Felix Lutsch
Sep 14 · 3 min read

This newsletter is supported by Chorus One, an operator of validating nodes and staking services on Proof-of-Stake networks.

STAKE DISTRIBUTION AND DIVERSIFICATION
Token holders in Proof-of-Stake networks are tasked with determining the distribution of consensus power. Protocol builders usually try to design their systems to enable broad participation and to foster decentralization. But in the end, the distribution of stake among validators comes down to choices made by token holders.

This analysis on the Chorus One blog takes a look at data from the Cosmos Hub, one of the first live PoS networks, and focuses on whether staked accounts are diversifying among validators. Results show that about 75% of the 6,459 accounts that stake do so with a single validator. At the same time, these addresses only hold around 36% of staked Atoms. This shows that diversifying is more popular among larger holders, which is largely driven by well-diversified addresses such as that of the Tendermint team and the Interchain Foundation.

ETH2.0 CLIENT INTEROPERABILITY- Incredible progress on Ethereum PoS with 7 (!) different clients communicating with each other on a beacon chain testnet set up during an event attended by various implementation teams.

SPARKPOOL INTERVIEW — An insightful interview with Sparkpool CEO Xin Xu covering the 2nd largest Ethereum mining pools’ views and approach to the space, going into differences between mining in PoW and validating in PoS, Sparkpool’s approach to staking, as well as the landscape in China.

POLKADOT PARATHREADS — A new way to interact with the Polkadot ecosystem that allows decentralized applications to pay for throughput as it occurs as an alternative to having to lease parachain slots for an extended duration. Parathreads aim to serve as a cheaper option for applications looking to integrate with Polkadot that only require a low number of state updates.

LOOM BASECHAIN — A post laying out the plans for Loom going forward and covering details of the planned Basechain upgrade. This upgrade will increase the number of validators to 50, introduce slashing and a 5% minimum fee, as well as bring new incentives to stake, e.g. referral rewards and airdrops for stakers.

FLOW — Dapper Labs, the creators of CryptoKitties, announced Flow, “…a fast, secure, and developer-friendly blockchain built to support the next generation of games, apps, and the digital assets that will power them.” They also raised $11mn in funding to support Flow’s development. Investors include top-tier VCs, as well as media companies.

Flow is PoS blockchain that aims to scale without sharding. It will be interesting to see how Flow evolves, as Dapper Labs does have a history of shipping well received crypto products with a broader user base than most projects.

CASPERLABS SERIES A- CasperLabs, the company building the first blockchain platform utilizing the Casper CBC PoS algorithm raised $14.5mn in a Series A to speed up development.

CARDANO PUBLIC TESTNET — A post announcing the launch of a public Cardano testnet with staking and delegation later this year that will also feature real ADA incentives for participants.

NUCYPHER STAKING TESTNET — Chris learned at ETHBoston that NuCypher launched their first testnet with staking on Ethereum’s Goerli network. They also posted a request for feedback on a potential incentivized testnet.


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Staking Economy is written by Felix Lutsch from Chorus One with assistance from Chris Remus, operator of the Chainflow validators. Opinions expressed are our own and do not necessarily reflect the opinions of Chorus One. All content is for informational purposes only and not intended as investment advice.


Originally published at blog.chorus.one on September 14, 2019.

Staking Economy

A twice monthly recap of news and observations focused on Proof-of-Stake networks.

Felix Lutsch

Written by

Research Analyst @ChorusOne. Editor @StakingEconomy. @FelixLts.

Staking Economy

A twice monthly recap of news and observations focused on Proof-of-Stake networks.

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