KIRA NETWORK markets itself as the first decentralized network that enables market access to any digital asset in the interchain ecosystem. Essentially you can earn block and fee rewards from staking any digital asset on multiple chains at the same time with maintaining full liquidity and custody over all your funds as you trade on KIRA or use other DeFi apps simultaneously.
In order to facilitate solution that is both secure and custom made for the task in hand, Milana Valmont, Co-Founder & CEO and Mateusz Grzelak, Founder & CTO have put out an article that explains Multi-Bonded Proof of Stake.
I will try summarize their article to translate it in language most of us can understand. Hopefully:)
Proof of Stake (PoS) is a concept with which person can mine or validate block transactions according to how many coins (stake) he or she holds. If you hold 10% of a token you can theoretically mine only 10% of the blocks.
For the system to work you need to trust complete strangers who you never met. How do you do that?
These strangers have to have „their skin in the game“ as Milana Valmont nicelly put it. In essence you will trust someone if they've got something to loose. Human brain works that way. We are wired 2:1 not to loose in comparison to gain.
Assessing security of network (value of your skin in the game😊) where that value is measured in form of a native token tends to be very subjective and raises security issues.
„For that reason securing cryptocurrency networks with the value of a single token issued by the same network will unlikely inspire trust in every actor, and greatly limits the amounts of other assets that can be interchain-transferred to that network.“
That kind of network doesn't have an option of shared-security which can be a gamechanger for new blockchain projects that are trying to do their project via paralll-chains.
What's Kira Network Solution?
Value does not equal market price of a token so the voting power(value of skin) can't be assesed by price. Kira Network proposses that the value of foreign token is measured in units of a native token.
1 BTC staked = 10000 KEX
„As a result users can assess the value “at stake” based on their individual preferences to conclude if the network “security” is sufficient for them to interchain-transfer their assets into that network. Furthermore there is no limit to the total value of assets that can be transferred to the network secured by multi-staking, in other words, it becomes viable for the user to transfer, deposit, trade, and lock up tokens in DeFi which total value exceeds even the entire cryptocurrency market cap.“
What are the incentives for users?
Kira Protocol allows staking of digital fiat, commodities and trusted crypto-assets. Since Kira is all about multi-staking and revenues are generated through block and fee rewards, you as a staker can maximize your profits with their multi-staking value proposition. Value of native token will grow thanks to ever incresing netork security (network in general) and use, while value of foreign tokens will grow due to incentives and revenue model that KiraNetwork proposes.
Furthermore, Kira Protocol offers Staking Derivatives. You maintain full liquidity of your assets because for every staked assest a derivative is issued in 1:1 ratio. With this feature you can freely trade and tranfer your funds so your capital is never locked, thus empowering users to circulate their funds in a manner they see fit.
Node operators of Kira Protocol will equally share 50% of all network fee rewards. Also, validators can charge commission fees from their delegators as well as network fee rewards in proportion to the value of stake.
Why Kira Network and Multi-Bonded PoS?
"The Multi-Bonded Proof of Stake consensus offers not only unprecedented security and new utility for the “store of value” assets such as Bitcoin or Digital Gold but most importantly enables virtually unlimited inflow of capital from outside of the cryptocurrency ecosystem."