A reward system is one of the core parts that makes up a blockchain network. These systems are used to incentivize users to perform certain actions.
The consensus is one of the most popular ways to make money with cryptocurrency through block mining. It is a mechanism used to ensure the integrity policy of blockchain. Proof-of-work (PoW) and Proof-of-stake (PoS) are the two commonly used verification methods..
These two consensus methods have been successfully implemented in the earliest crypto networks, such as Bitcoin and Ethereum. The two methods, however, have some flaws making them subject to improvement.
Flaws of PoW and PoS
First outlined in the 2008 Bitcoin Whitepaper, Proof-of-Work is a mechanism for giving incentives to users who keep the blockchain network safe through their mining activities.
One of the major flaws of PoW is cost. For instance, consider the annual bitcoin mining energy consumption, which surpasses most countries' energy consumption making it one of the most expensive undertakings.
PoW also brings scalability issues within a blockchain. The more the number of users in a blockchain grows, the slower the network becomes due to an increased number of transactions needing PoW.
Proof-of-Stake is another consensus method. However, unlike PoW, which is like a mining competition, PoS block validators are selected through a protocol based on several factors such as their stake.
Just like PoW, PoS is not without flaws. First, it concentrates the incentives on high-stakeholders leading to bias. Also, PoS is hard and expensive to implement and maintain. There's also the issue of Nothing at Stake, among others.
For increased profitability and better experience, the Falcon Project introduces a new user reward approach called Proof-of-Hold (PoH). We dig deeper into this in the paragraphs below.
What Consider the Falcon Project?
Falcon Project is an initiative by a group of blockchain enthusiasts, which is also open to new participants, that aims to provide solutions to challenges facing blockchain from a global perspective. The project that kicked off on February 2, 2020, seeks to, among other things, create a unique user reward system.
Falcon Project Reward System Proof of Hold (PoH)
A reward system is a core undertaking of the Falcon Project. Unlike other networks that use PoW or PoS to reward their users, the Falcon Project reward system is based on a Proof-of-hold (PoH) protocol. PoH allows Falcon Project users to receive dividends for holding vouchers.
PoH introduced another way of making profits in cryptocurrency. In essence, PoH rewards users for storage of vouchers by encouraging them to remove tokens from circulation and create a shortage.
With the Falcon Project, what you need to achieve this is not a powerful computer. What you need is not a high voltage power supply. What you need is not a permanent online account. What you need is just a smartphone.
How it Works
Thanks to their commitment, the Falcon Project team has created two types of token that enable them to achieve PoH: The ERC-20 (FNT) and ERC-1155 (Vouchers) plus an active swap system between them.
The ERC-20 (FNT) token is the main asset of the Falcon Project. FNT is based on the smart contract of the Binance platform token (BNB) reputable for its reliability and top-notch security, among other features.
Falcon Project ERC-1155 are Ethereum-based vouchers implemented with the help of Enjin. The ERC-1155 vouchers allow users to make a profit from holding the voucher. This goes in handy with reducing the number of FNT tokens in circulation through the platform’s exchange system.
With a deposit of at least 1 million FNT tokens, you can exchange your tokens for a voucher equivalent to your chosen amount and receive a profit of 10% quarterly or 40% annually.
To ensure efficiency, the Falcon Project integrates a software that monitors the movement of vouchers. The software has a counter to ensure dividends are paid every 92 or 365 days to your Vouchers ETH address.
Falcon Project limits the number of vouchers to 33% of the initial token issue, i.e., 5,000,000,000 (five billion) tokens. This is also equal to reward funds for voucher holders, which is enough 2.5 years of guaranteed payments if you sell all your vouchers.
Benefits of Proof of Hold
Minimum net issuance – Many coins in circulation mean less value. PoH encourages users to hold vouchers and get rewards. Vouchers are exchanged with FNT tokens hence the more the held vouchers the less the amount of FNT tokens in circulation. Besides, FNT smart contract has functions for freezing and burning tokens to create a shortage and increase value..
Profitability – At 10% every three months and 40% per year interest rate, Falcon Project Vouchers are one of the most profitable ways to make passive income.
Secure transactions – Falcon Project combines two blockchains for effectiveness; ERC-20 FNT, and FNC blockchain that ensures anonymity and privacy while making transactions.
Life has many challenges. The solution to some of these challenges lies in huge inventions, while others take simple twisting of existing technologies. Blockchain is a big innovation that has transformed lives in a big way. It has huge potential that if tapped will change the world for the better.
With a smart twist of how blockchain works, the Falcon Project Proof-of-Hold provides a new way to earn while strengthening the FNT token. PoH gives investors a double chance to win from stored vouchers and from the benefits of a stronger FNT token.