How it works
Zcash Satoshi Plus (ZSP) consensus has three legs: ZEC miners, ZEC holders, and Z token stakers. Dual Staking rewards participants who stake across both the ZEC and Z token legs simultaneously.- Stake ZEC. Timelock ZEC on the Zcash chain.
- Stake Z tokens. Delegate Z tokens to a validator through the ZSPStake contract.
- Earn boosted rewards. The protocol detects dual participation and applies a yield multiplier to the participant’s reward share.
Solo vs. Dual
| Mode | What it means | Reward level |
|---|---|---|
| Solo | Staking only ZEC or only Z tokens | Base rewards |
| Dual | Staking both ZEC and Z tokens simultaneously | Boosted rewards |
Dual Staking and the Z token
Dual Staking is one of the utility drivers for [[The Z Token|the Z token]]. It creates organic demand because ZEC holders who want to maximize their staking yield need Z tokens to qualify for the boosted rate. The flywheel:- ZEC holders stake ZEC on Z (self-custodial timelock)
- To earn boosted yields, they acquire and stake Z tokens
- More Z token staking increases network security and governance participation
- Stronger network attracts more ZEC staking
- More ZEC staking increases demand for Z tokens to unlock the boost