Staking Explained

“Staking” refers to the act of supporting the blockchain by validating transactions on your computer (referred to as a “staking node”). In exchange for this work, the network rewards you with its cryptocurrency coins.

Specifically, Particl’s PPoS staking protocol allows users to securely and transparently vote on various issues and proposals using the power of blockchain technology. This process is called on-chain governance and is used to govern the Particl DAO.

Blockchain Consensus Mechanisms

What’s a consensus mechanism?

To guarantee the integrity of the blockchain, staking nodes connected to the network process all of the transactions happening on Particl. They then compare the processed data with each other and only validate transactions when the information is identical across a majority of the other nodes. This prevents fraud and ensures that all blockchain nodes host the same copy of the ledger.

If enough staking nodes cannot confirm the data of a transaction on the network, the transaction is collectively rejected. This mechanism is what is generally referred to as a consensus mechanism.

Staking vs. mining

Just like Bitcoin mining (proof-of-work), staking (proof-of-stake) is a consensus mechanism. They are both protocols that ensure the integrity of blockchains by validating transactions and paying out block rewards to those doing the work.

Unlike mining, staking doesn’t require any special hardware (i.e., GPU) to verify transactions. Instead of providing electricity-intensive work, stakers are required to deposit a number of coins (as collateral for being good actors) on the network on which they’ll earn interest in dividend-like payments.

Advantages of staking compared to mining

  • Rewards stakers with auto-compounding passive income

  • No expensive hardware required

  • Carbon neutral and eco-friendly protocol

  • Very little technical knowledge required

  • Better accessibility and a much easier setup process

  • Makes community governance accessible to any user of a network

Particl Proof-of-Stake (PPoS)

PPoS Quick Facts (Click Here)

  • The current yearly staking interest rate for stakers is 7%

  • The current emission rate of PART is ~1.72 PART per block.

  • Staking interest is paid in regular dividend-like payments.

  • All fees generated by the Particl applications are redistributed to stakers as part of the usual block rewards.

  • Industry-leading staking security.

  • Adjustable level of privacy when receiving rewards is available.

  • No minimum number of PART coins is required to start receiving staking rewards.

  • Cold staking “pools” allow you to team up with other stakers to receive more frequent rewards.

  • Particl’s community governance is powered by PPoS (on-chain voting).

To support its network and verify transactions, Particl uses Particl Proof-of-Stake (PPoS), a unique Proof-of-Stake consensus mechanism designed by the Particl team. Unlike Bitcoin’s consensus mechanism, called Proof-of-Work, PPoS makes the entire process of verifying transactions digital. It also eliminates the need to purchase and maintain expensive and energy-hungry hardware.

When a staker’s node finds a block and validates the transactions it contains, it receives a staking reward. The current yearly staking interest rate on Particl ranges from a minimum of 3.5% to approximately 7%. This staking interest rate is calculated based on the percentage of the total supply being staked by all the users.

While the Proof-of-Stake consensus mechanism isn’t particularly new, Particl has been pioneering the technology during the past few years by making it much more flexible, secure, and private. Indeed, PPoS is packed with several leading-edge features that let you get all the benefits of Proof-of-Stake, but without any of its typical security and convenience concessions.


Did you know that Particl invented and deployed the first-ever “cold staking” protocol in 2017? Cold staking allows you to stake funds stored offline (cold storage) with an extreme level of security and flexibility.

Earn Passive Income

Just by keeping your Particl Desktop client connected to the internet, you automatically earn a yearly interest rate of 3.5% to 7% on the total number of PART coins you hold in your public balance. In other words, the more PART coins you own, the more PART coins you earn. Simple enough, right?

What’s a staking reward?

A staking reward is defined as any number of PART coins received from the Particl blockchain in exchange for securing the network. These rewards are proportionally paid to stakers in exchange for their contribution. This process is entirely automatic and happens in the background without you requiring to do any manual task.

How much can I earn?

