What do you think of the zero-fee staking service of the exchange?
How should we look at several important issues in the future development of the PoS network? Stakefish shared the following 5 main points of view in an exclusive interview with Staking Reward a few days ago:
PoS network decentralization measurement indicators can be preset in the token economy;
Exchanges are unlikely to offer the best staking yield;
PoS network can effectively ensure security;
The base layer protocol should focus on connecting to Ethereum to make full use of DeFi projects;
Choosing a strategy to guide demand will determine whether the protocol can survive and develop in the long run.
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What is the best way to ensure and incentivize further decentralization of the staking ecosystem?
The first and most important step is how to define decentralization. Each network and its community members may have very different definitions and goals for decentralization. Such distinctions can lead to arguments rather than constructive, forward-looking discussions. When a soft goal is achieved or some consensus is reached among community members, we are one step closer to a decentralized ecosystem.
One mechanism design that is gaining support and potentially applicable to all staking protocols is "proportional slashing". The core idea is to slash a higher proportion of nodes that are offline during the same period of time. Introducing this mechanism has three advantages:
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What do you think of the exchange’s zero-fee staking service? Is this a real risk to the network?
It is encouraging for exchanges, custodians, and funds to actively participate in staking, which will ultimately improve the security of the PoS network. There is no way for people to prevent these participants from expanding their business into the staking field. We should guide them to actively participate in the staking field. As for how to set the handling fee, it depends entirely on the participants themselves.
For those who are worried that exchanges will seize the entire staking market, we can think about it from the following two points:
First of all, there are always quite a few people in the community who cherish the credo of "not your keys not your coins" only if you have the private key, and zero transaction fee is not enough for them to give up the real ownership of the tokens.
Second, even without fees, exchanges are unlikely to offer the best staking yield. The exchange has daily withdrawal requirements, and some tokens will also be put into cold wallets for security reasons. These considerations will affect the user token staking ratio, which will further affect the final staking income received by the user.
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What is the main difference between PoS and PoW? Why do basically newly released blockchains have a PoS mechanism?
The biggest difference is that the threshold for PoS to participate in maintaining the network is lower. Mining under the PoW consensus has already been industrialized. Those who seriously think about deeply participating in mining need to buy ASIC mining machines or other mining hardware, find the cheapest electricity, achieve good connections with other nodes, and integrate with existing mines. pool to cooperate. Solo mining has largely become economically unviable.
On the other hand, in the PoS network, anyone can participate in staking. Although in most cases, token holders may need to participate through verification nodes, many verification nodes have extremely low transaction fee rates, which are insignificant compared with the cost of participating in mining.
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Staking and DeFi coexist, what are your thoughts on the future of such a market?
We are really excited about the rapid development of DeFi. The different stacks of DeFi will make staking more capital efficient. We will see related derivatives to alleviate the impact of the lock-up period on staking liquidity, insurance products to reduce the risk of slashing, some swap transactions to lock in the rate of return of staking, and so on. These are just some of the examples, and we hope that DeFi and staking can have interesting synergies.
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What do you think are the most exciting projects expected to be released in 2020?
There are so many, we think these projects are very exciting:
Ethereum 2.0, Cardano Shelley mainnet, Polkadot, Solana, NEAR, Coda, Oasis, Casper Labs, Celo, NuCypher, SKALE, Edgeware, Centrifuge, Matic, Harmony, Elrond, and more.
Given the number of planned releases, we are closely monitoring how each project plans to increase demand for the protocol itself. What kind of strategy is used to guide demand will ultimately determine whether the agreement can survive and develop in the long run.
