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CSM Token Mechanism Analysis C币机理分析

An in-depth report on our new CSM staking mechanism 新C币质押机制的深入报告

Consentium was established in 2018, as an ecosystem to increase the utility of blockchain and tap on the benefits of decentralisation. As is with all technology, the ecosystem continuously upgrades and evolves with the growing users. Today, CSM undergoes a new upgrade of protocol.

Governance in Code

The biggest change in the new CSM token is governance in code, similar to the governance model of Bitcoin.

Bitcoin is able to achieve the status of decentralisation through having baked-in governance via monetary policy. The monetary policy of Bitcoin is independent of the external environment and is governed in code; namely the halving of block rewards, fixed time period for the creation of new blocks and indirectly, the inflation rate of Bitcoin. Find out more about our new proprietary blockchain, CSM Chain in our previous article.

CSM Token Mechanism Analysis

With the new CSM built-in onchain governance system, let’s take a dive into analysing the implications to the dynamic interest rates.

Passive Income

CSM has a return of 3% to 6% pa for the system as a whole, depending on the total proportion of tokens staked. That means, by staking CSM in your wallet, you earn new CSM tokens. This works similarly to a bank, as you earn interest on your deposits.

For individual stakers, the annualised ROI for an individual staker is higher, with an upper bound of 50% and lower bound of 3%. Considering that according to most staking mechanisms for other tokens have their 20% to 50% of their total supply being staked, this translates to an average of 15% to 20% of annualised returns individually.

The fun aspect of this new token mechanism comes from the play between (1) token price and changing interest rate, and (2) duration of stake.

When CSM price increase, people are more likely to sell their tokens on an exchange or to use them with the various partners accepting CSM tokens. After all, you are getting more for the same quantity of CSM thanks to the price increase.

However, as more people withdraw their CSM to liquidate it, this results in a higher return with the dynamic interest rate. When more people withdraw their CSM, the proportion of CSM staked decreases, resulting in an increase in passive income. Simply, when you resist liquidating CSM, you earn even more via passive income.

When the market sees the increase in passive income returns, they are more likely to purchase CSM. With that, they can stake their CSM and earn passive income. This results in an increase in CSM pricing due to the increase in demand from new CSM holders. And this induces existing CSM holders to sell their CSM, allowing for new CSM holders to enter.

As a result, this mechanism is a self-balancing self-governance model as seen in the relationship below. There is never an equilibrium and this keeps the dynamism going.

There is no incentive to leave the tokens on the exchange since you can always be earning passive income onchain. The only reason to withdraw from your wallet is to use CSM for other functions like the various partners accepting CSM tokens. That means, CSM tokens are always working for you: either earning you passive income or using it with the various partners.

Example: Let’s say 30% of tokens are staked. That gives an individual annualised return of 13.74%. Let’s say 10% of CSM holders are keen to sell their tokens, and tokens staked is now at 20%. This increases the individual return to 16.78%. This increases the returns and when compounded, it can be very significant. This ROI attracts new CSM holders. New CSM holder are keen on earning passive income on this action, so they purchase CSM from the market to stake onchain.

Hence, there is an ongoing balance between the dynamics of token available on market, token price and returns on token.

Why is this important?

This is important because the value of CSM is not just about passive income, but about the price in the secondary market. The new token mechanism keeps a healthy self-governing balance between the passive income of CSM and the price level.

It is absolutely possible for tokens to issue endless passive income, like in the case of 300% ROI for ZNN token. However, this is not sustainable because the massive increase in token supply can affect the token prices negatively. Having a massive increase in ROI can also hurt the robustness of the ecosystem, resulting in a pump and dump scams. CSM creates a healthy mechanism that promotes real growth and real utility.

Let’s take a look at the usual amount of tokens staked for crypto-economies with onchain staking mechanisms. There are some top projects according to its prices, excluding projects with too many varied staking mechanism (e.g. supernode, secure nodes). There are not many successful models, since staking is still a relatively new mechanism for decentralised economies.

The percentage of tokens staked hover around 40–50%. The returns vary, and it correlates to the spot price of the tokens. Considering the average of 40% of CSM tokens staked, that gives a healthy return of 12.60%. That is similar to Zcoin and much more attractive than DASH and PIVX.

Looking at data from DASH, there is a positive correlation between the number of masternodes staked and price. As there are less masternodes, the prices fell. At CSM, the relationship is inverse. As there are less masternodes, the returns increase, resulting in more people purchasing tokens and staking it. As more people purchase the tokens, demand increases. As more people stake tokens, supply decreases. This results in a higher price of CSM, which is the inverse relationship.

About Consentium
Empowered by the community, Consentium is a revolutionary platform that bridges the gap between social communication and cryptocurrency. Our integrated cryptocurrency wallet allows users to send and receive CSM, BTC, USDT and ETH. Within the same app, users can chat with friends and explore different groups of like-minded individuals. By integrating a cryptocurrency wallet into our chat app, users can now perform your transaction without the hassle of leaving the app.

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比特币能够通过货币政策的成熟治理来达到去中心化的地位。比特币的货币政策独立于外部环境,并受代码约束;区块奖励减半,创建新区块的固定时间段以及间接地增加比特币的通货膨胀率。在上一篇文章中找到有关我们新的专有区块链, 嘉信公链的更多信息.





Annual ROI (Individual) : 年投资回报率(个人)

Total % Staked: 总质押 %













代币绝对有可能发行无限的被动收入,例如ZNN货币的投资回报率为300%。但是,这是不可持续的,因为代币供应的大量增加会对代币价格产生负面影响。 质押回报率的大幅增加也会损害生态系统的健壮性,从而导致拉高出货。 C币建立了促进真正增长和真正效用的健康机制。







网站: Consentium
Telegram 频道: Consentium Official
Twitter: Consentium
Facebook: Consentium
微信Wechat: gh_ef8940467b01



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Consentium is a revolutionary platform that bridges the gap between social communication and cryptocurrency. Visit