In this module, you will get up to speed on all you need to know about PIVX wallets, staking, and DAO governance. Get ready to set up your PIVX wallet, stake some PIV coins, and create your first governance proposal.

How to Setup a PIVX Wallet

Types of PIVX wallets

There are two primary wallets for storing PIV coins – PIVX Core and MyPIVXWallet (MPW). 

The PIVX Core Wallet is the official full-node wallet, available across major desktop operating systems including Windows, macOS, and Linux. It is recognized for offering the most comprehensive feature set, notably supporting both staking rewards and full Masternode functionality. However, using the Core Wallet requires users to download the entire PIVX blockchain, which can consume significant storage space and necessitate a lengthy initial synchronization time. This full-node approach provides the highest level of security, assuming the user's local computer is properly protected.

In contrast, the MPW Web Wallet is a lighter, web-based solution that is designed for speed and convenience. It is considered a light wallet because it does not require downloading the full blockchain, making it much faster to set up and far less demanding on computer resources. Despite its lighter nature, the MPW wallet still offers good security, incorporating features such as mnemonic passphrase recovery and staking. This makes MPW an excellent choice for users who prioritize quick access and efficiency.

How to Create a PIVX Wallet

1. Setting up the PIVX Core Wallet

• Download and Install: Download the latest version of the PIVX Core Wallet directly from the official PIVX website. Executables are available for Windows, macOS, and Linux. Proceed to execute the downloaded file and follow the standard installation prompts for your operating system.
• Full Node Requirement: The Core Wallet is a "full node," meaning it must download and verify a copy of the entire PIVX blockchain. This is a requirement for its advanced security and decentralized functions. Be prepared for this initial synchronization to take several hours, depending on your internet speed, and require a minimum of 30 GB of free disk space. The wallet cannot be fully used until this process is complete and it shows as "synced."
• Secure Your Wallet: Once synced, the most crucial step is to encrypt your wallet by setting a strong passphrase. Navigate to the Settings or File menu and choose "Encrypt Wallet." Immediately after setting the passphrase, locate and safely back up the wallet.dat file. This file contains your private keys. Store the backup in a secure, offline location (like a USB drive) and keep multiple copies. Without this file and your passphrase, your funds are permanently lost.

2. Creating the MyPIVXWallet (MPW)

• Access the Official Site: Navigate directly to the official MyPIVXWallet website. Because this is a web application, be absolutely sure you are on the correct, verified URL to avoid phishing scams.
• Generate a Wallet: Select the option to create a New Wallet. The wallet is created locally in your browser and is non-custodial, meaning you, and only you, control the private keys. The system will generate a 12-word mnemonic seed phrase (sometimes called a recovery phrase).
• Write Down Your Seed Phrase: This step is non-negotiable and essential. You must write down your mnemonic seed phrase on paper, verify it for accuracy, and store it in a secure, private location. Do not save it digitally (on your phone, computer, or cloud storage). If you lose this phrase, or if it is stolen, you lose access to or control over all your funds. This phrase is the key to restoring your wallet on any device.
• Set a Wallet Password: After securing your mnemonic phrase, you will be prompted to set a strong, unique password. This password encrypts the wallet for use within your current browser session. Note: This password protects your local access; the mnemonic phrase protects your funds permanently.

Private Key Management

Your private key is a secret alphanumeric code, or more commonly, a mnemonic seed phrase (a set of 12-24 words). This code proves ownership of your crypto assets on the blockchain and authorizes transactions. Whoever controls the private key controls the funds.

Poor key management is the leading cause of cryptocurrency loss, whether through theft (being "hacked") or permanent loss (forgetting or destroying the key). Here’s a general list of dos and don’ts when it comes to private key management.

Dos

• Use a hardware wallet (cold storage) for large funds to keep keys offline.
• Create at least two copies of your backup and store them in physically separate, secure locations (e.g., safe, safety deposit box).
• Use a strong, unique passphrase to encrypt your software wallets and enable 2FA on related services.
• Only download wallet software from the official project website or verified app stores.

Don’ts

• Do not store your private key or seed phrase on any device that connects to the internet (computer, phone, cloud).
• Don’t take a picture of your seed phrase, screenshot it, or type it into a digital file.
• Do not share your private key or seed phrase with anyone, including "wallet support" or legitimate-sounding websites/people.
• Do not use the same password for your wallet/exchange that you use for your email or social media.

Staking and Masternodes

PIVX offers more than just a privacy coin; it provides a comprehensive economic model that allows every user to earn passive income and participate directly in the network's security and future. This is achieved through its two-tiered reward system: Staking and Masternodes.

Staking

By simply holding PIVX in a connected wallet, you become a participant in securing the network and are rewarded with newly minted PIVX. The more PIVX you hold, the higher your chances of being randomly selected to validate the next block and receive the block reward.

Staking is open to all users with a minimal balance (as low as 1 PIVX). While annual reward rates are dynamic, they are currently estimated to be around 8-13% APY, providing a healthy yield for simply securing the network.

Masternodes

For those with a larger investment, running a PIVX masternode offers both higher rewards and a dedicated role in the network's core operations and governance. To run a masternode, you must lock up a collateral of 10,000 PIVX. This collateral acts as a security bond, ensuring the operator acts honestly. This collateral can be spent at any time, but this means that your masternode will go offline.

Masternode operators receive a significant, often higher, portion of the block rewards than a regular staker. Current estimates place the masternode Annual Reward Rate (APY) around 10-16% (this rate fluctuates based on the total number of active Masternodes).

How to Stake PIVX

MyPIVXWallet (MPW) offers an excellent way to earn staking rewards without keeping your wallet open 24/7 or downloading the Core Wallet. This is known as cold staking, an option that allows you to keep your coins safe offline while delegating the right to stake to a dedicated online node.

How PIVX Governance Works 

PIVX operates as a decentralized autonomous organization (DAO). This means that major decisions, funding for development, and the future direction of the protocol are decided entirely by its community of masternode operators.

The governance structure is built around two interlocking components: the masternode network and the decentralized treasury. 432,000 PIV is paid out in a "Super Block" to all proposals that achieve the necessary consensus.