MonetaryUnit is a decentralised digital-currency. This means its security is enhanced by allowing a dispersed network of 'servers', owned by the general public, to constantly verify and check that transactions are legitimate.
The advantage of a decentralised network means that if one of these servers becomes compromised it will not impact the integrity of the network. To have a negative impact, someone would need to compromise over 51% of the network; however because all the servers sit with people who have no connection to each other, the probability of this is as close to zero as possible.
Proof of Stake
Anyone can set up a server that helps check and verify transactions. You can do it inside any of the MonetaryUnit non-mobile wallets, or buy a dedicated system (for between $20 - $100) - more on that below.
You may have heard of 'mining' if you have some experience with digital currencies. Mining is an expensive and resource-heavy process to validate transactions; MonetaryUnit does not use mining.
Instead, the MonetaryUnit network operates in a manner called 'Proof of Stake'.
Any server which is set up to verify and check transactions is considered to be 'Staking'. This is because, like a lottery, you are automatically entered/staked into a 'prize draw' - those Staking will be randomly rewarded with MUE.
Rewards (earning interest)
Every 40 seconds MonetaryUnit generates ('mints') 40 MUE. This is new MUE that didn't exist before.
This new MUE is divided up as follows:
18 MUE (45%) = Rewarded to those Staking
18 MUE (45%) = Rewarded to MasterNodes
4 MUE (5%) = Issued to MonetaryUnit budgets.
If you have a system setup to Stake MUE, every 40 seconds you will automatically be eligible to be rewarded. This does not mean you will receive MUE every 40 seconds however.
It is expected that someone staking over the course of a year will earn between 20%-30% on the value of their MUE. For example if you were Staking 1,000 MUE, 1 year later you would have an additional 200-300 MUE (for free) in rewards. The more MUE you stake, the more you'll earn.
Staking MUE is a fantastic way to have your digital money earn interest whilst you are not spending it. You can add and remove money at any-time from a staking wallet.
Ready to Stake?
Learn how to setup a staking wallet.