# Mining and Staking on Verus

How Verus secures its network with a 50/50 hybrid of Proof of Work and Proof of Stake

Verus uses a 50/50 hybrid of Proof of Work (PoW) and Proof of Stake (PoS). This means that roughly half of all blocks are found by miners (using computational power) and half by stakers (using coin holdings).

Block N   [PoW] ← Miner solves hash puzzle
Block N+1 [PoS] ← Staker selected by UTXO size
Block N+2 [PoW] ← Miner solves hash puzzle
Block N+3 [PoS] ← Staker selected by UTXO size
  ...

The alternation isn't strictly every-other-block, but over time the ratio balances to approximately 50/50. The protocol enforces this by adjusting difficulty independently for PoW and PoS.

Each consensus mechanism has weaknesses. Combining them provides stronger security:

To attack Verus, you'd need to control both significant hashrate and significant coin holdings simultaneously — a much harder proposition than attacking either mechanism alone.

VerusHash 2.2 is Verus's custom mining algorithm, designed with a specific goal: keep mining accessible to everyday CPUs.

Most crypto mining algorithms eventually get dominated by specialized hardware:

• SHA-256 (Bitcoin) → ASICs dominate, home mining is dead
• Ethash (old Ethereum) → GPUs dominated
• RandomX (Monero) → CPU-friendly but still FPGA-vulnerable

VerusHash 2.2 uses a combination of techniques — including AES and AVX instructions — that map well to modern CPU architectures. FPGAs can mine Verus but are intentionally equalized to roughly ~2x CPU cost-performance, preventing them from dominating. No ASICs exist for VerusHash. GPUs can also mine (ccminer has a Verus2.2gpu branch) but generally perform worse than modern CPUs. CPUs remain the primary and most cost-effective mining hardware.

The result: As of v1.2.x, CPU mining remains competitive on Verus. A modern desktop CPU can meaningfully participate in mining, which supports decentralization.

To start mining:

# Enable mining with 4 CPU threads
verus setgenerate true 4

# Check mining status
verus getmininginfo

The getmininginfo command shows key metrics:

• localhashps — Your local hash rate
• networkhashps — Estimated total network hash rate
• difficulty — Current PoW difficulty
• generate — Whether mining is active
• numthreads — How many CPU threads are mining

Solo mining means your node finds blocks independently. You get the full block reward when you find a block, but blocks may be infrequent depending on your hashrate relative to the network.

Pool mining means you contribute hashrate to a pool that combines many miners' power. Rewards are split proportionally. More consistent payouts, but you pay a pool fee (0.1–5% depending on the pool).

For most miners, pools provide more predictable income. Solo mining is viable mainly for those with significant hashrate.

Staking on Verus works differently from delegated PoS systems (like Ethereum). There's no minimum stake, no validators to delegate to, and no slashing.

Here's the process:

1. You hold VRSC in your wallet
2. You enable staking (verus setgenerate true 0 — 0 threads means staking only, no mining)
3. Your wallet must remain unlocked and online
4. The protocol selects stakers based on UTXO size — larger UTXOs have a higher probability of being selected to stake a block
5. When selected, your wallet automatically creates a PoS block and earns the block reward

Staking Selection (simplified):

  Larger UTXO → Higher probability of being selected
  
  After staking, the UTXO is consumed → prevents monopolization

• Keep your wallet running 24/7 for maximum staking opportunity
• Larger UTXOs stake more often, but after staking they reset coin age
• Split large holdings into multiple UTXOs for more consistent staking (though this has diminishing returns)
• Use verus setgenerate true 0 to stake without mining (saves CPU)

Verus follows a halving schedule similar to Bitcoin, but with its own parameters:

Halving interval: 1,051,920 blocks (~2 years at ~60s average block time).

(Source: docs.verus.io — Economy)

Tip: Use getblocksubsidy to check the current block reward. Use getcurrency VRSC to see the halving interval in the eras field.

Each block reward is split between the miner/staker who found the block. Since blocks alternate between PoW and PoS, both miners and stakers earn comparable total rewards over time.

Verus has a max supply of 83,540,184 VRSC. The halving schedule means emission decreases geometrically, approaching this limit over time.

Verus supports merged mining — the ability to mine Verus and up to 22 PBaaS chains simultaneously, with the same hashrate.

Your CPU Hashrate
       │
       ├──→ Verus (VRSC) blocks
       ├──→ PBaaS Chain A blocks
       └──→ PBaaS Chain B blocks
       
Same work, multiple rewards

When PBaaS chains are launched with PoW consensus, Verus miners can opt in to merged mining. The getmininginfo output includes mergemining (number of chains being merge-mined) and mergeminedchains (their names).

This is significant because:

• New chains get security from the existing Verus mining network from day one
• Miners earn additional rewards without additional hardware
• It strengthens the entire PBaaS ecosystem

While mining pools are straightforward (combine hashrate, split rewards), staking pools on Verus come in two forms:

Your coins remain in your wallet. Using VerusID, you can delegate staking power to a pool without transferring custody. The pool combines staking power from multiple participants without holding anyone's coins.

Example: Synergy Pool uses this model.

A pool operator runs a 24/7 node and participants send coins to a shared wallet. Rewards are distributed proportionally. This requires trusting the operator with your coins.

Recommendation: Prefer non-custodial VerusID staking pools when available — you retain full control of your funds.

The setminingdistribution command allows miners to automatically distribute their mining rewards to multiple destinations:

verus setminingdistribution '[
  {"address": "RAddress1", "percentage": 50},
  {"address": "RAddress2", "percentage": 30},
  {"identity": "myid@", "percentage": 20}
]'

This is useful for:

• Automatically paying pool participants
• Splitting rewards between a hot wallet and cold storage
• Directing a percentage of mining income to a specific identity or project
• Tax management (separate mining income into different addresses)

# Start mining with all available threads
verus setgenerate true -1

# Start mining with specific thread count
verus setgenerate true 4

# Stop mining
verus setgenerate false

# Unlock wallet for staking only
verus walletpassphrase "your-passphrase" 0 true

# Enable staking (0 mining threads = staking only)
verus setgenerate true 0

# Unlock wallet
verus walletpassphrase "your-passphrase" 0 true

# Mine with 4 threads AND stake
verus setgenerate true 4

# Full mining info
verus getmininginfo

# Quick generate status
verus getgenerate

1. 50/50 hybrid — Verus combines PoW and PoS for stronger security than either alone.
2. CPU-friendly — VerusHash 2.2 keeps mining accessible to regular computers.
3. Low barrier to stake — No minimum stake, no delegation, no slashing. Just hold coins and keep your wallet open.
4. Merged mining — Mine Verus and PBaaS chains simultaneously for additional rewards.
5. Halving schedule — Block rewards decrease over time, creating a deflationary emission curve.

• getmininginfo — Check mining and staking status
• setgenerate — Enable/disable mining and staking
• getgenerate — Check generate status
• getnetworksolps — Network hash rate details

As of Verus v1.2.x. VerusHash 2.2.