Shielding ZelNode Rewards with ZelCore

This guide shows how to shield your ZelNode rewards to make them spendable, a required process for Zcash-fork newly minted coins.

Shielding & why it's necessary

For Zcash and Zcash-forked coins (like ZelCash), freshly minted (coinbase) coins must be shielded to make them spendable. Your ZelNode rewards are received by you as coinbase coin, as they are sent to you directly from each block find. The shielding action will send your coinbase coin to a private address (Z-address) of your choosing, which will shield them. From the Z-address, you can send the shielded coins back to a transparent address (T-address) of your choosing, like your light ZelCash address in ZelCore, and your rewards are now spendable and can Tx anywhere.

This rewards distribution method was selected as it is a completely trustless system; from the moment of the block find, you as the node operator are always in control of your rewards without having to trust an intermediary. For example, there are projects that will shield your rewards for you, but first your rewards must be sent to a specific address that you do not control, the shielding is performed, and the coin is distributed back to you. This method is highly centralized and needing to trust a 3rd party goes against the ethos of the Zel Project. In the future, ZelCore will continually add features to make shielding easier for the operator.

Coinbase coins require 100 confirmations from block find to mature. The shielding process will take 2 confirms, and then you can send your rewards to an address of your choosing, which will take another 2 confirms.

Shield your ZelNode rewards with ZelCore

Create a Z-address (private) if you have not previously (only needs to be done one time)

Launch full node, allow to sync completely, then select Receiving Address

Select New Sapling Address

Click on Private Key and back up using your preferred method

Shield the coinbase coin

Click Toolsbutton

Click Wallet Management button

Click Shield Coinbase button

Paste your Z-address (private Sapling address, not private key)

Click Shield button and your transaction ID will be displayed

Send ZelNodes rewards coin to a T-address

On the main Full Node screen, click Send button

Select your Z-address in the "From" field, and paste your desired T-address in the "To" field. Enter the amount to send

Click Send button and your transaction ID will be displayed