On Particl, a staking reward is funded by two sources; the base reward (the number of PART generated by the blockchain at every block) and the fees paid by Particl users when interacting with the platform and its privacy-first dApps.

Base reward

As a general rule of thumb, you can earn 3.5% to 7% of the PART coins you hold in your public balance after a full year of staking without pause. However, it is impossible to know exactly how much you’d make in a year, given that the actual interest you receive depends on a few variable factors.

If you’re staking 24/7, you are guaranteed to earn at least 3.5% more coins than you hold in your public balance per year. But that’s only true if the entirety of the PART supply is actively staking. As you can imagine, this simply cannot happen.

Historically, only 35% to 60% of the PART coins in circulation are ever staked at any given time, which means staking rewards get redistributed among a smaller pool of stakers.

This smaller pool of stakers receives staking rewards more often because they will find blocks more often than if every single Particl user was staking. This makes the actual yearly staking interest rate more profitable than the guaranteed minimum of 3.5%.

Platform fees

More people using the Particl ecosystem means more profitable staking rewards. That’s because staking rewards also contain fees paid by users interacting with the Particl ecosystem. These fees come from a few different sources.

Marketplace-related fees: The Particl Marketplace requires a small listing fee to be paid by vendors when they list items or services for sale. That’s how the marketplace, which has no central authority, prevents spam. Other features, such as promoting one’s market into the public Market Browser, also incur fees paid to the network and redirected to stakers.

PART transaction fees: When sending PART coins to someone else or into a smart contract, a small transaction fee needs to be paid to the network. This fee is usually just a few cents, or even less, but it’s counter-productive enough to fight off spam on the blockchain. This is the same type of fee charged by Bitcoin or Ethereum for making any transaction.

Staking Options

PPoS is a modern and flexible Proof-of-Stake consensus mechanism. Its most unique and groundbreaking feature is the ability to delegate your coin’s staking power to a separate staking node that contains no coin. That’s what’s called “cold staking”.

Not only does cold staking provide you with the most secure staking solution available anywhere, but it also unlocks a ton of ways you can stake your PART coins, each with its own benefits and considerations.

Regular staking


  • Can be activated effortlessly.

  • Activated by default on clients not protected by a password.

  • Allows you to participate in Particl’s community governance by voting on proposals.


  • Your Particl Desktop password is stored in your computer’s memory.

  • You need to keep your computer online 24/7.

Arguably the easiest way to start staking is to keep your Particl Desktop client open. This requires you to unlock your wallet for staking only, which means your Particl Desktop client will act as a staking node and be able to verify transactions. This simple way of staking doesn’t use Particl’s novel ability to delegate your coin’s staking power to another node, and for this reason, is more limited than its cold staking counterpart.

Regular staking requires a constant and active network connection, which means you need to keep your computer online and your Particl Desktop client open at all times. It also cannot be effectively implemented on external devices due to the constant network requirement, potential battery drainage, and security vulnerabilities.

Cold staking


  • Very secure staking option.

  • The wallet that holds your coins doesn’t need to be online at any time.

  • Extremely flexible, it allows many other staking options.


  • You need to set up and maintain an external staking node and keep it online 24/7. This is one reason many people instead opt to use a VM hosted externally for this purpose.

  • The setup process is more technically advanced.

Cold staking is the better, more modern way to stake. This proof-of-stake improvement was released by Particl contributors in 2017 and is still, to this day, the most secure way to stake coins. Cold staking lets you delegate your coin’s staking power to an external staking node without having to keep the Particl wallet that holds your coins online.

That means you can store your coins in a cold wallet, a hardware device (i.e., a Ledger Nano device), your phone, or even a just simple piece of paper with the mnemonic written on it. You’ll still be able to earn staking rewards on those coins even though they are entirely offline. Indeed, cold staking grants you the maximum amount of security and adds a ton of flexibility not possible without it.

To learn how to set up an external cold staking node, follow the instructions in the Staking Guide available here on the Particl Academy.

Staking pools


  • Very easy to join. Takes less than a minute.

