>Most PoS networks implement continuous token emission to incentivize node operators and delegators. Mina is not an exception. There is no cap of a max MINA supply as it grows every block. Every canonical block (successfully produced block written in the main chain) contains a coinbase (block reward) that is distributed to a node operator that produced it.Currently, block rewards are fixed at 720 MINA to constitute the inflation of 12% assuming that all tokens are staked. In future it is expected for block rewards to be dynamic targeting inflation depending on a staking ratio to incentivise participation in staking. The less tokens are staked the higher will be the coinbase.Token emission will decrease periodically until it reaches 7% annually. This schedule can be changed by the community via governance procedure in future.<figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/x0gebrSAlSXAjB8-rg0c8BVUr_RAAtrW1ywDEmakBgNCCWKDc3cuxz4sSO-c-0qVAidRHOEAGWh-W-isPlH5FqmdWR8LVloHMtlgY_DfBKx31fqrZvJ2FsxPDUjwMlhieGvUO1Fe" class="kg-image" alt loading="lazy"></figure>For token holders, staking is important to avoid dilution of their total share in Mina network. Some MINA tokens are locked for a certain period of time. They are not transferable but capable of being delegated or staked. Coinlist token sale participants and those who purchased MINA on exchanges have unlocked MINA that can be transferred to any Mina address.To further incentivise staking every address without locked Mina will receive a higher return on its Mina due to supercharged coinbase. <h3 id="mina-protocol-specifics">Mina Protocol Specifics</h3>In Mina periods are split into epochs that last approximately 14 days and 21 hour. Staking operations like delegating and undelegating are executed immediately, but effects are applied only a couple epochs later due to Mina specifics. Stake distribution and balances are fixed for a particular epoch and any changes are taken into account with a time lag of 1-2 epochs.Epoch consists of 7140 slots, each is a period of time when node operators can create a block and produce SNARKs (proofs for transactions that compress the size of a blockchain). Currently it lasts ~3 min, but it can be shortened in future.Chances of being selected as a block producer are proportional to the node operator's stake. The final output is determined by a<a href="https://en.wikipedia.org/wiki/Verifiable_random_function?ref=p2p.org"> verifiable random function</a> (VRF). Multiple pools can be assigned with the same slot potentially resulting in a short-range fork that will be resolved by <a href="https://minaprotocol.com/blog/how-ouroboros-samasika-upholds-minas-goals-of-decentralization?ref=p2p.org">Ouroboros Samasika</a>.In fact, all accounts delegated to a particular pool participate in the VRF distribution to win the slot. Staking pool that is being delegated by the winning account can compete for the slot and receive a reward if the block was selected by the consensus rules as a canonical one. In general, coinbase is 720 MINA at the moment, but if the account that was assigned to that slot holds only unlocked tokens - coinbase is doubled being equal to 1440 MINA.There is no slashing in protocol rules, but rewards to delegators are distributed by block producers manually, pro rata to their share in the pool. It is important to select a reliable block producer as malicious actors can withhold rewards, which will result in a time lost for re-delegating to another pool. In case of a supercharged block, share of delegators with unlocked tokens is doubled to reflect their contribution to the increased coinbase (mechanics might differ among block producers). <h3 id="staking-return-calculations">Staking Return Calculations</h3>There are ~24 epochs in a year and APR will vary in a short period of time (a few epochs) but should smoothen in the long term as more epochs pass. To define expected annual staking return we can extrapolate epoch performance to future periods. This method doesn't give us precise results but allows us to see which epoch had better return compared to others.annual_apr = epoch_reward / epoch_balance * n_epochs_yearepoch_reward = total_pool_epoch_rewards * (1 - pool_fee) * delegator_sharedelegator_share = delegator_epoch_balance / total_pool_stakeCalculation above doesn’t take fees into consideration. The more epochs are aggregated for averaging the better is the approximation of annual staking return. It also doesn’t take compounding into account, but it is possible to summarise actual rewards for a year and see the overall annual return.In Mina, rewards received from delegating are staked automatically by design. Try to use a<a href="https://docs.google.com/spreadsheets/d/124XccIxA3O3K6vKxmflp3oOzFRTNGhEQRCGo4j_cLd0/edit?usp=sharing&ref=p2p.org"> simple spreadsheet</a> to check your epoch rewards. We provide reward reports for P2P delegators by request, visit p2p.org/mina for more details.<hr>Note, that payout is not always equal to an epoch reward as some pools (including P2P) distribute rewards more frequently, so you will need to add up those. If you have questions, feel free to join our<a href="https://t.me/P2Pstaking?ref=p2p.org"> telegram chat</a>. We are always open for communication.<hr><h3 id="about-p2p-validator">About P2P Validator</h3>P2P Validator is a world-leading non-custodial staking provider securing more than $3.2 billion in staked assets by over 10,000 delegators across 25+ high-class networks. P2P Validator is an early genesis member and one of the early seed peer providers. We have been participating in Mina since the first testnet and intended to support Mina in the long term.Web: <a href="https://p2p.org/?ref=p2p.org">p2p.org</a>Stake MINA with P2P: <a href="https://p2p.org/mina?ref=p2p.org">p2p.org/mina</a>Twitter: <a href="https://twitter.com/p2pvalidator?ref=p2p.org">@p2pvalidator</a>LinkedIn: <a href="https://www.linkedin.com/company/p2p-org/?ref=p2p.org">LinkedIn.com/company/p2p-org</a>Telegram: <a href="https://t.me/P2Pstaking?ref=p2p.org">t.me/P2Pstaking</a>

