Top 10 POS coins 2019 by ROI with minimum $1M daily volume
By Inkarias - 2019-11-26
In our last TOP article, we had introduced the top 5 of DPoS projects ordered by marketcap. Today, we are bringing a new top with, this time, the TOP 10 POS projects with innovative staking features and reward schemes and high daily volume: Icon, Loom Network, IOST, Aion , IrisNet, Nuls, Algorand , Decred, Iotex and Cosmos. All these projects offer different possibilities to build a passive income within the crypto sphere.
ROI extracted according to stakingrewards.com statistics (November 23, 2019)
ICON - $65,7M Marketcap | 19% ROI
Invented in South Korea, ICON is a blockchain ecosystem based on a technology called loopchain, developed by ICONLOOP. The goal of ICON is to hyper connect the world. To do this, ICON connects with different independent blockchains with their own governance and community so they can interact. This inter-connected network is called ICON Republic. With Icon republic, it’s possible to create your own community and your own chain of blocks with custom parameters to meet your own personal or business needs. The connection with ICON Republic is then provided by Nexus representatives and ICON C-Reps (nodes representing the community), allowing the connection between the different independent blockchains within the ICON network.
Through the DApps, ICON is also fully compatible with traditional blockchains such as Bitcoin and Ethereum, but also with other blockchains who would like to be part of the network. The ICON protocol offers other benefits, including decentralized governance, the ability to create contract smarts through a feature called SCORE, and delegated proof-of-contribution (DPoC), a variant of the Delegated Proof of Stake (DPoS) model, through which Token holders can earn additional ICX based on inflation.
ICON staking features via DPoC and multiple allocations
ICON is a blockchain based on Proof of Stake in which the protocol directly rewards nodes and delegates with newly created ICXs. The distribution of ICX is carried out via the ICON Incentives (IISS) rating system and is managed transparently. This system uses an innovative AI tool developed by DaVinci, one of the largest AI providers in South Korea. One of the innovative aspects of the ICON protocol is the fact that it can stake its ICX tokens at different stage of its ecosystem. With the POS model, ICX owners can support the decentralization of the network and earn interest with their tokens.
With ICON, you have the possibility to assign your ICX voting rights to a representative (P-Rep, DApp and / or EEP) and earn more ICX based on the size of your stake. Staking on ICX is not custodial, which means you do not need to transfer your coins. However, it requires you to lock your ICX for a short period, 5 to 20 days depending on the staking percentage. The more people use their tokens for staking the longer the unbonding period will be, but the lower the interest rate will be. If nobody uses their coins for staking, the unbonding period will be at 20 days and the interest rate will be around 12%. On the other hand, if more than 75% of the ICX coins are used for staking, the unbonding period will be only 5 days and the interest rate will be around 2%.Indeed, one of the significant advantages of ICON network is the fact that you can delegate your tokens to the three different types of participants in the ecosystem (P-Rep, EEP and Dapp) in order to cumulate the interest rates. If for example you have 1000 ICX tokens, you will be able to use your 1000 tokens to stake to 3 different types (1000 to a P-Rep, 1000 to an EEP and 1000 to a Dapp) and thus collect 3x the interest for your 1000 tokens. In short, let’s look at the 3 possible types ( The total possible yearly ROI ranges from 6% to 36% depending on situation):
- P-Rep (Public representatives): The main role of a P-Rep is to maintain the secure, decentralized network, validate blocks and verify transactions. In addition, P-Reps also have the responsibility to vote within the governance system and participate in ecosystem efforts through community building and / or new product development.
- Dapps (Decentralized Apps): In addition to traditional incentives, Dapp's developers on ICON will receive a portion of the block rewards based on the staking votes and tokens they received from the community. With the ICON 2.0 fee policy, the creators of DApps also can remunerate their users with the transaction fees associated with using their app.
- EEPs (Ecosystem Expansion Projects): EEP encompasses projects that contribute to the expansion of the ecosystem. (block explorers, portfolios, etc). In that way, Any ICON community member has the possibility to create an EEP. An EEP allows to receive delegations and thus the rewards related to the validation of blocks.
Loom Network - $16,6M Marketcap | 17% ROI
Loom Network is a blockchain-based platform designed for large-scale applications and games. The platform was developed to prove that blockchain applications are not limited to transactions and thrive to improve Ethereum possibilities. The platform allows developers to run their own large-scale DApps, including social apps and games. It does not require knowledge of any programming language and applications can be developed even in common languages on the platform.
