Written by Logan

On February 1, 2021

Long Staking – The next evolution in Staking, powered by Proton

The Altcoin Dilemma

There is a certain type of stress presented by investing in cryptocurrency: you’re tempted to buy one coin, but you’re nervous about missing out on the performance of other coins. We all have stories of knowing about a certain cryptocurrency, forgetting to invest in it, and then watching on the sidelines as it outperforms the market. These instances are why people invest in anything other than Bitcoin in the first place. We all know that Bitcoin is the gold standard in cryptocurrency, but we’re hoping that whatever else we choose can outperform BTC.

Current State of Cryptocurrency Staking

Staking cryptocurrency has become quite popular in recent months. People from all walks of life have been amazed at the benefits that staking has to offer; just holding certain amounts of a cryptocurrency earns you more cryptocurrency every single day. What could be better than that?

The concept of “staking” might sound new, but it truly isn’t. Bank accounts offer a form of staking as well, though this is usually just referred to as “interest.” Most fiat savings accounts, for instance, offer less than 1% interest on what you have deposited. Not enough to keep up with inflation, but it’s better than nothing.

Cryptocurrency staking often offers much higher rewards. For instance, Coinbase offers 4.63% APY on Tezos (XTZ) deposits. We improved this model and offer variable APY when staking Proton (XPR) in the Proton Wallet, something we call “short staking;” users have recently enjoyed staking yields of over 30% on their Proton.

However, both of these forms of staking – the interest on a traditional fiat account, and the interest on cryptocurrency – share something in common: the yields you receive are tied to the performance of the asset being staked. In other words, you staked a certain coin, and received more of that certain coin, but what if there were coins that performed better that you missed out on?

Altcoins meet Bitcoin – Proton Long Staking!

Problems beg for solutions, and we’ve figured out a way to gain exposure to an altcoin while keeping the security of Bitcoin: Proton long staking. Long staking allows users to lock their XPR into a contract that is tied to the performance of Bitcoin.

Long Staking Calculator

We’ve created a long staking calculator for you to experiment with yourself, you can give it a try here. Below are a few examples of how this would work:

Simple Example:

Stake 100 satoshis worth of XPR today and receive 150 satoshis worth of XPR in 1 year.

Detailed Examples:

Example 1 – 100 XPR staked for 365 days, price of Proton is stable

XPR Staked: 100

XPR / BTC (sats) price at time of contract: 13.14


XPR / BTC (sats) price at end of contract: 13.14

XPR claimed at end of contract: 150

Example 2 – 100 XPR staked for 365 days, price of Proton falls

XPR Staked: 100

XPR / BTC (sats) price at time of contract: 13.14


XPR / BTC (sats) price at end of contract: 8.2

XPR claimed at end of contract: 240.3

Example 3 – 100 XPR staked or 365 days, price of Proton rises

XPR Staked: 100

XPR / BTC (sats) price at time of contract: 13.14


XPR / BTC (sats) price at end of contract: 16.3

XPR claimed at end of contract: 120.9

As you can see in the examples above, when BTC outperforms XPR over the long staking contract, you receive additional rewards on top of your staked amount at the end of the contract. 

This represents a ground-breaking moment for cryptocurrency. Now there is a way to invest in an altcoin, while maintaining the security of Bitcoin. We know that institutional investors are pouring hundreds of millions of dollars into BTC, so by using a Proton long staking smart contract, you have the security of the investment that institutions have chosen while still gaining exposure to the potential performance of an altcoin. This is one of those rare “have your cake and eat it too” moments.

In the case that XPR continues to outperform BTC at least 5% every quarter and 50% every year, long staking does not add any inflation to the Proton ecosystem. In the scenario that XPR does not outperform, the relative underperformance is automatically covered by the long staking contract through the issuance of XPR tokens.

Long staking also creates an additional incentive to hold Proton XPR. The Proton coin forms the base on which the Proton ecosystem operates; developers need Proton to fund their dApps and everything else that Proton offers. By offering long staking contracts, developers can lock their XPR into a staking contract that is more lucrative than traditional staking contracts.

How to start long staking

To get started with long staking, visit proton.bloks.io and login with your Proton Wallet. Next, click the Wallet tab, and select the Long Staking option on the left or click here.

You have two options for long staking: 

90-day Long Staking

In this contract, you stake an amount of XPR for 90 days. This contract offers the benefit of 105% staking rewards, meaning that you will receive 100% of the XPR you staked, plus an additional 5% based on the performance of BTC if BTC outpaced XPR during that time. If XPR outpaced BTC, however, you will simply receive 100% of your XPR back at the end of the contract with no added bonus.

365-day Long Staking

In this contract, you stake an amount of XPR for 365 days. This contract offers the benefit of 150% staking rewards, meaning that you will receive 100% of the XPR you staked, plus an additional 50% based on the performance of BTC if BTC outpaced XPR during that time. If XPR outpaced BTC, however, you will simply receive 100% of your XPR back at the end of the contract with no added bonus.

We believe that the cryptocurrency industry is still in its infancy, with a lot of new and exciting ideas still to come. Long staking is a natural evolution from short staking, and we’re thrilled to bring this option to Proton users. The traditional form of staking that our users have grown accustomed to, now known as “short staking,” is still available as well.

For any help with the Proton Wallet, visit the Proton Wallet section of our website here. You can also follow us on Twitter to stay up to date on the latest news and announcements regarding everything we’re building at Proton.

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