NEM has a unique namespace/smart asset system, very similar to the structure of the internet domain/page, each user can easily apply for their own namespace, and issue the chain of assets on the public chain. XEM is the chain of assets published in the NEM base namespace.
Currently, there are 2 options for obtaining passive income and staking rewards with your NEM investment. These are Runing a supernode and Harvest NEM.
Supernodes are high performance blockchain nodes which form the backbone of the NEM blockchain network. Accounts with 3,000,000 or more XEM can operate a supernode, either from a local computer or from a cloud-hosted server. Supernodes are required to be up and running 24 hours per day, processing all transactions.
The NEM network has two layers. The supernode layer keeps the system powerful and fast, whilst ensuring that it maintains efficiency and optimum performance. This layered design allows the second layer of wallets and third party apps to use the entire network without downloading or processing the entire blockchain.
To harvest NEM coins it is recommended to run the official NEM Core wallet with an entire copy of the blockchain on your Computer or a Virtual Private Server (VPS). To get the highest possible rewards, please make sure to stay online 24/7 and keep the wallet unlocked for staking only.
Proof of Importance (POI) is the algorithm that determines how likely each account is to complete a block and earn all the transaction fees contained in it. Supernodes have the ability to host non-supernode harvesting accounts. This is called Delegated Harvesting and it has a double benefit. Harvesting accounts lend their POI score to the supernode’s POI, increasing its chance of completing a block. When a supernode completes a block because it was using a harvesting account’s POI score, the harvesting account keeps the transaction fees.
POI Score Depends on 3 Factors:
This lets any harvesting account collect transaction fees, closely similar to mining coins in other cryptocurrencies, but with no special hardware required, low energy usage, and with an incentive to make transactions instead of hoarding coins.