The main product of the Loom Network is a Software Development Kit (SDK) that allows developers to build their own blockchain without the need for any blockchain development knowledge. This is basically a blockchain builder. The Loom network SDK generates a DAppChain, an overlay of the blockchain using Ethereum as a base. DAppChains are full blockchains that work in tandem with Ethereum's smart contracts. The SDK is fully customizable and allows developers to build their DApps in any language. Developers can create their own DAppChain from scratch, selecting each aspect, from the consensus mechanism and their own sets of rules. Scalability is ensured using rules such as delegated proof-of-stake (DPoS).
Loom “BaseChain” DPOS and SDK staking
The Loom network offers a great way to earn a passive income through a DPoS model. Basechain (formerly named Plasmachain) is a high-performance DPoS sidechain that acts as a bridge between multiple chains, with integrations to Bitcoin, Ethereum, Binance Chain, Tron and more currencies coming soon. It supports EVM smart contracts and offers sub-second confirmation times for high-performance dapps. The platform allows any LOOM token holder to become a delegator and support validators in securing Basechain.
Furthermore, Basechain validators need to run and maintain the server hardware that processes all the transactions on the chain. They ensure the health, performance, and full security of the entire network. The validators have been chosen among a lot of candidates. We can quote Mythos, Bitfish and Shipchain as some examples for current delegates in place in the loom system. In order to stake on the platform, users must select their wallet from the available connection options: MetaMask, Ledger, Trezor, and WalletConnect , then deposit the LOOM tokens to Basechain and choose a validator to delegate to. The percentage of ROI depends on the different validators’ options for the Basechain case. However, for all the external Dapps built with Loom SDK, the ROI is based on the custom settings implemented by the DApps owners.
V-Systems - $93,7M Marketcap | 14% ROI
V-Systems and the innovative Supernode Proof-of-StakeVSYS uses a completely new consensus algorithm called SPoS, created by the inventor of the original PoS, Sunny King (Sunny King is the creator of Peercoin, and thus, the creator of proof of stake systems). This algorithm incentivizes supernode minters to constantly upgrade and optimize their hardware to improve their overall performances. All the details regarding this model and how to stake can be found on our previous review at:https://mastersofnodes.com/re-architect-blockchain-v-systems-review/
Kava - $10M Marketcap | 13% ROI
Kava Labs, a Cambridge, MA and San Francisco, CA-based company provides Interledger solutions for blockchains, wallets, and exchanges. Their solutions enable users to send and receive near-instant transactions, make cross-currency payments, and access liquidity on-demand. Kava is a decentralized platform (DeFi) that currently offers secured loans and guarantees to users of major cryptocurrency assets. At present, more than 100 companies worldwide support this innovative DeFi platform.
According to the company, Ondulation and Cosmos already actively work with Kava. The platform works with two different tokens, one of them is called KAVA and is used for governance and staking. It allows users to secure the network and vote on different issues. Meanwhile, the USD Stablecoin is protected by a cryptographic asset guarantee and updated by algorithms. This DeFi platform has many features that make it a unique project. One of these key features is the support of credit against cryptocurrencies operating on different networks. Some of these assets include Bitcoin (BTC), XRP, Binance Coin (BNB) and ATOM.
Kava is built on the Cosmos platform by exploiting its most valuable features. Another feature is "no-reward" loans. The platform allows users to auto-issue loans and strike a new USDX. The user must have a guarantee on this loan. The USDX created is then destroyed when the user closes his debt. The Kava POS model is like Dai in many forms.
Kava DAI-like POS Model explained
The concept of Kava is like MakerDAO, and its Dai stablecoin, using a Collateralized Debt Position (CDP) model for multi-collateral leverage, stability, and general governance. Kava is a PoS blockchain built on Cosmos, with its own native KAVA token that is deployed in its governance model along with its multi-collateral backed USDX stablecoin. The Kava blockchain is completely secured by Proof-of-Stake consensus and has a native token for securing the network called the KAVA token. KAVA tokens represent the ability to secure and participate in the governance of the Kava blockchain. Token holders can stake their tokens directly, or delegate them to a staking service provider. Staked Kava tokens can participate in the governance of the system, including deciding what types of collateral the system supports and how many stablecoins the system can create.A deflationary and inflationary asset: Users on Kava lock their cryptoassets as collateral and accrue fees on any USDX stablecoins they draw. These fees are paid for in Kava tokens and burned. During normal times, Kava users will close their positions and pay for the fees in Kava, resulting in a deflationary event for Kava tokens. If system becomes under-collateralized due to a crash in the value of collateral, KAVA will be minted and sold for USDX until the required collateralization ratio is fully restored to normal.
