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          Get Peers Message Binary Format
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          Get Signatures Message Binary Format
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          Handshake Message Binary Format
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          Peers Message Binary Format
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          Score Message Binary Format
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          Signatures Message Binary Format
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          Transaction Message Message Binary Format
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        Order Binary Format
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          Burn Transaction Binary Format
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          Create Alias Transaction Binary Format
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          Data Transaction Binary Format
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          Exchange Transaction Binary Format
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          Genesis Transaction Binary Format
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          Invoke Script Transaction Binary Format
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          Issue Transaction Binary Format
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          Lease Cancel Transaction Binary Format
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          Lease Transaction Binary Format
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          Mass Transfer Transaction Binary Format
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          Reissue Transaction Binary Format
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          Set Asset Script Transaction Binary Format
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          Set Script Transaction Binary Format
        • Sponsor Fee Transaction Binary Format
          Sponsor Fee Transaction Binary Format
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          Transfer Transaction Binary Format
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          Update Asset Info Transaction Binary Format
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          Ethereum Transaction Binary Format
        Transaction Binary Format
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        Transaction Proof Binary Format
      Binary Format
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      Validation Rules
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      On this page
        • Leasing benefits for the node owner
        • Leasing benefits for the token holder
        • LPoS transactions
      waves_logo Docs

          # Leased Proof of Stake

          Leased Proof of Stake (LPoS) is an enhanced type of proof of stake consensus algorithm by which the Waves blockchain network aims to achieve the distributed consensus to secure the network.

          # Leasing benefits for the node owner

          Nodes can use the leased tokens to generate blocks and get the mining reward. For that purpose, the generating balance of a node must be at least 1000 WAVES.

          In the node configuration file, Use the enable parameter to start generating blocks on your node. By default, it’s enabled, but if you disable it your node won’t generate blocks.

          # Leasing benefits for the token holder

          LPoS allows the token holders to lease their tokens to the Waves nodes and earn a percentage of the payout as a reward.

          By using LPoS, leasers will be able to participate in the process of generating new blocks because the larger the amount that is leased to a Waves node, the higher the chances for that node to be selected to generate the next block. If that node is selected, then the leaser will receive a reward.

          When the user starts leasing the tokens, those leased tokens are locked and remained in the same address with the full control of their owner (They are not transferred to the node, they just remain unspendable until the lease is canceled by the leaser).

          The only thing to consider when leasing is to choose the right node operator, as the operator's node may work with different efficiency and send back different percentages as rewards.

          Fair Proof of Stake is used to select a miner to generate the next block, See FPoS paper for more technical details.

          # Rewards

          • The node owner may send to leaser a part of rewards according to his conditions.
          • The more transactions that are made on the network, the more rewards leasers get.
          • These rewards are in WAVES.

          # LPoS transactions

          To start leasing, the token holder needs to create a lease transaction and specify the recipient address (node address) along with the amount of WAVES to lease.

          There are two types of transactions which are used in the LPoS:

          1. Lease transaction to activate the leasing process.
          2. Lease cancel transaction to deactivate the leasing process.

          There are the following options to create the transaction:

          • In Waves.Exchange app developed by the third-party team from the community. See the WAVES Staking article in Waves.Exchange documentation.
          • Using client libraries. See also the Creating and broadcasting transactions to the blockchain article.
          Block Reward
          Block
          Block Reward
          Block