Market overview
- You can find PoS list via link.
___________________________________________________________________
- Staking Yearly Yield is the annualized yield for staking at current supply levels, as calculated by stakingrewards.com.
- Real Staking Yield is the annual yield expected from staking, after accounting for the network’s inflation. Real Yield is calculated as the nominal staking yield adjusted for the inflation rate.
- Token Staking is the number of tokens currently staking on the network, as reported by stakingrewards.com.
- Network % Staking is the % of current circulating supply that is currently staking, using data provided by stakingrewards.com.
- 5 Years Yield is counted like compound interest.
Think & Stake
- Twitter user StopAndDecrypt tries to carry over the death spiral narrative to the staking context in a tweet: he claims that with lowering prices and dropping staking yields, stakers will stop staking and then sell their assets resulting in even lower staking yields etc.
- By staking a PoS token, a staker is receiving a part of the rewards, which counters the dilution through the inflation of the token supply. At the same time, staking means spending resources either to operate infrastructure or to outsource this work. In addition, depending on the jurisdiction, taxes on the rewards generated from staking need to be considered.
- GoSecurity article states: The use of staking in designing interactions among participants and with the platform provides the following benefits:
- It increases the utility of the token.
- It incentivizes users to hold a certain amount of tokens as balance if they want to get involved in the platform and perform value-adding activity. So, there is value in holding the tokens.
- It allows platforms to address the velocity problem because with every transaction, the circulation of tokens is increased. With higher velocity, the token price is pressured to fall, because there is an inverse relation between price and velocity. With the introduction of staking, not all tokens will be available for transactions. If it is required to stake, the staked tokens will be out of circulation with every transaction. With every transaction, the circulation of tokens is increased and as well as the staked tokens. This reduces velocity since due to staking, some tokens are held, while some tokens are being transacted. With the inverse relation between price and velocity, the reduced velocity due to staking prevents the price to fall.
- It incentivizes users to behave properly and correctly when carrying out certain actions on the platform in order to avoid losing their staked tokens.
- In cases where the participants’ staked tokens are burned for inappropriate behavior, staking indirectly affects the price of the token. The act of burning tokens reduces the supply of tokens, and assuming that demand is constant or increasing, the price of token will increase.
Latest Staking Update
Vitalik Buterin, ethereum’s inventor, has suggested an increase in rewards for stakers from circa 2.5% to nearly 6% assuming 10 million eth is staked. Buterin said: “An issuance increase is proposed based on community feedback, to 2**21ETH if 2**27 ETH is validating, along with an agreement to set the base reward quotient based on a pre-set max issuance bound once all protocol details are finalized.”
In addition they’re considering burning part of the fees to make transaction inclusion more efficient and primarily to ensure only eth can be used to pay fees rather than any other token.
The Polkadot blockchain will implement nominated proof-of-stake (NPoS), a relatively new type of scheme used to select the validators who are allowed to participate in the consensus protocol. A couple of times per day, the system elects a group of entities called validators, who in the next few hours will play a key role in highly sensitive protocols such as block production and the finality gadget. Their job is demanding as they need to run costly operations, ensure high communication responsiveness, and build a long-term reputation of reliability. They also must stake their DOTs, Polkadot’s native token, as a guarantee of good behavior, and this stake gets slashed whenever they deviate from their protocol. The system also encourages any DOT holder to participate as a nominator. A nominator publishes a list of validator candidates that she trusts, and puts down an amount of DOTs at stake to support them with. If some of these candidates are elected as validators, she shares with them the payments, or the sanctions, on a per-staked-DOT basis.
Galaxy Consensus is an efficient, secure, and practical Proof of Stake consensus protocol recently proposed in a paper published by Wanchain’s Research & Development team. It was designed to replace the original high-energy PPoW (permissioned proof-of-work) consensus mechanism and to officially open up Wanchain’s consensus mechanism to the wider community as a key step towards complete decentralization. The search for a secure and efficient consensus model has become a major research trend for many blockchain systems. Various models such as PoS, PoA, PoI, etc. have been proposed and debated by the research community. After careful evaluation, Wanchain has developed Galaxy Consensus as a Proof of Stake protocol since we believe that stake should form the basis for on-chain governance and development.
