Anyone can set up a node and become a validator by staking LTO, helping decentralize and secure the network, while receiving blockchain rewards. If you are not tech-savvy, you can just lease your mainnet LTO to other nodes and share network rewards with them. LTO Network staking guide ahead!
LTO Network has a hybrid architecture, where its bottom layer 1 – the permissionless public blockchain – is similar to Bitcoin/Ethereum. But instead of Proof of Work, LTO Network is based on a variation of a Proof of Stake algorithm.
Know-How on Leased Proof of Stake
Node rewards are transaction fees of the network and correspond with the ratio of your staked amount over the total staked amount. Check network stats.
- There is no network inflation, mining rewards are the transaction fees paid by network users. They can be coming from normal transfers, but around 99% of them are anchoring transactions resulting from clients and integrators using LTO Network engines.
- While 1,000 LTO is the minimum requirement for running a node, it will most likely not yield frequent rewards. Check the calculator to see what you can expect in general to get while staking LTO.
- Layer 1 public blockchain based on the NG protocol. This means the rewards are 40%-60% split between the miners of micro blocks and a key block. Don’t be confused if you see your rewards being either 0.10 LTO or 0.15 LTO, NG is the reason for that.
- LPoS somewhat leads to the centralization of a network, which is why we will be switching our own model: Leased Proof of Importance. The reward split would then account for actual network usage.
- The Bridge Troll fee, which is 40 LTO, gets split as 16 LTO – 24 LTO. This adds some more rewards for the nodes.
Staking is only on mainnet. Swap your ERC-20 or BEP-2 to mainnet via the bridge.
Run a node yourself and stake
The node setup fits in one tweet, it’s super simple to set up!
1. git clone github.com/ltonetwork/lto-public-node
2. vim docker-compose.yml
3. docker-compose up
Done! Ask more in the Tech Chat.
Check Developer Docs for the full info on node installation guides. It includes the system requirements info, setting up a node in a cloud environment, and some security advice for the tech-savvy community members.
Lease LTO to others and split rewards
With the traditional Proof of Stake algorithm, it is important to have a big wallet: only people with a certain amount of tokens can run a node and forge blocks on the blockchain. With Leased Proof of Stake, token holders can lease their wallet balance to someone who is running a node, without having to run anything themselves.
Most node operators will share a percentage of their node rewards with their leasers. The higher the leased amount of a node is, the more chance it has in being eligible to forge the new block. If the block has transactions, the mining node will earn the fees from those transactions.
When leasing, you are not transferring your tokens to someone else. Your tokens stay in your wallet. So you cannot lose your LTO this way, it’s SAFU.
- Create a mainnet wallet [make sure to save your seed phrase]
- Swap ERC-20 LTO to mainnet LTO [beware of the Bridge Troll]
- Read below about different leasing communities to choose from
- Press one button lease… and you are set up!
Every node is like its own miniature community, it’s awesome!