Cardano (ADA) Incentivized Testnet: How to Participate and Stake Your Crypto
The Cardano Incentivized testnet is the beginning of cryptocurrency’s “Shelley” rollout, which will culminate in the release of what is said to be a secure, decentralized proof-of-stake (PoS) network. Allowing users to “stake” their coins, which allows holders to receive coins passively, simply for holding coins, and stabilizing the network.
Article first read on Bitcoin Cryptocurrency List.
Why conduct the Incentivized Testnet?
Cardano runs on the Ouroboros protocol: claimed to be “the most advanced and secure PoS protocol in development.” With this speculative innovation however, comes complication, so, to ensure stable and robust foundations, they’ve chosen to implement it in a practical and responsible way.
The Incentivized Testnet will show the Cardano’s incentive mechanism operating in a near real-world context. These mechanisms are integral to the success of Cardano, as incentives guarantee network participation, promote growth, and ensure stability.
This also allows the testing of human behavior/interaction on the network in a controlled manner, which will allow the community to gather valuable feedback and build a stable and qualified group of decentralized stake pool operators for the mainnet launch.
How to Participate in the Testnet?
The Incentivized Testnet will begin with a UTXO snapshot of all the Cardano (ADA) balances held across the mainnet. This snapshot will capture the value of your wallet’s balance at the time. You will then have a “mirrored” version of you wallet and it’s balance at the time of the snapshot, on the testnet.
Cardano holders will need to ensure they are holding their coins in an approved wallet. For technical reasons Cardano held on exchanges or on hardware wallets (ledger nano S) will not be included in the snapshot.
Ada stored on exchanges or hardware wallets must be transferred to a supported software wallet, prior to the snapshot.
The snapshot will happen during November.
Easy or Hard to Delegate Your Stake of Cardano?
It’s stated by IOHK that no technical knowledge is required to delegate your stake of Cardano. To take part, you holders will need to download one of the special testnet Daedalus and Yoroi wallets. These wallets will be made available for download at a later date.
After the snapshot, you’ll be able to access your testnet wallet as you would your mainnet wallet: By entering your mnemonic phrase to view your Incentivized Testnet ada balance.
The testnet wallets will feature an option to allow users to delegate their stake of Cardano to one or more stake pools, and users will be able to choose how they delegate from within the wallet.
Testnet Cardano coins Rewards Real Money?
The Cardano within the Incentivized Testnet can be used as it would be on the mainnet, to delegate or operate a stake pool. It cannot immediately be spent or transferred out of the testnet however, once testnet phase is complete, the Cardano (ADA) rewards accumulated within the testnet will be transferred to the mainnet, as a real, spendable Cardano.
What rewards Cardano Holder/”Stakers” expect?
Coin holders will be able to work out the approximate rewards for delegating, directly via IOHK, on their soon-to-be-released calculator, which will be hosted on a dedicated web page HERE.
Wallets Details for the “Snapshot”: