Launched in August 2019 as a subsidiary of the kucoin exchange,the pool-x is a revolutionary staking pool that supports crypto lockups,liquidity mining and lots more.
Overview
One of the unique features around cryptocurrency transactions is the fact that transaction confirmation is done by a community of those with vested interest in a decentralized manner as against centralized fiat system with banks and others. Before bitcoin,coming to consensus on a distributed network was hard due to the constraints of it lacking incentives and it be permissioned,bitcoin appearance on the scene changed all that,node operators can now receive financial reward for network contribution. Bitcoin is a pioneer in the decentralized consensus arena but there are other concerns over the effects of Bitcoin and other coins that utilizes the proof of work consensus mechanism. It’s energy intensive,one has to get electrical energy in volumes and at a cheaper price plus computational heavy equipments like ASICs. At the end of the day,Proof of Work mining is not advantageous for the following reasons:
- the effect on the environment: The electronic waste disposed as a result of hardware is enormous,secondly the carbon emission is alarming.
- it’s not reusable : Miners racing to find the nonce of a transaction is very computationally expensive and the sad part is that such work is not recyclable or reusable.
- cost : Proof of work mining is most times for those with deep pockets,it’s only profitable if one has the resources to invest in an area with cheap electricity,buy lots of hardware and hire a professional team to monitor your work.
Sunny Aggrawal like every other person saw the constraints of Proof of work and decided to do something about it,he invented the proof of stake consensus mechanism. With proof of stake,users only need to own and stake a minimum amount required to be able to validate blocks in a network.
In simple terms,it says if Alice wants to contribute to the security and transaction validation in X blockchain network,Alice needs to own and stake(bond) a minimum amount of X coins in order to be eligible to be considered among the pool of those who will picked for such function.
How much tokens one owns and have staked determines how much transactions they are capable of validating,so if Alice owns Y percent of coins of X blockchain,she can only validate Y percent of X blockchain transactions. The proof of stake method is easier to setup,does not require much running cost,it consumes very minimal electrical power and many blockchains are currently transitioning to it.
Proof of work is computation power dependent while proof of stake is economical power dependent
But proof of stake also has some problems like:
Cost : It is cost most times to set yourself up as a staker in a network. As we already know that you can only be able to validate Y% of transactions in X blockchain if you have Y% of X blockchain coins,so in the long run it most those at the lower pyramid of stakers by amount staked will get little to nothing.
It’s like a company where a party owns 10% stake and another owns 0.1% stake,the former has more financial and governance power over the latter.
Illiquidity :The next thing is the illiquidity of staked tokens,while it’s good that stake coins are removed from the circulating coin supply for the time being they are staked which causes scarcity that may ultimately cause a price surge in the coin,we cannot trade those tokens in the market and that poses a problem.
Pool-X
Pool-X is a staking pool service that pools different users coins together,stake them for a better chance at staking rewards. It offers trading,staking and mining activities.
It utilizes a Liquidity Evaluation System(a real time profit evaluation and POL allocation based each individual users stakes),Liquidity trading market(the option to trade a staked contract),Node supermarket(connecting multiple coins with single/multiple nodes),node integration services(a node or pool as a service) and a multi currency wallet that users can use to receive,send and store different cryptocurrrencies. Users can enjoy up to 12% per annul on staked coins as well as the mining rewards in form of POL tokens.
Liquidity certificates
It represents ownership of a certain amount of staked tokens and can be traded with others in order to receive the tokens. When a user buys a liquidity certificate from another user on the Pool-X platform,he owns the staked coins and the rewards that will accrue to the staked coins from the subsequent period(months,weeks,day,hours) after the contract purchase.
This is the unlike the traditional staking market that requires a minimum time for unbonding,users will have to wait for days if not weeks before they can redeem their staked assets.
POL token
It’s an TRC-20 token that is used for liquidity bidding on the Pool-X platform,it’s also used in scoring and rewarding users who provide liquidity and storing and validating transaction certificates across various chains. The POL token will be the single asset for exchanging liquidity certificates.
Website : https://pool-x.io/
Twitter : https://twitter.com/pool_x_official
Telegram : https://t.me/PoolXOfficial
Bitcointalk Profile Link :https://bitcointalk.org/index.php?action=profile;u=1265642