BRIDGECOIN EVOLVES: LONG-TERM THINKING IS REWARDED

Interview by @lordcatoshi

CryptoBridge is a decentralized exchange in the hands of Bridgecoin holders. This means holders of bridgecoin have a say and literal stake in its success. Rewards are paid out proportional to stake size, and recently the reward model was adjusted a bit so I decided to ask the CryptoBridge team how the new reward model works. Below you can see their answers to my questions.

Can you briefly describe what bridgecoin is?

BridgeCoin (BCO) is an interesting cryptoasset which cannot be compared on the whole to anything else. It began with being mined by the community and developers to fund the launch of CryptoBridge in 2017. Once the full supply had been created (after around 6 months), it was able to be placed into a vesting balance on BitShares, which is referred to as staking but doesn’t provide any security/consensus mechanism for the chain. Staking is designed to provide a revenue sharing aspect to users of CryptoBridge. Future plans to construct a Federated Gateway system of deposits onto CryptoBridge will likely use BCO as collateral. We are also considering its use as a way to demonstrate commitment to the community which may also confer other benefits.

Why would an investor stake bridgecoin?

Staking provides the user with a share in the revenue generated by trading fees. This is a simple way to generate an income in BTC without actively trading, and is designed to be appealing to new users and traders of cryptocurrency, although anyone who enjoys diversification into alternative types of risk/reward is likely to consider staking. BCO stakers are acting on the belief that the long-term value proposition of CryptoBridge is an attractive one and that trading volume will increase in coordination with its growth over time.

What do the incentives for staking bridgecoin look like?

Staking is intended to reward the long-term investor, as we believe that quality and sustainability cannot be based on short time frames. We would like to influence the culture around cryptocurrency to focus on longevity rather than short-term gain as we have seen all too often with pump-and-dump schemes, theft and scam projects. Payouts are twice per month in BTC (and a small amount of BCO itself), both of which are proportional to the traded volume during that period, by how many coins have been staked and which period of time was selected.

How does it differ from the traditional staking policy?

BridgeCoin staking is purely about capital lockup and has nothing to do with proof-of-stake consensus. We realized that this is somewhat confusing so a special blog was created to explain the details. We are also unaware of any other staking mechanism that pays out in BTC. Every payout is accompanied by a report of that period’s payout activity.

How is the new staking policy more beneficial for stakers?

Recently the staking incentives were increased for ever-greater periods of time. Our goal with CryptoBridge is for long-term stability and of partnership with our users. While short-term preferences may be those of our most active traders, we hope to encourage those that would instead consider themselves investors to use this incentive increase to communicate just how serious we are about sticking around and becoming an important part of the cryptoasset landscape.

Thank you for reading. I have a lot of fun learning about new projects. I hope you have read the interview with pleasure and learned something from it. Feel free to share it on social media. If you want to learn more, click on the links in the article.