Alex Bondar

from p2p validator

Mina Mina Staking Guide: Stake MINA Using Clorio Wallet

Clorio wallet is in beta version with an open sourced codebase. It is highly recommended to verify the checksum of the application if using a desktop version.<a href="https://p2p.org/mina?ref=p2p.org">Mina</a> is a lightweight, highly efficient blockchain allowing network participants to seamlessly join the network to verify and secure the chain. On the Mina blockchain you can stake your MINA tokens to earn staking rewards - currently up to 24% APY. The following guide walks you through Mina staking using <a href="https://clor.io/?ref=p2p.org">Clorio wallet</a>. Clorio is a Mina specific wallet which lets you store, send and stake your <a href="https://p2p.org/mina?ref=p2p.org">Mina</a> tokens.<hr><h2 id="staking-mina-protocol-mina-video-guide">Staking Mina Protocol (MINA): Video Guide</h2><iframe width="560" height="315" src="https://www.youtube.com/embed/Pgbt-DXWX_A" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe><hr><h2 id="staking-mina-using-clorio">Staking MINA Using Clorio </h2>For more information, follow the steps below.<ol><li>Creating a Mina Wallet</li><li>Staking Mina using Clorio</li></ol> <h3 id="1-creating-a-mina-wallet">1. Creating a Mina Wallet </h3>It is possible to access Clorio using Ledger wallet if you have installed the <a href="https://docs.minaprotocol.com/en/advanced/ledger-app-mina?ref=p2p.org">Mina app</a>.<ol><li>Visit <a href="https://mainnet.clor.io/?ref=p2p.org">mainnet.clor.io</a> and press Create wallet. Select your preferred way of accessing the wallet.</li></ol><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/uxaxr6vCdtp5Ey8JfYfkKrN3zov67lUyqNGylWldR1n2PxH0yO5f6ZpobmhKzgFPH270NHbn860d41GoUSdczbmH7mZsegxGEvaKLVlZg0fZ8x-5BdiZR2uJtbJxLFT0uDAcMMul" class="kg-image" alt loading="lazy"></figure>2. Save your private key in a safe place. Download a PDF paperwallet and press Continue.<figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/G0CSbFS6gCocTHjnrEqb0t5N1gjWtCTbsqWYivolqbBlw2tQRo_OOSPxNrmDKkvSkjXtGcZ0PqVkiV0orpUA6a-13yQBFFwO74882yFH9pKPIgNhrQ33xbKGJvije702lS5rSs43" class="kg-image" alt loading="lazy"></figure>3. Verify your private key and press Continue.<figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/5uMlUgP9jFsUiVd6rHZyX5vTrYDznK_3t59MS_ue5WrYHpI559hq_OAo9OW0SxMIKmyIpZ6OgzkrYyj1lJtwihA4xHtqaLTjjBJcJxld3UDDtRHFrX8G3a62utUDz4PEva187eGi" class="kg-image" alt loading="lazy"></figure>4. Transfer Mina to your address. Note that for the first transaction, 1 MINA will be taken by the protocol as a wallet creation tax.<figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/ors6Ati_Uz4xLH3ZSXF7GOH4Hahcx9obpe3xx3Sbg_wtsXQASsR7OJygHoGFmkcBEnXVxODnH5qOtq7DbRi550KuE0KST2thuNX1syi0kcrBHIf21dLdRmHyC7eZ2waXzZQXDqia" class="kg-image" alt loading="lazy"></figure>Your Mina wallet is now live and you can manage your Mina assets on the blockchain.<hr><h3 id="2-stake-your-mina-tokens-with-p2p">2. Stake your MINA tokens with P2P </h3>To stake your <a href="https://www.p2p.org/mina?ref=p2p.org">MINA</a> tokens and earn staking rewards, follow the steps outlined below.<ol><li>Access your wallet if needed and go to the staking hub. Select P2P Validator and click Delegate.