In this article you can find my research about StakeNet project. I don’t have any investment in $XSN and this review does not offer any financial advice. I have been lucky enough to do a Q&A with the PR Manager of StakeNet to make some things more clear for everyone.
What is StakeNet?
StakeNet started its journey as POSW — Proof of Stake Wallet — and rebranded itself on March 2018.
StakeNet is the world’s first Trustless Proof of Stake (TPoS) coin that allows users to safely, and conveniently stake their XSN coins in cold wallet storage using Ledger hardware wallets. Their system also offers masternodes and regular PoS for you to earn passive income.
StakeNet has 21 million market cap and traded around 0.38$.
What is Trustless Staking?
Trustless Staking is the unique staking method of StakeNet. The system works with something called Triplet-based encryption and creates a gateway for cold wallet staking.
Instead of having only public and private keys for your wallet, XSN has created a third key called ‘shared’ key. By doing so, you can let a third party(Merchant) to do the staking for you with their high-bandwidth internet connection for a commission agreed upon by both parties taken from the staking rewards.
With the TPoS, you only share your “shared key” of the wallet with the Merchants and have your coins stake on the network. No hassle of keeping a computer 24/7 open and the freedom/security of keeping your coins in your cold wallet.
Q: Is there any kind of security for the stake owners who doesn’t get their stake rewards from merchants?
A: Impossible. Smart contract fully automates the TPOS process. Merchant and Staker set the commission, contract is formed, and the reward/commission are auto divided.
Staking Rewards
The block rewards for XSN are split between masternodes, staking nodes, and treasury. Masternodes will receive 45%, staking rewards will also receive 45% of the block rewards for leaving their nodes online securing the network. Lastly, 10% of the block rewards will go to the treasury as an extra fund for future developments of XSN and various other factors for XSN.
$XSN Coin
The coins main use is of course for staking rewards. The more you hold, frequent the rewards you get in return. The coin also will be used as gas in their upcoming decentralized exchange.
Token Supply
Total block reward for XSN will stabilize at 5 XSN per block according to the table below, but the coin supply is theoretically unlimited.
However, to get ahead of the coin inflation, XSN is working on a system called Revolving Staking Bonus. There are some information in this article about RSB, but looks like it is still in very early stages:
https://medium.com/stakenet/rsb-rewards-creating-new-models-for-business-2cccfe258572
Team
The XSN team mostly consist of developers. It’s a heavy tech oriented team rather than business side of things.
Q: How many dedicated developers are working on the XSN project?
A: 5 full time developers and 3 project managers are working at StakeNet.
Roadmap
You can find their roadmap in their website.
Two major things are coming up for StakeNet:
We are working on a masternode-based decentralized exchange and XSN coin will be used as gas in the upcoming exchange. Also, masternode owners will be able to get extra rewards from the exchange fees on top of their masternode block rewards.
Cross chain proof of stake system implementation (CCPoS). After this technological integration, all lightning network compatible coins will be able to be staked through XSN system.
What do I like about this project?
- They have new ideas and the team is delivering.
- CCPoS could be very innovative and can bring many new customers for StakeNet.
- Staking coins from Ledger hardware wallet without moving funds around would definitely keep my mind at ease.
- Marketcap is still small for an ambitious project like StakeNet and there are lots of room to grow.
- Having a XSN masternode could be very profitable, if the DEX’s trading volume reaches to a certain level.
- They have a very welcoming community and lots of dedicated investors.
The Problems?
- They don’t have a whitepaper at this moment. The team stated that it will be available soon.
- Not having team members with respectable business backgrounds could hinder the mainstream and institutional adaptation.
- I want to say lack of marketing efforts, but maybe it might be a good thing at this stage.
- How are they going to deal with coin inflation is still not very clear.
Final
I’m not paid or sponsored to write this article. I’ve delved into XSN project with the request of my Twitter followers, but I’m glad I did. I like their ideas, I like their innovative approach on things. When I figure out my computer situation, I want to invest in this project and setup a masternode. From what I’ve seen, it is a hard working team and I believe they will solve their problems on the way.
This review contains my personal opinions, nothing written here could be considered as financial advice.
Thank you for reading.
Best.
