All blockchain communities that are decentralized have some sort of rewards system for people who help secure their network. In some systems like Bitcoin, these rewards are given to ‘Miners’, a select subgroup of people who secure the Bitcoin network. In PIVX, anyone who has PIV can help secure the network and is able to receive rewards for their efforts!
As of today there are three distinct groups who all help out PIVX in different ways and are all receiving rewards for those efforts.
How to Get Rewards
PIVX operates using a Proof of Stake security mechanism which means that in order to help secure the network, you must prove you hold PIV. The first two methods below are two ways you can use your PIV to earn interest on what you already have. If you don’t have PIV, but you want to earn some, the third method allows your to earn by helping the community.
Method 1 – Running a Masternode
Running a Masternode, which requires 10,000 PIV.
(Note: Requires some technical know-how)
Method 2 – Stake Your PIV
Staking your PIVX, which has no required minimum, but requires you to keep your wallet active.
Method 3 – Helping Out
There are also opportunities available all the time to help out with community projects funded by PIVX. If you help these projects along, you become eligible to earn PIV for your time and work. These opportunities include development, marketing, customer support, and more. If you’d like to help out with these activities, please reach out to us on Slack or in the Forums!
How Much PIV is Created, and How is it Distributed?
Every 60 seconds, 5 PIV are created (Also sometimes called minting). These PIV are then automatically divided into three pieces. A fixed 10% (0.5 PIV) goes into a pool that is used to fund the growth of PIVX. (Method 3) The Masternodes vote on which projects that 10% should be spent on and then the community members who did the project claim the PIV. The other 90% (4.5 PIV) gets divided between the Masternodes and the Stakers. (Methods 1 & 2) The split between Masternodes and Stakers is based on a “Seesaw Algorithm.” This algorithm constantly adjusts the amount of rewards that go to the two groups based on the number of Stakers and Masternodes at a given time. The current Seesaw Algorithm incentivizes the balance so that Masternodes make slightly more than Stakers to cover their higher operating costs. To learn more about the Seesaw Algorithm, click here.
How Much PIV Should I Actually Expect to Make?
The reward system by design has a lot of randomness built into it. This is done for security purposes, but it can make calculations a bit tricky. With that said, a Masternode requires 10,000 PIV, and each Masternode should be getting a reward approximately every 1-2 days. For staking, a very general rule of thumb is that for every 1,000 PIV (slightly over that in fact), you can expect a staking reward once every 30 days, but remember that this is a completely randomized process! You may go for 15 days without a reward and then get two in one day. It’s completely possible!
Based on estimates for May 2017 through April 2018, average yearly returns for staking are approximately 4.8%. For up to date rewards please check out the PIVX Rewards Calculator.
Want More Information?
Please join our thriving Slack community and ask any question you would like! Get your invite at PIVX.Slack.com.