</li></ol><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/nj32r4V7V15HEwQ0cG8dskV6lgv0K4KNcSkiv7bGY_OY-5Fj9riesVov8gw5fsF7VCgVYGsZlYUILlVFvikOciLKd2nT8CEK9XVx6U_2mA3qdiQoqI7QkoluzqpE9_o2k6Y8GTqi" class="kg-image" alt loading="lazy"></figure>2. Confirm the action.<figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/0RLBTMZ_V9i7YHKwffPYTwXu9NXY2bu9CKTbWmYtwr15AaS6i9xpxKtOFV-RVfoK_mYrqZsC10OOSVyMNXsyhgf79X3wTZtcUn6UFxMhAQc3poyEkA8ojBtzaRnWUFD5zpg9WnFE" class="kg-image" alt loading="lazy"></figure>3. Set the transaction fee and click Proceed. In most cases you can use a default value. It is possible to check <a href="https://feenow.minascan.com/?ref=p2p.org">feenow.minascan.com</a> to see the current state.<figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/TG2ea1yagMJO8XF9K4jlUdbJvA35ojQLtgArLTKhv707FZRuDio3X2qJ7Eg6FP4bFgh8ePv3L1OS1IRJMX_bSICPUt47mFBRy7-tMLtxQhLVtzON7azUwja9sDdMCirZVdjOpVvI" class="kg-image" alt loading="lazy"></figure>4. Confirm the transaction using your Private Key.<figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/4OVTlFVH4BAN1Qd3fJQ69G6KmuI-mhxIheb3cneH_Ge1dpPXJ-h_idoFlI5P4iJ0KyEZm9SEzHk3rP9YXBhmpQbPvBrfjxBP4hPC7R3KGXtqeKzWqyzgWQ1UOTc1U5eu_xMw9D5y" class="kg-image" alt loading="lazy"></figure>5. After the confirmation you will be able to see your current delegation. Also, you can go to the overview tab to check the transaction status.<figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/HBddWKJjO-Su1ZUnbI7yUyQDHHZm6MqgxVkS3gnOIFwWJdCq3QacC5kvRdOlCoZBldVHvuazif9WtCdLga7tuHBpMBFmpWNYpRl7rfP8WnfZDxe0VhhvEHHQsiAwGYJ8oAf2d_mW" class="kg-image" alt loading="lazy"></figure>Congratulations! You have successfully delegated MINA to P2P Validator. You will now start earning regular staking rewards. <hr>Each block producer has own payout conditions, manually distributing staking rewards. Your delegation will start participating in the consensus after the next epoch (1 epoch is ~15 days). If you delegate from a locked account it is recommended to create a separate address, periodically transfer rewards and delegate from there as well. It increases the chances of receiving a supercharged coinbase (double block reward) benefitting all delegators of a particular pool.<hr>If you have any questions, please feel free to join our <a href="http://t.me/P2Pstaking?ref=p2p.org">Telegram chat</a>. We are always open for communication.<hr><h3 id="about-p2p-validator">About P2P Validator</h3>P2P Validator is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than $3.2 billion is staked with P2P Validator by over 10,000 delegators across 25+ networks. We are actively involved in <a href="https://p2p.org/mina?ref=p2p.org">Mina staking</a> since the first testnet being an early genesis member and mainnet seed peer provider. <ul><li>Web: <a href="https://p2p.org/?ref=p2p.org">p2p.org</a></li><li>Stake Mina with P2P: <a href="https://p2p.org/mina?ref=p2p.org">p2p.org/mina</a></li><li>Twitter: <a href="https://twitter.com/P2Pvalidator?ref=p2p.org">@p2pvalidator</a></li><li>LinkedIn: <a href="https://www.linkedin.com/company/p2p-org/?ref=p2p.org">linkedin.com/company/p2p-org/</a></li><li>Telegram: <a href="https://t.me/P2Pstaking?ref=p2p.org">t.me/P2Pstaking</a></li></ul>