IOST - $58M Marketcap | 12% ROI
IOStoken revolves around the Internet of Services and aims to provide a solid infrastructure for new online service providers. The team behind the project has focused on delivering a high TPS rate, and creating a highly scalable, private and secure blockchain. They also like to claim that the IOS (Internet of Service) blockchain is a secure, scalable blockchain that works. The team also promises that the IOS platform can handle up to 100,000 transactions per second, which puts it way ahead of many of the more established blockchains such as Bitcoin and Ethereum. IOStoken did not perform an initial coin offering (ICO) and raised funds through private sales to institutional investors.
IOST provides a complete framework with Smart Contracts, Dapps (Decentralized applications), Data storage, and voting & feedback systems. Smart Contracts can be developed using any mainstream programming language, which really bridges gaps between concept and adoption. IOST introduces several new concepts with their Blockchain, such as EDS, or Efficient Distributed Sharding. Their goal is to offer a solid infrastructure for online service providers in all fields with a ultra-high speed (up to 100,000 transactions per second), scalable and secure solution. Efficient Distributed Sharding is IOST's solution to the scalability issues seen in the Blockchain networks of other cryptocurrencies. EDS uses dynamic partitioning of the IOS network, into sub-spaces via a secured, bias-free stochastic process. EDS is a Sharding scheme intended to make Shards sufficiently large and biasresistant. This works using Client-server randomness scavenging mechanism and leader election via Cryptographic Sortition
IOST Proof of Believability model
IOST's consensus algorithm is called Proof-of-Believability, uses a Byzantine consensus protocol with a "Believeable-First approach" and is a similar process to Proof-of-Stake. The issues with Proof-of-Stake Blockchain's is that it runs the risk of becoming centralized, with a few large players holding a large portion of the coins. Proof-of-Stake also has the nothing-at-stake-problem with dishonest nodes transmitting dishonest data without having any coins at stake.
Proof-of-Believability is intended to solve these problems, while still providing passive-income opportunities using your coins as transaction validators. Proof-of-Believability aims to guarantee that Nodes have a negligible probability to misbehave, when in combination with Shards will provide a high transaction output by size-one-shard. One of the things which sets this protocol apart from Proof-of-Stake is their Believe-First approach. The protocol divides all Validators (Coins) into two groups, a believable league and a normal group. The believeable league processes transactions quickly the first phase. Afterwards the normal group sample and verify transactions in a second stage to ensure security. The chance a node has of being elected into the luxurious believeable league is determined by its believeability score, sort of your established reputation( scored in points). This street cred (believeability score) can be acquired in several ways: tokens holding, contribution to the community, reviews etc.
In the IOST PoB consensus mechanism, the block production committee has 17 seats, which are changed every 10 minutes. The 17 nodes with the highest Servi are selected for the committee in each round, and then take turns to produce blocks and claim rewards. Each time a node is selected to participate in block production, all committee members consume Servi. Therefore, the unselected nodes will have more Servi and will have a greater chance of being selected for the committee in the next round. Under this mechanism, there may be hundreds of different nodes selected for the committee each day.In the PoB mechanism, the entry barrier to becoming a candidate is lower than other DPoS networks, therefore more community members are able to participate. To become a candidate and to ensure network safety, PoB has an entry barrier for block producer candidates set to 0.1% of available votes on the network. When a node has received more votes than the threshold, it can then send a specific transaction to become a candidate and participate in the committee formation and block production process.
Aion - $23M Marketcap | 11% ROI
Aion is a canadian blockchain and multi-level platform focused on interoperability between other blockchain. The AION currency is used for value and data exchanges, allowing a smart contract network to look like Ethereum and NEO. Using a combined algorithm of Byzantine fault tolerance and proof-of-assignment, combined with intelligence evidence powered by a neural network, Aion wants to be the element that unites all blockchains. Aion is a blockchain platform that enables developers to create production-grade Java apps on a blockchain network. The primary goal of Aion project is to make Blockchain technology accessible for everyone and accelerate its integration. The Aion Network is about transparency: the key feature for solving issues of privacy, security, and scalability. The platform allows private organizations to:
- Share data and values between any Aion-compatible blockchains and Ethereum.
