4.2 Proof-of-Stake (PoS)

There are 2 types of users in Wicrypt network - hosts (internet providers) and users (customers). In order to be part of the network, hosts are required to acquire and stake a predefined amount of $WNT tokens.

This is intended at ensuring their commitment towards overall, high quality and security of Wicrypt as a product and eliminating any economical profit of acting against Wicrypt.

Hosts’ proof-of-stake deposit is treated as a specific form of collateral - in case of detecting malicious behaviors or exploits from their end, their $WNT deposits are being freezed (i.e. locked away without possibility of withdrawal), for predefined amount of time (3 to 12 months depending on a severity of malicious behavior).

Please refer to the table below to better understand how required proof-of-stake is being calculated:

Wicrypt PoS requirement

Wicrypt PoS unstake period (lockup)

The more devices are bought by the future host, the lesser PoS deposit per device gets. Maximum discount related to the amount of devices bought/owned is 33%, and remains the same even if the host has more than 5 devices.

Unlike the PoS deposit discount, unstake cooldown period is growing per every device. This approach is justified by the need to ensure network stability and extend the period in which Wicrypt DAO can prepare for a high number of hubs being switched-off.

PoS requirement is applicable only for physical router owners. Digital hosts are exempted from the necessity of making PoS deposits.

From an incentivisation perspective, tokens staked as a part of PoS requirement are classified same as staked $WNT tokens (please refer to ‘Token Economy’ section for more details), i.e. they entitle hosts for participation in staking rewards distribution, staking score aggregation and progressive unlock of in-platform bonuses the longer they’re being staked.