Staking Rewards Stack Up as NewsCrypto Giveaway Commences on Pool-X

By June 16, 2020Ethereum
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  • Pool-X is giving away thousands of NWC tokens for eligible users.
  • Proof of Stake blockchains are showing a fast progress and a growing demand in the enterprise sector.

Supporters of nascent crypto networks have a plethora of choices when deciding where to pledge their assets in return for yield. One popular staking pool, Pool-X, has introduced a new incentive program in tandem with cryptocurrency exchange KuCoin. A trial fund for NWC, the native token of NewsCrypto, has been made available for Pool-X users, with millions of tokens up for grabs.

NewsCrypto is best known for the educational program it runs for crypto newcomers, culminating in a KuCoin-awarded diploma upon completion of the program. NWC tokens play a key role in the trading and educational portal, where they can be used to unlock memberships and access advanced trading tools.

Pool-X Makes It Rain NWC

Pool-X is a KuCoin-affiliated staking provider. Its staking-as-a-service option gives holders a fixed return on assets such as EOS and KCS without the need to spin up a node or get their hands dirty configuring a dedicated server. An example of how this plays out can be seen in Pool-X’s latest trial fund. Tens of millions of NWC tokens will be given away to pool users, with 10,000 NWC in trial funds eligible to each user who holds at least 1,000 NWC in their Pool-X account.

Such initiatives give stakers the opportunity to familiarize themselves with the workings of fledgling crypto networks, while providing an incentive to lock up their assets, removing the temptation to sell them at the first sign of trouble. Should these networks then reach critical mass, the rewards for having hodled through thick and thin ought to be handsome. But even if these emerging blockchain protocols don’t prove to be the next Ethereum killer or defi dominator, the added rewards for early participation in programs such as Pool-X’s NWC trial fund provide a short-term incentive to get involved.

Operating on the Stellar network, NewsCrypto’s NWC is programmed with a deflationary model in which 20% of the tokens put towards membership fees are burned, reducing the total supply over time. The token is currently available on exchanges such as KuCoin, HitBTC, and ProBit.

Staking Is Sharing

Proof of Stake (PoS) blockchains require users to lock up their assets for extended periods. This demonstrates that stakers have a vested interest in the network’s rules being maintained, and are willing to act ethically. Of course, most stakers are less interested in upholding consensus rules and more concerned with the yield they can earn on their holdings. This is dispensed in the form of staking rewards, but it’s not the only way in which interest can be earned. Through connecting staking pools to exchanges, the locked up liquidity can provide an additional return to token holders.

Holders of leading crypto assets such as BTC and ETH, as well as the long tail of less liquid tokens, have a greater choice than ever when it comes to yield. They can lock assets into lending protocols, serve as market makers for decentralized protocols and earn a share of the fees, or provide a similar service to centralized exchanges.

When It Comes to Staking, Holders Are Spoiled for Choice

Securing liquidity is a constant struggle for exchanges. Too little of it and traders will go elsewhere; too much of it and exchange profits are eroded in paying liquidity providers for market making. Crypto exchanges have traditionally obtained liquidity from investment funds, institutional investors, and HNW individuals a.k.a. whales.

Staking pools – platforms that automate the process of staking crypto assets – are locked in fierce competition for market share. The number of platforms that provide staking as a service has multiplied in the last 18 months, including crypto exchanges that have muscled in on the action. As a result, the amount of staked assets held on exchanges now dwarfs that controlled by dedicated staking pools.

The emergence of staking pools that disburse supplementary rewards, over and above those dispensed by the base layer, means token-holders seeking a regular ROI are now spoilt for choice. Pool-X’s NWC giveaway is merely the latest example of this strategy in action.

Last updated on June 16, 2020

Proof of Stake blockchains are showing a fast progress and a growing demand in the enterprise sector. […]

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