Proofgold uses the litecoin blockchain as an integral part of its consensus algorithm, and so proofgold must be run in conjunction with a litecoin node. A node "mines" a proofgold block by burning some litecoins in a specially formed litecoin burn transaction. This burn transaction records information about the state of the proofgold blockchain. Proofgold blocks may also be staked by combining some proofgold bars in the node's wallet with some burned litecoins. A difficulty adjustment algorithm targets one proofgold block per hour.
There is a hard limit of 21 million on the number of proofgold bars that will be created. This is accomplished by issuing a block reward of 50 bars for the first 210,000 blocks, with the reward halving every 210,000 blocks. Each block has a special coinstake transaction sending half the block reward to the staker of the block and the other half as a bounty to a pseudorandomly determined proposition. This bounty can be claimed by the first person (presumably with an automated theorem prover) to publish a proof of the theorem or a proof of its negation into the proofgold blockchain.
For more details on reward bounty propositions, see here.
For more information on how to publish proofs, see here.
The following steps explain how to set up a node to stake.
Some important proofgold commands: