Proof of Burn 🔥 … Koinos Koin up over 57,800 % this year

Are you collecting your Free Koin tips over on Koinos ?

Koinos: https://koinos-social.vercel.app/

It’s been a good year for Koin.

I wonder why ??? 🔥 🔥 🔥 🔥 (Proof of Burn)

I think 57,000 % return is pretty good.

Chart : https://coinmarketcap.com/currencies/koinos/

PROOF-OF-BURN IN $KOIN BLOCKCHAIN

Proof of Burn is a consensus mechanism used in blockchain networks, and it operates on the principle of participants "burning" or destroying cryptocurrency tokens to gain certain rights or benefits within the network. Here's a breakdown of how it works:

Token Destruction: Participants voluntarily send their cryptocurrency tokens to a verifiably unspendable address, @null effectively removing them from circulation. This act is known as "burning" the tokens.

Virtual Hash Power: By burning tokens, participants gain virtual hash power or some form of influence within the blockchain network. This influence can be used for activities such as validating transactions and participating in the governance of the network.

Running Nodes: With the acquired virtual hash power, participants can run validator nodes, contributing to the consensus process of the blockchain. This is crucial for maintaining the integrity and security of the network.

Incentives: The proof-of-burn mechanism often provides incentives for participants who contribute to the network. This can include receiving newly minted tokens, transaction fees, or other benefits tied to network participation.

Security Measures: Proof of Burn introduces a unique security measure by making it economically costly to attack the network. Since participants need to sacrifice tokens to gain influence, attempting malicious activities becomes financially impractical.

Inflationary and Deflationary Forces: Proof of Burn can create a balance between inflationary and deflationary forces within the cryptocurrency's economic model. It offers a dynamic equilibrium that aims to optimize long-term value creation and network efficiency.

Efficiency: Unlike traditional proof-of-work mechanisms that require significant computational power and energy consumption, proof of burn can be more energy-efficient. Participants are incentivized to run their hardware efficiently since they don't need to perform resource-intensive proof-of-work calculations.

@andrarchy

Source : https://x.com/CryptoZoroo/status/1733552460281647183?s=20