PEPS — An Investment Asset

4 min readOct 29, 2018

The Added Value of PEPS In A Global Market Portfolio

Investing in cryptocurrencies requires a well-established discipline to manage financial risks. As an investor, it is important to consider how much you’re in cryptocurrency. It is also essential to be strategic in comprehending the fundamentals of a digital asset, as this plays a major role in the level of financial risk involved.

Before investing in a cryptocurrency, it is important to establish its purpose in the market. It is also crucial to consider how long it has been in use. A cryptocurrency’s market capitalization and the underlying tech solutions are also important factors to keep in mind when it comes to investment. According to market research, a cryptocurrency that solves an existing problem is more likely to do well in the market as compared to the ICOs (Initial Coin Offering).

With PEPS masternodes are the main talking point when it comes to investment. These decentralized networks bring forth the opportunity to invest in cryptocurrencies and further earn guaranteed extra coins. While normal wallets accrue a 20% benefit of the block reward, masternodes earn up to 80% in benefits from the block reward.

Enabling Continuous Passive Income

PEPS goes beyond the ordinary blockchain reward system to ensure that its users are continually reaping benefits. Since masternodes are the backbone of investment in PEPS, a user has to collateralize coins to set up this network node. To achieve this, an investor has to buy 20000 PEPS and send them to one address so that they can set up their masternode.

After setting up a masternode, the investor is then expected to start earning some passive income. PEPS has developed a guideline to help calculate the expected earnings from investing in masternodes:

The letters are used to represent parameters as indicated below:

n — the number of an investor’s masternodes.

b — average number of daily blocks.

c — actual block reward.

m — total number of masternodes in a network.

p — average masternode payment

This implies that the fewer the masternodes in a network, the more the earnings of a masternode owner in that network. Keeping this attribute in mind, it is an advantage when you are among the first users in a network.

Block Reward Structure

PEPS reward distribution system is divided between masternode owners and stakers. These rewards vary for various phases of investment. Phase 2 of the investment period is the promotions stage. Blocks start from 2 to 20000, and the masternode reward for one block is 0.7 while the staking rewards are 0.3. Phase 3 and 4 are the first and second presale stages. Blocks for phase 3 are those between 20001 and 45000 while those of phase 4 are those spanning from 45001 to 70000. The masternode rewards of phase three are 1.4 while the staking rewards are 0.6. For phase 4, the masternode rewards ae 2.1 while the staking rewards are 0.9.

These stages take three months for the persistent phase of a network to reach. After the end of three months, a new network is set up to avoid the dominance of old users in a network. The gold rush phase represents stage five to eight of the investment cycle. The returns throughout these phases are always increasing, even as we move to the Skyfall phase, maturity phase, harvest phase and persistent phase. The persistent phase is the last stage, with blocks from 1000001 to 1500000. The masternode and staking rewards for this stage are 27 and 3 respectively.

Conclusion

Investors should consider the various underlying factors before settling on the cryptocurrency to invest in. For PEPS, the most important consideration to make is the passive income and reward system. PEPS investors enjoy more passive income and rewards as they get ‘older’ in a network. This way, they continue owning more masternodes for their functions and also develop more networks.