About the Staking category

This is the hub for learning how to delegate and stake with VideoCoin.

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VideoCoin has made clear that the responsibility for payments to Delegators fall on the Worker. The percentage has been arbitrarily set at 20% by VideoCoin but there is no enforcement mechanism. A few questions arise from the facts of these circumstances:

  1. How does the network pay Workers in Fiat? Do workers need to establish a Public Mint account in order to receive payment for services rendered, and if so, what is the procedure for doing this? If not, how do workers get compensated? Can you post a flow chart that shows payment flows in a fully functioning scenario?

  2. Delegators are bonded to Workers and delegated VID is added to Worker weights for algorithmic selection. Once the Worker is compensated, how does the Worker transfer payment to the Delegator?

  3. There are tax implications to receiving 100% of the compensation from work to the Worker assuming the algorithm doesn’t take care of this on its own (which VideoCoin states it does not). First, the worker must claim the entire amount as income. Second, the Worker, assuming the Delegators are in a US jurisdiction, must 1099 the Delegators to issue un-taxed payments to them. If the Delegators are outside US jurisdiction this gets even more complex for reporting and KYC/AML scenarios could arise (imagine a case where Iran buys a bunch of VID and delegates it to large data centers and then receive funds from workers extraneously). All of the aforementioned come with overhead / processing fees for accounting purposes, which is a non-negligible cost. Who swallows this cost, the Worker or the Delegator(s)?

  4. How do Delegators know the exact amount due to them after a period of time delegating to Workers and what is they payment frequency that is expected? If Public Mint is used there should be a fee per transaction rate structure, therefore batched payments would be more reasonable. Is there a standard for this yet?

  5. Who bears the responsibility for tracking the weighted average work for payment to Delegators? For example, if a worker has 1 Delegator at the beginning of the month and then adds 2 Delegators thereafter half-way through the month how is the payment apportionment calculated (assuming all 3 Delegators provide the same amount)?

  6. How do Workers manage machine downtime for software upgrades if their bonded to Delegators, what is the procedure to avoid getting slashed? When the maintenance is complete how does the Worker re-enter the pool without having to wait another 10 days? This impacts the anticipated Capability Factor of a deployment if the wait times for going back to work are long. Imagine have to do maintenance each quarter (that’s 40 days unemployed or 11% of potential revenues lost!)