Market makers (MMs) that stake ZRX tokens — directly or by proxy — receive a liquidity reward that is funded through a protocol fee applied to every 0x trade. The fee is denominated in ETH and deposited into a staking contract. Fees are pooled within the staking contract over a fixed window of time, which we refer to as an epoch. At the end of each epoch, MMs that stake ZRX tokens collect a portion of the accumulated pool. The size of MM i’s liquidity reward rᵢ is determined by a liquidity reward function which takes the form
where zᵢ is the number of ZRX tokens staked by MM i, tᵢ is the reward pool contribution (in ETH) from orders originated by MM i, ẑ is the total number of staked ZRX, t̂ is total amount of ETH accumulated within the reward pool during the epoch, r̂ represents the effective reward pool value (can be less than or greater than t̂), and α is a weighting parameter set between zero and one.
Protocol fee distribution:
Fees are converted to USD using the ETH/USD exchange rate at the time of each trade. The data gives us a rough estimate for protocol fee values produced under the proposed model. While the protocol fee is less than $0.19 for 50% of trades, the sum total of all protocol fees equals $411,082. As more assets are tokenized on Ethereum and other public blockchains, we expect that trading activity could increase by many orders of magnitude.
- Mathias Glintborg published an article on Ontology network for businesses: Scalability and performance — “The choice of consensus algorithm and level of decentralization of the network governance have a great impact on performance. As Founder of Ontology, Jun Li, says, “There is no magic in high-performance, it is a conscious design decision of algorithm and number of consensus nodes”. For example, Bitcoin is considered to have the most widely decentralized governance because hundreds of thousands of miners help produce blocks through PoW (Proof-of-Work) and tens of thousands of full nodes to maintain the ledger. This results in rather low performance of fewer than 10 TPS. In contrast, networks that operate with quick state finality algorithms like VBFT and more centralized governance models can achieve higher performance. In the end, this is a design decision and Ontology is designed to accommodate real businesses that require high performance.”
- In ICON’s initial network design, public representatives (P-Reps) had the power to influence ICX reward rates. Recently, ICON Foundation decided to change the reward model to reduce the power of P-Reps. In the network’s current state, the ICX reward rate is a function of the percentage of network staked, and there are no other contributing factors. In this post, we’ll discuss how the ICX reward rate is calculated, along with the economic implications of a lowly staked network versus a highly staked one.
This is the relationship between the percentage of network staked and ICX reward rate. (Keep in mind this chart shows annualized rates per category of which there are three — Reps, EEPs, and DApps.)
A few key observations of the ICX reward rate.
- As % of network staked increases, the reward rate decreases.
- As % of network staked decreases, the reward rate increases.
- The reward rate per category ranges between 2% and 12% per year. Staking to all three categories results in a rate that ranges between 6% and 36%.
- Once % of network staked crosses above the 70% mark, the reward rate becomes fixed at 2% per category.
The following equation can be used to calculate the ICX reward rate.
- Fetch.AI’s staking model explained. Learn more via this link.
- Staking Rewards Update Week 27. Watch video by Crypto Dave.
- Wanchain Staking — Beta Testnet Live and TPS Increased to 1000+. 1) PoS upgrade — Major performance boost. First, the original PoW-based test network is transitioning to PoS. This lays the foundation for the team to eventually switch the consensus mechanism on the main network. The beta version of the testnet has doubled the speed of block production, which means that the transaction throughput of the entire network has doubled, marking a giant step forward in performance. They will see staggering increases in TPS upon mainnet launch versus current performance, as our lab results have shown upwards of 3000 TPS and the private network is showing 1000+ TPS. 2) New Testnet PoS-enabled Light Desktop Wallet — WARNING — This is still a testnet wallet. Do not send any mainnet tokens to this address. Remember how fun it was syncing the full node on your Wanchain desktop wallet? No more! They introduced all new desktop light wallet — Wan Wallet — with a modern, minimalist design and fast load time. In addition to the universal token transfer of our previous wallet releases, the new light wallet also provides an interface for PoS delegation (currently limited to the testnet).
- Cosmos staking on Poloniex. For this initial product offering, Poloniex and Circle have partnered with Infinity Stones, which is one of the industry’s leading blockchain infrastructure providers. Effective immediately, we will begin staking a portion of non-US customer ATOM with an Infinity Stones validator and pass rewards to customers on a daily basis.
