Proof of ownership (Proof of Stake, PoS) suggests that a person’s right to mine and check blocks with transactions is determined by the number of coins he owns, that is, the more bitcoins or altcoins the miner has, the higher his mining power is.
NEO is PoS cryptocurrency with smart contract support. This makes it the ideal starting point for launching decentralized applications and conducting an ICO.
NEO and its related coin GAS can be used to receive passive income, but it is necessary to keep them not on the stock exchange, but in the wallet. It should be noted that not all wallets are the same, so it is important to check in advance whether the selected wallet allows you to receive rewards in the GAS. Annual yield is 4−6%.
NEO differs from other cryptocurrencies in its indivisibility – it can not be broken up into parts smaller than 1 NEO (which, by the way, is the minimum amount for stacking). To understand the key differences between NEO and GAS, the following NEO analogy helps is the ownership share in the blockchain, while GAS acts as a “fuel” for this blockchain and gives the right to work with it.
Although Dash (DASH / USD) is not a cryptocurrency based on Proof of Stake, its master notes system allows owners to receive dividends. It is indistinguishable from classic PoS coins in this sense.
Profit is quite high – about 7.5−8.4%, plus the rise in price of the coin itself. The main disadvantage is a large initial investment. As of October 2018, at least 1000 coins are needed to create a master-node, and their total value is about 162 thousand dollars.
PIVX cryptocurrency (an acronym for Private Instant Verified Transaction, confidential instant verified transactions) appeared in 2016, branched out from Dash.
It allows the owners of tokens to start a workshop, for which 10 thousand PIVX are required for a total of about 12 thousand dollars, or to do simple stacking.
There are no minimum requirements for stacking, but the wallet must remain active. Masternodes PIVX brings about 5.5% per year, while ordinary holders get about 4.8%.
The PIVX Stacking Guide is written in sufficient detail, so it is great for beginners. The team also does not hide the random factor inherent in stacking. It is often compared to a lottery in which the number of coins is equivalent to the number of lottery tickets.
The algorithm of the delegated PoS is somewhat inferior to the classic Proof of Stake. Users vote with their LSK tokens for delegates. Blocks are created by delegates (a total of 101 people) who have scored the maximum number of votes. Selected delegates receive all rewards for stacking. However, nothing prevents them from sharing dividends with the users who supported them.
Since the share of deductions is determined by the delegate himself, it can vary widely from 6.25% to 100%. Due to the somewhat confusing process delegated by PoS, users are advised to read the relevant manuals first and go to the Lisk Nano wallet.
Although there are no technical limitations on the amount of LSK required for voting, each vote costs 4 LSK. Therefore, it is recommended that only users with a 200 LSK in a wallet (preferably more than 500 LSK) participate in elections – this will minimize the proportion of costs and get a good income. Currently, the cost of a single LSK token is about $ 2.9.
The latest generation of VeChain Thor aims to be the platform for developing decentralized enterprise-level applications. All the developers’ efforts are aimed at pushing Ethereum in second place.
VET holders receive THOR tokens as a result of stacking, just as NEO owners receive GAS. There are no stacking minima and some exchanges even support the generation of THOR for VET stored in their wallets. Stacking yield is relatively small – about 1.68%, although for 10,000 VET you can become the owner of a master nod.
The Ark project is unique in that the development team does not position it as a universal and comprehensive cryptocurrency. Rather, ARK is designed to achieve a specific goal. The project aims to integrate various blockchains using SmartBridge technology. It works as a smart contract that can be performed on various blockchains with completely different protocols, for example, on bitcoin and ether blockchains.
The Ark project also differs from its counterparts in its algorithm delegated PoS by the Lisk type (in fact, Lisk is a direct descendant of Ark). Thus, users do not directly participate in the stacking. Their coins allow you to select 51 delegates who will then share the rewards with the users who have supported them.
While the average share of ARK deductions is about 10%, some delegates pay up to 90-100%. In other words, almost all dividends for stacking go to voters and are distributed depending on the number of votes.
One small detail regarding the election each wallet can vote for only one delegate. This is done specifically to prevent potential centralization of the electoral system.
If a voter, for example, stores in his wallet 1 million ARK, he will have a million votes, but he can give them only for one candidate. He will have to divide the cryptocurrency into two purses to vote for two, each of which will receive half of the votes.
Again, this was done to prevent the major holders of ARK from voting for a certain group of delegates and potentially gaining control over the blockchain.
KuCoin Shares are tied to the popular centralized cryptocurrency exchange KuCoin. This site from Hong Kong daily distributes 90% of the collected commissions among KuCoin holders, changing the traditional model Proof of Stake. However, the process can not be called stacking – rather, simple storage.
KuCoin pays dividends to owners of KCS tokens in exchange for storing them without any minimums. The subtlety is that it is rather difficult to calculate the average yield, since the amount of collected commissions varies from day to day and the amount of dividends depends on the number of KCS coins.
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