pNode Staking Mechanism

Hey pNode owner,

You’ve probably wondered about the difference between hosting a virtual node and buying the little plug and play gadget Node. It’s not just about how tech savvy/ tech comfortable you are, they also differ in funding mechanism.

With vNode (virtual node) after you get your virtual machine online, you will need to buy 1750 PRV to stake and become a validator. You will earn 100% of the block rewards and the transaction fees. This is called regular staking.

With pNode, it is slightly different. You can choose to buy 1750 PRV and stake on your own, or you can opt for funded staking. Below are the detailed explanations.

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Regular Staking vs Funded Staking

The role of an Incognito Validator is two-fold. The Validator is simultaneously the Funder and the Worker. The Funder stakes 1750 PRV into a node. The Worker validates private transactions on behalf of the Funder.

Typically, the Funder and the Worker split their earnings. The split ratio is often agreed upon and settled off-chain.

There are two different staking mechanisms at play here: regular staking and funded staking.

Regular Staking Funded Staking
The Funder Alice Alice
The Worker Alice Bob
The Split Alice (100%) Alice (65%), Bob (35%)

Regular Staking

With regular staking, the Funder and the Worker are the same person. The Funder simply stakes 1750 PRV and carries out the work herself. In this case, the Funder doesn’t have to split her earnings with anyone else.
See also: How to use 1750 PRV to stake on pNode

Funded Staking

With funded staking, the Funder and the Worker are two different parties.

For Node, the default setup is as follows:

  • The Funder is currently the core team. In the future, the Funder could be any user on the network interested in funding Nodes and sharing profit.

  • The Worker is the Node device.

  • The initial revenue share ratio is 65/35. The core team keeps 65%, and the Node owner keeps 35%. This revenue share ratio is subject to change at any time.

With this setup, Node owners do not need to own PRV to begin mining. They just need to plug in their Node. The core team handles the staking. This is believed to be the best setup for non-crypto or less technical users.

At any time, Node owners can cancel funded staking with the core team, start regular staking with their own PRV, and reap 100% of the rewards. This cancel feature is being built at the moment and it will go live around March 2020.

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@annie Excellent explanation, thank you for finally breaking it down for us. When the feature is added to allow owners to regular stake their pnode, will it be automatic or will we have to go through incognito manually?

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@JG20 you can just buy PRV from pDEX and stake directly from the app, no incognito team involved :slight_smile:

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Per Staking a pNode with your own PRV instead of funded PRV it looks like you can’t stake pNodes with our own PRV yet. Is that not the case?

That is correct. It is not possible yet. Estimated for the end of March, but that is not set in stone yet.

Would it be possible to let pNode owners reinvest their epoch earnings so that it slowly builds a full stake? As they earn and pay down the 1750 they will keep proportionally more of the epoch earnings. Many people are hesitant to pay $299 and then pay about $850 more. I think node sales would increase dramatically if buyers knew they were building a full stake with their earnings.

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The dev work has begun!


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Hi Silvercap, we will think about this carefully. Let’s wait for the “Regular Staking for pNode” first.

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It will take for weeks, Mike :grin:

Hi everyone, you can use your own 1750 PRV to stake for the pNode from today.
Also see: You have an app update: 3.6.3.2

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Great step forward allowing node owners to self fund!

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So say you have pNode that was using Funded Staking, and when regular staking was made available you got super excited and unstaked it… but you’re not actually ready to fund it yourself… is it possible to get help staking my pNode again with Funded Staking?

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Yes, you can. Contact one of the admins, supply node id.

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@Jamie, is this still the way returning to funded staking works for pnodes? Initiate by reaching out to an admin with the node ID?

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Yes. People seriously should not unstake their Node (fka pNode) just for fun, just to see how it works. It will only make you lose earnings for the time you are waiting for your Node to be manually restaked.

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Is it more beneficial to add more than the 1750 PRV to my pNode Stake, or should I put the overages into the regular staking fund on my homescreen?

Benefits to adding 2500 PRV to my pNode stake, for example? Or should I keep it at the 1750 as more won’t benefit me?

I don’t believe so I heard @andrey say on a podcast that it won’t benefit you to stake more than 1750. I have my excess prv in the staking option on the home screen.

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Great, thanks!

where can one find this podcast? thanks!