Staking in XYO is a vote of confidence for the data provided by a given node. The party staking the node is vouching that it has good data (verifiable and unaltered) and is trusted on the network. The party puts XYO tokens on the node, which offers a reward for providing good data and using good data.
IMPORTANT: You will never have to send your tokens to another person in order to stake.
If someone asks you to do this, it is most likely a scammer.
- How do I stake a node?
You stake a node by using the Matrix and selecting the Diviner node that you will like to stake. We will have an update to the app to use for staking, which we are really excited about!
- What node should I stake?
A node that has a proven track record of delivering good data with healthy staking behind it. For now, there is a trusted XY diviner on the Matrix that you can stake.
-How do I know if a node is providing accurate heuristics?
By comparing it to other nodes that are in the same relative location.
If there are seven nodes that are reporting themselves at the same latitude and longitude or very close (perhaps within 100 ft) and one reports itself with a temperature of 76˚, while the rest report themselves with a temperature of 63˚, it’s a sure bet that the temperature in that area is 63˚. Bound witnessing is like a consensus, and with consensus, we can be sure that we are getting accurate heuristics.
- What are the pros/cons in putting stake on a node of my own versus one that is someone else’s?
The pro of staking your own node is that you can trust the data and heuristics from your node with great confidence.
The con of staking only your own node is that over time, you may be limiting possible rewards you could get from the network, there are a lot of nodes out there!
The pro of staking other nodes is that you will be contributing to the consensus necessary to make proof of origin viable, more importantly, you expand the opportunity for rewards.
The con is that you are taking a risk in another node, but the XYO network the proof of origin should be able to reduce this risk by assuring that actively staked nodes in the network are a safe bet for your stake.
- How do we know when a node is acting good or bad? Who and what decides this?
The main proof of a node acting good or bad is if it is consistently acting against the majority of nodes in the network. Like in the question about accurate heuristics, if a node is consistently presenting contradictory data or heuristics in comparison to other nodes in the same area, it could be assumed that the node is acting badly.
Ultimately the network as a whole decides who is good and bad through staking.
Staking comes with not only rewards, it also comes with penalties which include loss of some or all of your stake.
- When can I withdraw my XYO? How does staking affect the withdrawal of XYO?
Currently, withdraw of staked XYO would come with a cool down period, which is five days (but the time varies depending on how you staked), but if you lock your stake for a certain amount of time, say one year then your stake is locked and you won’t be able to withdraw for that year and then the cool down period.
- What are the benefits of staking? To me? To the network?
The benefits of staking are contributing to the health of the network and its ability to address many use cases and do so with the highest possible security. You also get rewarded with XYO tokens for good staking.
The big picture benefit for you is that with staking you get to full sovereignty over your data.
If the network is healthy, trustless, and actively staked, that means that nodes’ data sovereignty has value without a centralized authority determining that value and using it.
This larger picture allows you and us to address the many issues involving the use of location data and its accompanying heuristics.