Qtum Analysis

Qtum is an open-source hybrid Dapp development platform. While Qtum’s core technology is built around the security of UTXO model similar to that of Bitcoin core, an Account Abstraction Layer (AAL) has been created on top of this model to communicate with multiple Virtual Machines including the Ethereum Virtual Machine.

The combination of using the best of both Bitcoin and Ethereum creates an ideal environment for participants and developers to access and create Dapps. Other advantages include flexibility enabled by smart contracts, streamlined development using a stack of coding libraries, and multiple APIs for plug and play integrations.

While Bitcoin and Ethereum both run on the Proof of Work (PoW) consensus mechanism, Qtum uses the Proof of Stake (PoS) consensus mechanism. Read the Step-by-Step Guide on QTUM to learn more about the PoS consensus mechanism on Qtum’s blockchain network. Stake your QTUM tokens after reading this guide.

The most important benefit of staking is getting access to the rewards when a block is produced. Block producers get 4 QTUM, as well as the transaction fees and gases as block reward. Rewards are distributed depending on the ratio of your stake to the total number of tokens staked. As on September 1, 2020, our staking records suggest that the annual percentage rate (APR) of return on staking QTUM is 6%-10%. This article has been written to get a clear understanding of these returns.

QTUM Staking Analysis

The official website for information on Qtum provides all the information needed for staking returns. For example the Stake Calculator keeps the annual returns fixed at a certain percentage, here it is 7.2%, to determine the expected time and blocks that will be produced per year. The left hand side also includes the network weight. The network weight is calculated, based on the total number of tokens staked. Let us first understand a few concepts before moving into the analysis of staking.



The annual ROI is calculated by estimating the network weight which is the amount of QTUM tokens that are staked on the network. If the network weight is low, meaning less tokens staked, then the APR for the network will be higher than when the network weight is high. This means that there is an inverse relationship between the network weight and the annual ROI which keeps changing with the change in the weight.

Participating in the staking process of QTUM on CoinDCX does not require you to lock in your funds or wait for the network to reward you based on your odds. We remove the hassle of setting up nodes for validation and any difficulties that lie in the process. Users of Stake participate in the staking pool by depositing QTUM tokens in their CoinDCX wallet. Rewards are automatically sent to these wallets based on the number of days the tokens have been staked.

Therefore, staking on CoinDCX is as simple as depositing tokens in your wallet and hodling them for as long as you want to stake. To participate in the staking process of QTUM, simply buy QTUM tokens from the CoinDCX platform or transfer them from another wallet to your CoinDCX wallet! These can be traded on CoinDCX or sent to other wallets as and when users wish to do so.

Therefore, if you stake 1000 QTUM tokens,



Your Investment $3455 (if QTUM/USDT ~ $3.455)
Expected Time 20.29 Days
Blocks Per Year 18.02 blocks
Expected Rewards Per Year 72 QTUM
Annual ROI 7.21%


Maximising Your Returns

While staking might be disadvantageous for many who have to lock their funds to gain staking rewards, many platforms including CoinDCX allow users to stake QTUM tokens without locking them. There is no additional fee or commission that users pay for staking on our platform. While the ROI remains the same for all stakers, the advantage of staking on CoinDCX is that you can quickly trade them for other available pairs in case of price fluctuations. This is a great way for users to take advantage of the price volatility in the crypto market and earn passive income on tokens lying idle.

One way to ensure that your rewards get maximized is by not withdrawing them. Let them stay in your wallet. You do not have to go through any procedure to stake your coins. All the QTUMs in the wallet get staked. This is a great way for you to reinvest your returns and earn more on them.

Lastly, you could also keep hodling more QTUMs when the price hits the support or when you feel that the price is at its lowest. This will help you get the QTUM tokens at the best price and also earn rewards at the same time. You could on a later date, sell them for a higher price.

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