Alex Bondar

from p2p validator

Mina Mina Protocol - Network Overview

Mina is a decentralized proof-of-stake blockchain with a constant-sized chain of ~22kb, which is possible due to utilising zero knowledge proofs.Such a small size allows anyone to synchronise the chain almost instantly making participation in consensus quick and efficient.Developers will be able to build <a href="https://minaprotocol.com/docs/architecture/snapps?ref=p2p.org">SNARK-powered applications</a>, Snapps, on top and empower privacy and data security features and users will be able to control their personal information through sharing proofs instead of the data itself.<h2 id="current-state-market-potential">Current State & Market Potential</h2>Mina Protocol was successfully launched on mainnet on March 23, 2021, after more than two years of continuous research and development.The problem of personal data has become more relevant than ever. According to <a href="https://www.csis.org/analysis/economic-impact-cybercrime?ref=p2p.org">CSIS</a>, two-thirds of people online suffered from bad actors resulting in leaks of personal data. Adding to this, more than <a href="https://notified.idtheftcenter.org/s/resource?ref=p2p.org#annualReportSection">290 million identities were compromised</a> in 2020 alone.Giving up the right to verify data by a single third party leads to the risk of giving it to the wrong entities. Through being a light-weight protocol, Mina allows anyone to run a node, increasing the number of participants who add up to the decentralization at lower cost of operating an infrastructure.For example, current Bitcoin chain size is over 320Gb while Mina would allow full node security with just ~22kb of data, by utilizing recursive zk-SNARKs (a type of zero knowledge proof), eliminating the requirement for nodes to store the whole chain state.<h2 id="token-allocation-utility">Token Allocation & Utility</h2><a href="https://minaprotocol.com/blog/mina-token-distribution-and-supply?ref=p2p.org">Mina raised ~$29 million</a> from over <a href="https://minaprotocol.com/about?ref=p2p.org">46 institutional backers</a>, including Accomplice, Paradigm, Fenbushi, Naval Ravikant and Bixin Ventures.The overall token allocation looks as follows:<figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/4LCyUILYTJx73CcdbQcprJiykrcsXh8OM1fCH0O8N2rWgNTq4K6To0kc3haEmCxOYPYnNl-AJJk2iCE3Ajsj_6oN6ZHTD7zKvkIc4DKDcMKk_VsrlN9pfYsnJ38N4Z7vuocSO_1M" class="kg-image" alt loading="lazy"></figure>Mina native token is a staking unit serving the purpose of securing the network and incentivizing nodes to provide their services. Transaction fees are also denominated in the native MINA token, as well as SNARKs, which are necessary to maintain the lightness of the Mina blockchain.There will be a MINA <a href="https://coinlist.co/mina?ref=p2p.org">public sale via Coinlist</a> on 13th of April. To acquire tokens you should register in advance and await further instructions.