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Crypto Analysis | Are Burning your KOIN?

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@tobetada
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Good day Hiveians!

Join me in analyzing the crypto markets!

 

KOINOS mainnet has launched on November 5th

Since then the blockchain seems to run without problems, but there are still limited use cases as there literally just 2 apps that have been released. These are the Kondor wallet as well as the ability to burn KOIN in a pool.

The wallet is an obvious app as users will have to keep their KOINs on self-custody wallets. From there we can send and receive KOIN as well as sign transactions. We can use the wallet, for example, by sending some KOINs to the burnkoin.com app where one can burn KOIN in a community pool. The alternative is to run a node on a PC and burn KOIN. However, the strongest hurdle in that regard is that it has to be running 24/7 which is not something I intend too do (as energy prices are through the roof). The upside is that the node does not need a very costly setup (it can even run on a standard PC).

Currently the pool has 2,2 million+ deposits which is almost a 1/9th of all KOIN currently claimed (this is about 17,2 million). You can also see that there is currently an APY of 4.25%. This is always changing, but can not go lower than 4%. If less than 50% of all KOIN supply is being burned the APY increases. At the moment it is about 44%.

When we go to the dashboard we can see more info:

At the top is the KOIN and VHP (virtual hash power) which is entered in the pool. Then there is my wallet as well as info about the pool on the right. The top right number is increasing by 4.25% APY on a constant basis. The pool is constantly burning KOIN and transforming it into VHP which is used to mine blocks. It also uses Mana and the circle to the right of "your KOIN" and "pool KOIN" indicates how much Mana there is (if you don't know about this concept you should read the whitepaper). One thing that has be acknowledged is that one can only withdraw KOIN from the pool depending on how much Mana the pool currently has regenerated. The larger the pool, the more can be withdrawn. At 3% it is currenly about 300 KOIN.

This is basically very similar to the power down period on HIVE. It would take several weeks to months to withdraw all KOIN if there are a couple of thousand stored there. Since many users are using this function Mana will likely be always low.

KOINOS has launched successfully, but the obvious caveat is that the apps which will bring value to the chain are still missing. Some are being worked on behind the scenes, but it also shows how much value and development we have here on HIVE already. Nevertheless, I think the chain with its proof-of-burn consensus is going to be a very interesting contender in the crypto space. If you are interested in the project you will be able to buy KOIN once there is a bridge or it gets listed on a CEX.

 


As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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