- Ensure faster operation processing and higher data capacity for all Aion blockchains.
- Create public or private blockchains that support compatibility and the ability to work with other blockchains, while allowing publishers to choose management, consensus mechanisms, regulate output and participation.
What makes Aion stand out from the crowd is the Aion Virtual machine: the first blockchain virtual machine for Java developers in the world. Created on the top of Java Virtual Machine, it provides the whole set of tools for devs and makes blockchain programming way more accessible.
Open Application network (OAN) staking for Aion holdersThe OAN is a public infrastructure that creates a new design space for Open Applications. Open Apps are programs that put users back in control and are universally accessible across platforms. Using Open Apps, developers can hook into existing platforms like Uber, Shopify, Twitch and create new innovative experiences.In Aion ecosystem, delegation is a trustless mechanism available on the OAN for Aion coin holders to earn without having to worry about day to day operations. Pools never directly own the stakes and thus cannot spend the Aion coins. OAN enforces mechanisms so that the contribution remains under control and ownership. A coin-holder delegates to a public staking pool,or in other words, a coin-holder uses delegation service from a public pool. The platform to stake is directly available here: https://staking.theoan.com/dashboardA full guide to put your coins into staking has been written by a known delegate and is available here: https://medium.com/anonstake/aion-staking-tutorial-delegate-on-the-aon-with-anonstake-e6bfc69a2854. This guide covers each step to start earning your passive income from Aion.
IRISNet - $9,5M Marketcap | 11% ROI
IRIS network or Irisnet aims to establish a technology foundation to facilitate construction of next-generation distributed applications. By incorporating a comprehensive service infrastructure and an enhanced IBC protocol into the Tendermint & Cosmos stack, IRISnet enables service interoperability as well as token transfers across an internet of blockchains. As the centerpiece of IRISnet, IRIS Hub will be the first regional hub connecting to the main Cosmos Hub, thus making IRISnet an inseparable part of the whole Cosmos network.
In short, IRISnet is a service infrastructure and protocol built using Cosmos SDK/Tendermint that facilitates construction of distributed business applications. By incorporating a comprehensive service infrastructure and an enhanced IBC protocol into Tendermint & Cosmos stack, IRISnet enables service interoperability as well as token transfers across an internet of blockchains: private, consortium chains, public chains. Furthermore, future amendments of the protocol will be managed through on-chain governance. IRIS token holders benefit from voting power to participate in the IRIS network’s governance.
Irisnet BPOS, also called Bonded Proof-of-Stake
BPoS is a variant of Proof-of-Stake, where token holders can earn additional tokens based on the size of their stake. In return for securing the network, validators and delegators will be able to earn an interest rate. If you do not want or know how to run a validator, you can delegate. IRISnet will be limited to 100 validators at the beginning, which will be selected based on the size of their stake, i.e. their own balance plus the amount of IRIS delegated to them. It is important to note that in case of safety or liveness fault, a portion, ranging from 0.5% to 2.0% of the validators and delegators’ stake will be slashed. Therefore, it is mandatory to carefully choose the validator. This consensus is very close to LPoS model as delegation is optional, non-custodial, and token holders benefit from voting rights in protocol amendments.
Nuls - $22M Marketcap | 10% ROI
NULS is a global blockchain open source community project, which provides a customizable blockchain infrastructure. It consists of a micro-kernel and functional modules. With innovative ideas on reducing the burden of main blockchain and decoupling events and services, modularization on all NULS underlying operational components is architected and implemented. Thus, NULS is fully capable of providing functional mechanisms to conduct smart contracts, to integrate main chain and sub-chains, to yield cross-chain consensus and to reduce costs in development and operation of business applications.