<h2 id="staking-economics">Staking Economics</h2>Mina currently uses <a href="https://minaprotocol.com/blog/how-ouroboros-samasika-upholds-minas-goals-of-decentralization?ref=p2p.org">Ouroboros Samasika</a> consensus. Block producers for a particular epoch (~14d 21h) are selected using verifiable random function and chances to win a slot are proportional to the delegated stake.During the first year, block rewards will target an annual inflation of 12% decreasing down to 7% after 2 years. Each successfully produced block contains a coinbase (reward for producing the block), which is currently equal to 720 MINA. If the account that has won a slot has no locked up tokens on a balance (e.g. users who purchase tokens from the Coinlist sale), the block coinbase will be supercharged resulting in a double reward. Supercharged rewards are in place for the first 15 months of mainnet.Holders can delegate their funds in a non-custodial manner to earn a share of rewards in proportion to their stake. Staking since the beginning of the mainnet will result in higher returns for delegators.We encourage delegators with locked tokens to transfer rewards to a separate fresh address and stake from there to increase the chances of a supercharged coinbase.<h2 id="slashing-risks">Slashing Risks</h2>There is no risk of slashing due to the specifics of Ouroboros consensus family. Nevertheless, in order to receive a reward a block producer must be online at a given time slot.<h3 id="useful-mina-resources">Useful Mina resources</h3><ul><li>Website: <a href="https://minaprotocol.com/?ref=p2p.org">minaprotocol.com/</a></li><li>Github: <a href="https://github.com/MinaProtocol/mina?ref=p2p.org">github.com/MinaProtocol/mina</a></li><li>Docs: <a href="https://minaprotocol.com/docs/getting-started?ref=p2p.org">minaprotocol.com/docs/getting-started</a></li><li>Technical Whitepaper: <a href="https://minaprotocol.com/static/pdf/technicalWhitepaper.pdf?ref=p2p.org">minaprotocol.com/static/pdf/technicalWhitepaper.pdf</a></li><li>Economic Whitepaper: <a href="https://minaprotocol.com/static/pdf/economicsWhitepaper.pdf?ref=p2p.org">minaprotocol.com/static/pdf/economicsWhitepaper.pdf</a></li><li>Blog: <a href="https://minaprotocol.com/blog/?ref=p2p.org">minaprotocol.com/blog/</a></li><li>Forum: <a href="https://forums.minaprotocol.com/?ref=p2p.org">forums.minaprotocol.com/</a></li><li>Community: <a href="https://discord.com/invite/Vexf4ED?ref=p2p.org">discord.com/invite/Vexf4ED</a></li></ul><hr>Want to stake Mina with us? Visit p2p.org/mina to find out more about Mina staking and our special offer. If you have any questions, feel free to join our<a href="https://t.me/P2Pstaking?ref=p2p.org"> Telegram chat</a>, we are always open for communication.Special thank you to <a href="https://twitter.com/etekis?ref=p2p.org" rel="noopener noreferrer">Emre Tekişalp</a> for the contributions to this article.<hr><h2 id="about-p2p-validator">About P2P Validator</h2><a href="https://p2p.org/?ref=p2p.org">P2P Validator</a> is a world-leading non-custodial staking provider securing more than $3 billion in staked assets by over 10,000 delegators across 25+ high-class networks. P2P Validator is an early genesis member and one of the early seed peer providers. We have been participating in Mina since the first testnet and intended to support Mina in the long term.<hr>Web: <a href="https://p2p.org/?ref=p2p.org">p2p.org</a>Stake MINA with P2P: <a href="https://p2p.org/mina?ref=p2p.org">p2p.org/mina</a>Twitter: <a href="https://twitter.com/p2pvalidator?ref=p2p.org">@p2pvalidator</a>LinkedIn: <a href="https://www.linkedin.com/company/p2p-org/?ref=p2p.org">LinkedIn.com/company/p2p-org</a>Telegram: <a href="https://t.me/P2Pstaking?ref=p2p.org">t.me/P2Pstaking</a>

