The Golden Investment
STAKING CET WITH CSC
It is very important to understand the tokenomics behind any token before investing in it. In times of a depreciating cryptocurrency economy, it is vital to understand what you're about to invest in, be vigilant about what happens to your money.
Tokenomics is the study of how cryptocurrencies work within the broader ecosystem. This includes such things like token distribution as well as how they can be used to incentivize positive behaviour in the network.
Tokenomics enables teams to create a new or adapt an existing model that works with what the project wants to achieve. This can create a high-functioning and stable platform, a great example of this is CET on the CoinEx Smart Chain.
CoinEx Smart Chain (CSC)
Based on PoS consensus protocol, CoinEx Smart Chain is decentralized and energy efficient. CSC makes it easy to build your own decentralized applications.
CSC is a decentralized and high-efficiency public chain, It can provide developers with an efficient and low-cost on-chain environment to run decentralized smart contract applications (DApps), develop and deploy DApps and store digital assets.
Why Choose CSC?
- Full EVM Compatibility : DApps on Ethereum can be directly migrated to CSC
- Permission-free and More Decentralized : Support up to 101 nodes based on the ranking of staked CET
- High Performance With Low Fees : Secondly block generating time with extremely low transaction fees
CoinEx Token — CET
CoinEx Token (CET) represents a value-added services & privileges scheme based on CoinEx’s business ecosystem. CET is issued on Ethereum ERC20 protocol and has been migrated to our self-innovated CoinEx Smart Chain (coinex.org) acting as gas, CET functions as the platform-based token of CoinEx, as well as the CSC’s public chain token.
In 2021, CET had recorded strong performance while competing with its rivals. Moreover, thanks to its superior track record, CET became one of the most-watched public chain tokens among crypto investors in the latter half of 2021.
CET Tokenomics
CET on CSC runs the same way as ETH runs on Ethereum, and its main functions are:
- As block reward for validators.
2. To pay for the gas for transfers and contract calls on CSC.
3. To pay for the transaction fees for deploying smart contracts on CSC.
4. To be delegated to the selected validators.
Token Distribution
Projects need to be able to distribute coins out to prospective users. If not, the network can exist but no one will be able to use it!
There are different ways this can be achieved. The networks reward validators, or miners, with newly minted coins; others sell a portion of the token supply to prospective users in an initial coin offering (ICO).
CET has been issued and circulated in different ways, including airdrop incentives, transaction fee discounts, promotions and team unlocking.
CET Values
- CoinEx Smart Chain — As a built-in token for CoinEx Smart Chain to circulate and act as gas, CET is based on the POS consensus protocol, decentralized and energy efficient, making it easy to build your own decentralized applications.
- VIP services and privileges — Users with a certain amount of CET holding can obtain VIP membership and enjoy privileges such as fees discount, withdrawal acceleration, exclusive customer service.
- Deducted as trading fees — CET can be deducted directly as trading fees with the same market value at the dedicated discounts.
- Exclusive promotional privileges — CET holders are entitled to special qualifications for promotional campaigns on CoinEx such as airdrop incentives, Accelerator support for quality projects.
CET has more use cases like Cryptocurrency Trading & Derivatives Trading.
Consensus and Validators
Based on the above design principles, the consensus protocol of CSC aims to achieve the following objectives:
- Compared with Ethereum, the block generation time by about around 3 seconds.
2. To be compatible with the Ethereum ecosystem as much as possible.
3. Staking-based on-chain governance mechanism.
4. Up to 101 block proposers without permission.
Consensus
Proof of Stake
Although Proof of Work (PoW) has proven to be a practical solution for decentralized networks, it is not environmentally friendly and requires a large number of participants to maintain network security.
Integrating the features of PoS and PoA, CSC adopts PoS as the underlying consensus mechanism with the block generation mechanism of PoA. The adopted scheme as below:
- Blocks are generated by a limited number of validators.
2. Validators generate blocks in PoA in turn. In other words, they share the same probability of generating blocks, which is similar to the Clique consensus engine of Ethereum.
3. The set of validators is selected and eliminated by on-chain governance based on staked tokens without any permission.
4. Anyone can delegate tokens to the node he or she trusts.
Validation
In the genesis block stage of the network, some trusted nodes will operate as the initial set of validators. For the management of privileges and stakes, a validator management system contract will be deployed after the network is launched. After the block is generated, anyone can participate in the election of validators by calling the system contract to stake CET. The top 101 nodes that by the number of staked tokens, will constitute the next set of validators. Such election and elimination go every 200 blocks. Given the block generation time of 3 seconds, the set of validators will be updated every 10 minutes.
Staking CET on CSC
Everyone is welcome to assist nodes to become validator by staking CET.
The first staking for the validator must exceed 10,000CET and each subsequent staking must exceed 1000 CET . Based on overall staking ranking, the blockchain will select the top 101 nodes as validators in every 200 blocks. The validator has the obligation to generate blocks and verify on-chain info. In return, the validator will be rewarded with block commission fees and a certain amount of block production reward (currently 1 CET) on the basis of the proportion of their staking.
The assets can be unstaked directly via contract calls or command operations and these CET will be available for withdrawal after 86,400 blocks.
CSC manages node staking and governance via system contracts. Via staking contract, anyone can create nodes, stake for the nodes and make profits.
Yields & Rewards
Yields of validators generally come from two aspects:
- Mining rewards
- Transaction fees in each block.
The yields are distributed according to the percentage of tokens staked by validators in the total stake. Since the validators generate blocks in turn with the same probability (in the case that they are always online), their yields are determined by the proportion of their CET staked.
Mainly, the rewards for validators are from block rewards (1 CET per block) and commission fees from block transactions. The reward differs according to the proportion of validator staking in overall staking. Since the validator take turns to generates blocks with the same probability (if they remain 100% online), the revenues of all validators are only related to their staking proportion.
The blockchain distributes rewards in proportion to the staking every 200 blocks. Validator’s reward receipt address can retrieve the reward by invoking the contract or via node command line. Rewards can be withdrawn every 28,800 blocks.
Conclusion
Obviously, CET’s value is not confined to the CoinEx ecosystem. Along with the advancement of blockchain technology and the expansion of the crypto market, CET, initially deducted as trading fees, has provided more functions and use cases after CSC was launched. So far, the token covers a wide range of application scenarios, spanning fee deduction, repurchase & burning, public chains, DEX, and DApp, and more use cases will be introduced in the future.
For resources :
- Join CSC’s Telegram group.
- Follow CSC’s Twitter account.
- Join CSC’s Discord group.
Follow my Twitter for more updates.
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