Energi's Proof-of-Stake Model
A High-Level Summary of Energi’s POS and How it Stacks up Against Other Cryptocurrencies with POS
As we mentioned in our last article, The Consensus Mechanism Algorithms of Energi, cryptocurrencies rely on consensus algorithms to reach agreement among nodes within the blockchain network and those who validate a block receive a reward. Proof-of-Stake (POS) models use a simple method to help secure the blockchain network. To become a contributor or validator, a participant must lock up (or stake) a number of coins or tokens into the blockchain. The amount being staked will determine the participant’s chances to have their block included and claim a reward. Energi (NRG) will soon be transitioning to a POS consensus model, which will allow for a far easier method for participants to earn Energi. This article will capture Energi’s POS model at a high-level and compare it to other top cryptocurrencies with POS.
Energi’s Proof-of-Stake Complexity
Like many POS cryptocurrencies, participants will be able to stake Energi in the Energi Core Wallet. Once Energi is stored within the wallet, participants will then unlock their wallet for staking and leave their wallet connected to the Energi blockchain network. As long as the wallet remains unlocked for staking and connected to the network, participants will be rewarded Energi. Considering Energi’s POS model is relatively easy to set up and earn rewards, this will attract many users who don’t have the expensive equipment to mine or the large amount of Energi needed for a masternode, to earn rewards.
Energi’s Proof-of-Stake Reward Rate
Energi’s POS will distribute 10% of the newly emitted Energi per month to stakers. To determine how much Energi participants can earn when staking, let's use the following numbers as examples. If a user is staking 5,000 NRG and there is a collected total of 1,000,000 NRG being staked, multiply by 10% of the newly emitted Energi (100,00 NRG) to determine the monthly return:
(5,000 NRG / 1,000,000 NRG) * 100,000 NRG = Monthly Return
That is an astounding 120% yearly return. This is arguably the largest rate of return any cryptocurrency has to offer to stakers.
To see how much a single Energi participant can earn, let’s use an example and compare the potential return against other cryptocurrencies. Given the example we used above (1,000,000 NRG staked collectively), let’s breakdown how much the return will be if someone had a $1,000 investment for each of the following POS cryptocurrencies:
As we can see from the table above, Energi’s POS model is far superior to any other cryptocurrency’s POS model within this space.
Conclusion
Other than Proof-of-Stake’s energy efficient benefits, the reduction of centralized risks from miners and it’s flexible design, Energi is looking to become a lead cryptocurrency that provides users with an effortless and innovative experience on earning rewards.
To prepare for our transition to Proof-of-Stake, download the latest version of our Energi Core Wallet by visiting the link below:
The question is will Energi be able to hold its value. It’s not looking good based on the past few days.
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It's unfortunate to what happened to Cryptopia, considering it was one of our few exchanges that provided good volume. We are of course looking into being listed on more exchanges that will be accessible to large amounts of users, we are working with many respected influencers in the space to get Energi out there and noticed and we are working on creating a platform that will be more user-friendly to the masses, hence the transition to Proof-of-Stake. We are laser focused on accomplishing our goals and we appreciate the continued support we receive from our community. We're not going to let them down.
Energy is growing well. I love Energy.
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