FAQ

Although the term interest has become established in linguistic usage, the term "Proof of Stake" (PoS) is used to refer to the interest paid on cryptocurrencies. Staking in this context is not a meritless increase of money, but a reward for the users of the eMark network and their support to maintain this network.

"Proof of Work" blockchains are secured by consuming a scarce and expensive resource: Electricity.

PoS replaces this expensive security mechanism with the use of another scarce resource: time.

Through the mechanism of time-based regulation, any computer with an Internet connection, can contribute to securing the eMark blockchain.

DEM owners (stakeholders) make a significant impact on the network, producing new blocks and thus securing the blockchain.

Stakeholders thus also determine the future of eMark by voting on the protocol.

All that is required is to own eMark and install the desired version of the eMark client. An algorithm in the protocol then controls the creation of one's own blocks on the blockchain. Each self-generated block brings the stakeholder a vote and a reward/interest in the form of new DEM.

A blockchain whose protocol and rules are determined directly by the users.

Thus, the Deutsche elektronische Mark is decentralized and democratic, every person worldwide can participate in securing it.

Each user, ONLY by using a core wallet (the eMark-qt), supports the entire eMark network by (since the software runs in the background) forwarding blocks and confirming transactions. A so-called "light wallet" (e.g. Android or iOS), which has not downloaded the complete blockchain and also cannot perform the complex calculations to confirm transactions, does not provide such support. Thus, only users who use the eMark-qt wallet can generate PoS blocks - i.e. "interest".

Every single transfer represents, metaphorically speaking, a "coin" for the eMark network. Thus, there can be coins with the value of 0.0001 DEM, 10,000 DEM or even 236.9453 DEM. Over time, several coins of different ages accumulate on an eMark address, depending on how long ago the last transaction took place. For example, if you pay 23 DEM to someone with such a 108 DEM coin, the "change" is again a coin of 85 DEM (108 DEM minus 23 DEM). With each transfer the coin age is set to 0. Thus, as in the example, the 23 days old 108 DEM coin, after paying 23 DEM has become a 85 DEM coin, which is now 0 days old. These coins are also called "coin blocks".

To do this, the following requirements must be met:

1. The eMark-qt wallet must be synchronized and unlocked.
2. Coin blocks must be present whose coin age is older than 30 days.

When these conditions are met, the coin blocks in question are "clocked" (interest is paid). This is done automatically. The larger the coin blocks and the older they are, the greater their "weight", i.e. larger and old coin blocks are clocked faster, with very small blocks it can also take several weeks until they are clocked and you get your "interest" credited.

When a coin block has been clocked, the coin age is reset and you can clock again after 30 days, provided that this coin block has not been moved in the blockchain in the meantime.

Tip: In the eMark-qt wallet there is a setting "Coin Control", if this is activated, you can use this function under 'Send'.

This allows you to view the coin blocks and their age.

You receive 3.8% per year on your wallet balance. With an interest year of 365 calendar days, this corresponds to a monthly interest rate of approx. 0.32%.

The interest is added to the clocked coin block. If, for example, a coin block with 100 DEM is clocked exactly after 365 days, one receives a coin block in the amount of 103.8 DEM and a coin age of 0 days. You can dispose of this 103.8 DEM after 100 confirmations by the blockchain (approx. 2h).