Minting is a process that occurs on some blockchain networks, allowing users to earn rewards for holding or staking their tokens. This process is also known as “staking” and can be used to incentivize users to hold onto their coins over extended periods of time.
In the minting process, miners run special types of nodes called masternodes which are responsible for validating transactions and maintaining the network. These masternodes require a certain amount of coins in order to function and they reward those who stake their coins by giving them a portion of all transaction fees collected from processing new blocks. The more coins held by a user, the higher the rewards they will receive when minting new tokens.
This system works because it gives people an incentive to keep their funds locked away instead of trading them back and forth on exchanges, thus increasing liquidity in the market while discouraging price speculation on smaller currencies. It also helps promote decentralization since larger investors are not able to take control over large portions of newly created assets like they would if there were no staking requirements in place.
Minting can be done through many different types of wallets that support proof-of-stake consensus algorithms such as Ethereum’s Casper protocol or Tezos’ Delegated Proof-of-Stake (DPoS) algorithm among others. Depending on the wallet provider you use, you may need additional software such as Geth or Parity clients in order run your own node properly before being able to start staking your coins with them successfully.
The rewards received from minting vary depending on how much coinage you stake and how long you leave it untouched – generally speaking though, these rewards range anywhere between 5% – 15%.
