ELROND - Launch of phase 3 of staking

"Towards full decentralization of the Elrond network"

In the coming days, many changes will be made to the Elrond network. Its changes are aimed at moving towards a complete decentralization of the network.

The next few lines are intended to explain the mechanisms and issues that will arise during this major technical evolution.

The changes that will be applied are relatively complex. We have tried to summarize as much as possible so that each of you can understand how the network works and the opportunities that present themselves to you as an investor.

Before going any further, we invite all newcomers to learn about the objectives of the Elrond project by watching the video made by our CEO Owen Simonin (aka Hasheur).

View the video


The objectives of this phase 3

Until now, only a few operators were allowed to operate nodes on the Elrond network and staking places were limited. This first phase was essential to allow the network to develop and stabilize over time. Today, the Elrond network is ready to open a new phase of growth based on decentralization. In concrete terms, this means that more eGLD tokens can be staked and new validators can participate in securing the network. This change will naturally lead to an increase in immobilized tokens and thus improve the security of the network.

"A secure environment will give more companies confidence to start building on Elrond, increasing the demand for eGLD, in a perpetual virtuous cycle."Lucian Mincu, CTO of Elrond

Here are the main changes that will kick in:

   • Ability to delegate to staking pools while retaining custody*
   • Staking pools will open on 26 March 2021
   • Increase in number of nodes: from 2169 to 3200
   • New nodes to be launched on April 5, 2021

In the next few paragraphs, we will go into detail about each of its points.

*Custody: refer to the paragraph "the concept of custody"


What is a staking pool?

Without going into technical details, a staking pool is an environment on which it is possible to place eGLD tokens in order to participate in the securing of the Elrond network and to obtain interest, the fruits of the work done for the network.

Any user can create his staking pool as long as he has at least 1250 eGLD. However, it is necessary to have at least 2500 eGLD on its pool to set up what one calls a node and thus to glean rewards. It is possible to set up several nodes on a single staking pool. A node consists of at least 2500 eGLD. Additional tokens are considered as a "top-up". This system is illustrated in a diagram in the paragraph "The reward system".


Is it more interesting to create your own pool or to delegate your tokens to an existing pool?

Beware, if everyone can technically create their own pool (provided they have at least 1250 eGLD), the installation and maintenance of the nodes requires certain skills, a ruthless rigor and especially time. Indeed, if a node malfunctions, the rewards are not distributed. In these conditions, it is up to you to make the choice between joining an existing pool or creating your own.


The Just Mining Pool

As a logical extension of our business, Just Mining will naturally open a staking pool to continue supporting the Elrond network in its development.

Any user will have the possibility to place his eGLD tokens on this pool against remuneration and by keeping the custody. The details of this remuneration are specified below.


The concept of custody

Keeping custody means that you keep the tokens on your wallet. You can use Just Mining's service without having to send us your tokens.


The reward system

This part may be the least obvious, pay attention to these lines to fully understand the reward mechanism.

Before the launch of phase 3, there were 2169 operational nodes on the Elrond network. As of the launch of Phase 3, an additional 1031 nodes will join the Elrond network.

It should be understood that the more operational nodes there are, the more secure and efficient the Elrond network will be. On the other hand, the more operational nodes there are, the less attractive the APR will be to the investor.

A node is composed of a minimum of 2500 eGLD, but it is possible to place an infinite number of tokens on a single node knowing that the network only distributes rewards up to 5000 eGLD per node. This subtlety is important, as it impacts the overall APR of the node. The additional tokens to the basic 2500 are called top-up. Here is a diagram representing this mechanism.



The evolution of the annual APR (annual percentage rate)

Logically, this influx of new nodes onto the network will affect the rewards associated with Elrond nodes.

Currently, the APR on masternodes is at 36%. This rate will tend to drop over time depending on the number of eGLD tokens tied up in the pools.

Here is a diagram representing a scenario in which there are 2169 nodes (current state before the launch of phase 3) and a second one in which there are 3200 nodes (maximum number on the network).



Just Mining's offer

Just Mining offers two ways to invest and grow your eGLD tokens. In both cases, all the technical operations (updates, nodes management,...) are managed by our teams on your behalf. You do not have to worry about these constraints.

1° I want to be an Elrond masternode or shared masternode holder (minimum 25 eGLD) Ideal for long-term investors.

This option is available if:
   • You already own eGLD tokens
   • You want to buy eGLD tokens with euros (€)

The features of this option :
   • You always get the best APR of the network
   • Minimum 25 eGLD
   • Available now*
   • 10 day unstaking period
   • Service fee : 16,5%
   • Access to the Just Mining management interface

*You can position yourself right away so you can reserve your spot but you won't start earning rewards until April 5.
**The service fee will be adjusted on April 5 based on the network's proposed APR so that the masternode package is the most optimal in terms of return on investment

Example 1:
Elon wants to invest in the Elrond project and earn interest on his investment. Thanks to the Just Mining service, Elon will have the opportunity to invest € and will receive eGLD tokens on his Just Mining customer area. His eGLD tokens will be placed in a masternode and will allow Elon to get interest in eGLD, credited directly to his Just Mining wallet.

Example 2:
Elon has 25 eGLD in his Binance account. He wants to place them in masternode to earn interest on his eGLDs. He can make a deposit request to Just Mining to send his eGLDs. This will deposit them into his Just Mining account and Elon will be able to earn interest on his tokens rather than letting them sleep on an exchange.

2° I want to place my eGLD tokens on the Just Mining pool.

This option is available if:
   • You already own eGLD tokens

The features of this option:
   • You retain custody of your eGLDs
   • Minimum 1 eGLD
   • Available from March 26th
   • 10 day unstaking period
   • Service fee : 16,5%

Although the APR in this second option is slightly less interesting, it has the advantage of allowing you to keep control of your tokens. Obviously, our technical teams will ensure that our pool users always benefit from an optimal APR.

Elon has eGLD tokens on his hardware wallet. Currently, his tokens are not earning him any interest. With two clicks, Elon can place his tokens on Just Mining's staking pool and earn interest in eGLD that will be credited directly to his personal wallet. In this system, Elon keeps custody of his tokens.

**The service fee will be adjusted on April 5 based on the network's proposed APR so that the masternode package is the most optimal in terms of return on investment


I already have an Elrond masternode on Just Mining, what change?

Your masternode will continue its activity as normal and rewards will still be credited.

As of April 5, fees will decrease from 20% to 16.5%.

Similarly, the APR, previously set at 36% may potentially decrease depending on the number of eGLDs placed on the new nodes.