Alex Bondar

from p2p validator

Mina Mina Protocol (MINA) Staking Guide

This delegation guide will walk you through the steps of staking MINA tokens using the client interface to earn <a href="https://p2p.org/mina?ref=p2p.org">Mina Protocol staking</a> rewards. To get started, please ensure that you have a wallet funded with MINA tokens.<h3 id="step-1-set-up-the-environment">Step 1: Set up the environment</h3>To get started here, install Ubuntu 18.04/Debian 9. Upon successful installation, please follow the steps outlined below: <ol><li>Add repository: echo "deb [trusted=yes] http://packages.o1test.net release main" | sudo tee /etc/apt/sources.list.d/mina.list</li><li>Update: apt-get update</li><li>Install the latest Mina daemon: apt-get install -y curl unzip mina-mainnet=1.1.3-48401e9 (check release notes for the newest version)</li></ol>To confirm correct configuration, check the version: mina version (you should see: Commit 48401e92d94948c066c03ca76326c065e5cbfc92 on branch master)<h3 id="step-2-delegate-mina">Step 2: Delegate MINA </h3>Upon successfully configuring the staking environment, refer to the steps below to start delegating. 1. Unlock your account.<pre><code class="language-bash">mina account unlock -public-key $MINA_PUBLIC_KEY</code></pre>2. Delegate to a selected block producer. If you wish to stake with P2P, use our delegation address: B62qs2Lw5WZNSjd8eHBUZXFYyRjV8oKtrZMFDn1S1Ye62G71xCQJMYM3. Paste the following code:<pre><code class="language-bash">mina client delegate-stake \ -receiver B62qs2Lw5WZNSjd8eHBUZXFYyRjV8oKtrZMFDn1S1Ye62G71xCQJMYM \ -sender $MINA_PUBLIC_KEY \ -fee 0.1</code></pre>Your delegation will start to take part in consensus after the next epoch or two (~15 - 29 days). There is no MINA un-bonding period and staking rewards are distributed manually every epoch (~14d 21h) and automatically staked if your account is delegating.If you delegate from an account with locked tokens it is highly recommended to transfer your rewards to a separate fresh account and stake from there to increase the probability of receiving a supercharged coinbase.<hr>If you have any questions, please refer to our<a href="https://t.me/P2Pstaking?ref=p2p.org"> Telegram chat</a>. We are always open for communication.<hr><h2 id="about-p2p-validator">About P2P Validator</h2><a href="https://p2p.org/?ref=p2p.org">P2P Validator</a> is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than three billion of USD value is staked with P2P Validator by over 10,00 delegators across 25+ networks. Our infrastructure is under advanced monitoring with alerts and 24/7 technical support making it the best choice for institutional investors.<hr>Web: <a href="https://p2p.org/?ref=p2p.org">p2p.org</a>Stake MINA with us: <a href="https://p2p.org/mina?ref=p2p.org">p2p.org/mina</a>Twitter: <a href="https://twitter.com/P2Pvalidator?ref=p2p.org">@p2pvalidator</a>Telegram: <a href="https://t.me/P2Pstaking?ref=p2p.org">t.me/P2Pstaking</a>

Alex Bondar

from p2p validator

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