Nuls Proof-Of-Credit (POC) for passive income
The design of NULS supports the insertion of new functional modules as well as the replacement of the core functional modules in the consensus mechanism. The user can set the rules for their sub-chain and customize them to their needs. The main chain will use the Proof of Credit (POC) protocol that is the first of its kind designed by the NULS team. It works like Proof of Stake where a certain number of tokens will need to be locked before the user can run a node on the network. To be approved for block creation rewards you must have 200,000 NULS voted upon your node. To create a Node, you will need a minimum deposit of 20,000 NULS. You may vote for a node if you have 2,000 NULS. All voters will receive rewards proportionally along with the Node Operator receiving an extra amount for maintaining the Node. When a user wants to stop running a node, they can immediately unlock their tokens at any time.A complete guide to staking for Nuls is available at https://firstname.lastname@example.org/how-to-start-staking-nuls-8e00a8d9f2d1 and covers all the details regarding collateral , nodes and the different aspects of the PoC.
Algorand - 98,5M Marketcap | 9,5% ROI
Algorand is a high-performance next generation blockchain that uses Pure Proof of Stake (PPoS) and pseudo-random functions. Many have called this project “Blockchain 3.0”, as it solves Bitcoin’s well-known scalability problems whilst maintaining security and decentralization. Bitcoin uses proof of work which requires a massive about of energy to solve a computational problem. Proof of work also leads to issues with temporary forks, with two blocks being created at the same time.
According to Algorand, during a temporary fork bitcoin’s network must decipher which block of the two is the correct next block in the chain. This confirmation takes Bitcoin’s network over an hour to correct. Ethereum is moving to proof of stake, which allows for increased speed, but proof of stake comes with security risks if a new block creator is malicious and willing to forego their stake to corrupt the system.
Algorand uses the Byzantine agreement (Ba), which uses a majority percentage to confirm consensus, allowing for speed and eliminating temporary forks. Algorand randomly chooses users to create a new block. Once created, each block is weighted based on the amount of currency held by the creator. These blocks are then sent to the Ba committee to vote for consensus.
Algorand Staking with Pure PoSAlgorand utilizes a pure proof-of-stake (PPoS) protocol built on Byzantine consensus. Each user’s influence on the choice of a new block is proportional to its stake (number of tokens) in the system. Users are randomly and secretly selected to propose blocks and vote on block proposals. All online users have the chance to be selected to propose and vote. Algorand’s PPoS approach ties the security of the whole economy to the honesty of most of the economy, rather than to that of a small subset of the economy. The system is secure when most of the money is in honest hands. In Algorand ecosystem, it is impossible for the owners of a small fraction of the money to harm the entire system. The different advantages of PPOS versus other types of staking models are outlined on the official website:https://www.algorand.com/what-we-do/technology/pure-proof-of-stake/.
Decred - $182M Marketcap | 9% ROI
Decred or Decentralised Credit seems to have adopted Bitcoin's most popular features and coupled them with better governance, limited influence of miners and multi-channel atom swaps to switch between different crypto currencies. Decred is a digital currency that offers full autonomy to its stakeholders for decentralized decision-making and easy transition between different sets of rules. Its acronym is the DCR, with a total supply of 21 million tokens.
The Decred Core Network was launched on February 8, 2016 by O, a Chicago-based developer of Bitcoin tools. Decree 220.127.116.11, which is a hybrid system between PoW and PoS, was launched on April 25, 2017. Decred uses a modular code base to adapt and scale changes in blockchain technology - which means that its features can be added or removed more easily than other crypto-currencies. The use of the Lightning Network (LN) allows micropayments that are almost instantaneous in DCR. It is like Bitcoin, but processes in half the time and therefore competes with the existing fiat system. The Hybrid PoW Consensus Voting System gives stakeholders the power to make decisions to activate the rules and allows a seamless transition between them. PoW is used to validate transactions on the network and generate new Decred tokens through computing power. PoS, at the opposite, allows users with decreed titles to vote on important network developments and the ability to validate transactions.
Decred Staking via Wallet or VSP
There are currently two possibilities to stake decred coins easily and in a secure way. First, participating in Proof-of-Stake (PoS) voting requires a Decred wallet to be running 24/7. The wallet needs to be always online so that it can be called to vote, if the wallet is unavailable then the votes will be missed, and no block reward will be received at all. This kind of system is also known as solo staking. Finally, Voting Service Providers (VSPs), mostly known as staking pools, are available for those unable to keep a personal voting wallet online. Using a VSP is completely safe; the Decred PoS protocol allows to delegate the vote to a VSP’s always-online wallet without ever giving the VSP access to the real funds. PoS voting using a VSP can be done using Decrediton or dcrwallet.
- Decrediton - GUI wallet for Windows/macOS/Linux.
- dcrwallet - CLI wallet for Windows/macOS/Linux.