Cardano Announces Details of Token Pay
Cardano developers announced the details of the PoS system.
With the new consensus of the Cardano (ADA) network to Ouoroboros Genesis, it will make the staking mechanism work for everyone. Cardano developers made statements about how the system will work the other day.
How Staking Will Work?
Staking Blockchain on the next block to determine who will be created by the block. The more the token has been shared on a network, the better the chance of being chosen (or the pool). Those who share their Tokens receive some reward for contributing to the network. Cardano developer IOHK description as follows:
The Proof of Stake (PoS) Blockchain protocol is executed by the shareholders. This way, less energy is used than PoW system.
The user selected to create the next block is called a slot leader. The slot leader must always be online. Since it is not always practical to share online, users who want to share their tokens can lend their tokens to pools. Shareholders have increased the chances of building blocks as having great power in total. The block prize is shared among the members of the supporting pool of successful slot leaders. In addition, the owner of the share pool receives an extra prize.
Cardano has announced that there will be no minimum ADA limit to share. But you’ll have to have a certain amount of ADA token to own a pool. Another issue is that token’s token will not be available in any stock exchange wallet. Nevertheless, stock market wallets can also be added to share property.
Users who share their tokens cannot use or sell their tokens during the period they share. Shareholders can withdraw their tokens at any time, and they are never under the control of someone else.
The pool will be reduced when the pools grow too large or cover a certain part of the network to maintain competition between pools and to ensure decentralization. Thus, token owners will be able to choose new pools or invest in creating their own pools. This system will also make room for new investors to join the system.
What Users Should Do
It will be quite easy to have a share. Users who want to share their tokens will be able to perform this transaction from Daedalus or Yoroi wallets and win awards as ADA. It is not yet clear when PoS will be used. Developers test the test network is continuing. The system will probably start working in 2019.