An Introduction to Staking
If you have spare computational power you can earn income by being an Edge Host.
Edge nodes earn $XE coins in return for this, and these can be used to purchase services from the network, or exchanged for $EDGE for trading in the wider crypto marketplace.
Stakes also form an important part of the tokenomics of the platform, locking value in the network and reducing overall circulating supply.
Proof of Stake (POS) in the Edge network is designed to incentivise system stability and security while ensuring a high level of decentralisation.
Staking levels are set based on the capacity requirements in the network in any given period. As the Edge Network is a marketplace, it is important to ensure that node contributions match customer demand, and that these requirements remain balanced.
In the event that a Node does not meet minimum availability targets, penalties will be applied against their POS. You can think of this as an uptime guarantee. Uptime is more important for Stargates than for Gateways and for Gateways than for Hosts, and the availability requirements are set accordingly. Stargates must meet a 99.9999% availability, whereas for Hosts availability is set at 20%. Availability can be low for Hosts because of how the system is architected: it is designed to allow for a high level of disconnect and reconnect at this level.
As the requirements for Nodes grows, the proof of stake required at each level in the network will be reduced. This metric is a balance of supply, demand and network availability.