  • Offers the same level of staking security as cold staking because it entirely relies on it.

  • The wallet containing your coins doesn’t need to be online at any time.

  • Pays more frequent staking rewards, but they are smaller in size. You earn the same number of coins (minus pool fees) as you would with any other staking option. The only difference is the size of the payouts and how often you receive them.

  • Doesn’t require you to deploy and maintain an external staking node.


  • You need to pay a staking pool fee (a percentage of your staking revenue).

  • By delegating your staking power to a pool, you also delegate your voting power. A pool operator can vote on proposals using your coins, so make sure that you know the voting intentions of any pool you join.

You can team up with other stakers by joining a staking pool and combining your staking power to earn more frequent but smaller rewards. Whenever the pool validates a block with the full staking power of all its stakers, it receives a staking reward.

All of the staking rewards collected by the pool are then proportionally redistributed to its members according to their contribution to the pool’s staking power. In other words, if you stake in a staking pool and own 10% of all its staking power, then you will receive 10% of all its staking revenue minus the pool fee.

Staking pools are safe to use as the pool operator cannot run away with any of the funds it stakes. That’s because it entirely relies on cold staking. You delegate your staking power to a pool instead of an external node you control, but the security benefits are the same.

They are ideal if you hold a small number of PART coins or don’t want to manage an external staking node yourself.

For a complete list of available staking pools on the Particl network, visit Particl Academy’s Staking Guide.


Instead of an external staking node, you can also use a staking pool to enable mobile and hardware staking.

Hardware Staking


  • A hardware device may provide an additional level of security for your funds

  • The wallet containing your coins doesn’t need to be online at any time.


  • You need to set up a staking node and keep it online 24/7 unless you use a staking pool instead.

  • The setup process is the most complicated of all staking options on Particl.

For a potentially even more secure staking solution, you can stake PART coins stored on a hardware device such as the Ledger Nano S or the Trezor. These hardware devices are secure cryptocurrency wallets that require direct physical access to authorize any transaction. They protect you against viruses, infected computers, compromised internet connections, and more.

Since PPoS is a highly flexible protocol, it doesn’t penalize you for going “security first”. By leveraging cold staking, it lets you enable staking and earn interest in dividend-like payments on PART coins even when stored in hardware wallets.

To learn how to set up hardware staking, jump to the Staking Guide right away!

Mobile staking


  • Very secure and convenient staking option.

  • The mobile wallet containing your coins doesn’t need to maintain an active connection to the Particl network.

  • Relatively simple setup process.


  • You need to set up a staking node and keep it online 24/7 unless you use a staking pool instead.

As its name implies, mobile staking lets you earn a staking interest on the PART coins you hold on your phone (i.e., Particl Copay, Particl Electrum). This functionality uses cold staking to delegate your coin’s staking power to another node.

Because your phone isn’t doing the actual staking work (that’s the role of the external staking node), it doesn’t lead to battery drainage issues and doesn’t require you to keep your phone powered on. It also won’t bust your mobile data as it uses no extra network resources.

It is a convenient and user-friendly staking solution that lets you carry your coins wherever you go and still earn staking interest on them.

Staking Privacy

By default, Particl Proof-of-Stake distributes its staking rewards using public transactions. This process is completely transparent and auditable. This is a huge boost in trust and security for the network as any potential malfunction or coin-generating exploit could be instantly detected right at the source.

However, it also means anyone can trace staking rewards and look right into your wallet. Not something you would want to happen with your bank account, that’s for sure.

That’s why Particl allows you to control your level of staking privacy using Partyman; Particl’s cold staking application. To do so, you need to indicate to the network that you’d like to receive your staking rewards in another type of balance other than your public balance. Check out the Staking Guide to see how to do it.


PPoS is at the core of Particl’s decentralized governance. You can vote on various community proposals using your staking power as voting power. When you register your voting preferences during a voting round, you cast a vote every time you stake a block.

To learn more about Particl’s community governance model, head over to the Community Governance in-depth guide.

See also