Energi’s Proof-of-Stake Model

A few days before,I have written an article about ENERGI (NRG) world. Now,its time to adapte to POS(ProofOfStake) model. Today I want to tell you about their new model.

Lets begin;

As they mentioned in their 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. In this article we 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 1,000 NRG and there is a collected total of 1,000,000 NRG being staked, multiply by 10% of the newly emitted Energi (100,000 NRG) to determine the monthly return:

(1,000 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:

https://www.energi.world/downloads