When Consensus Meets the Lotto - Yoink

When Consensus Meets the Lotto - Yoink

By Crypto Adventure | Crypto Adventure | 16 Sep 2020


As the crypto sector continues to expand, it’s exciting to see all the new and cool ways that developers create to keep blockchains secure and participants excited. Today, the quest to discover original consensus mechanisms is greater than ever. While most of these new mechanisms secure their networks as intended, many lack one key ingredient to success – fun.

Yoink

Yoink provides the market with a break from the normal discussions regarding mining hash power or staking capabilities. Instead, Yoink adds a bit of twist to the normal consensus mechanism in the form of random payouts. Interestingly, anyone that holds a certain amount of YNK tokens is eligible to win these rewards. 

Imagine you are sitting at home watching YouTube. Suddenly, you receive a notification from your YNK wallet. You just won the random rewards program. How will you spend your new winnings?

Let’s compare Yoink’s fun-filled strategy to the current heavy-weights in the market - Proof-of-Work, and Proof-of-Stake. While these are not the only two forms of consensus in the market, they are the most popular by a long shot.

PoW vs. Yoink

In your traditional PoW system, the network relies on nodes to validate transactions. For example, in Bitcoin, the world’s largest PoW network, thousands of nodes compete to solve a difficult mathematical equation known as the hashing algorithm. This algorithm, called SHA-256 in the Bitcoin ecosystem, is so difficult that computers find it easier to make guesses than to try and complete the equation.

It’s this mathematical battle that allows Bitcoin to select nodes fairly, or in its early days, fairly. Today, the Bitcoin PoW system is centralized beyond belief. Long gone are the days of a regular user securing the network with nothing more than a normal PC. 

Centralization

Nowadays, the market is dominated by large mining farms. These, often government or corporate-sponsored operations can cost millions. Additionally, they can receive reduced electricity or utilize renewable energy to keep their operations running nonstop at a minimal cost.

Now imagine your little PC, sitting at home, attempting to compete against these behemoths. Yes, there is no way for you to win. It’s like boxing against Mike Tyson in his prime, you may get some good shots in, but you will never be able to consistently win.

This scenario has led the Bitcoin mining sector to be dominated by these mining operations. This centralization has left the average user out of the loop. Yoink seeks to rectify these issues and provide a level playing field for everyone using the network.

PoS

Now let’s examine a PoS network. In a PoS blockchain, users secure the network rather than miners. To accomplish this task, the network requires you to "stake" your coins. Staking coins is the act of holding them in a network wallet. The more coins you stake, the better your chances to be chosen as the next node to receive the reward. 

PoS systems are gaining in popularity because they require far less power to operate versus PoW networks. Mainly because there is no intense computations required, no equation, and no mining farms pumping the hash rate up. However, these networks experience centralization due to other weaknesses within the protocol.

PoS networks require you to lock up large amounts of holdings to participate in any significant way. This strategy helps bolster the value of these coins but it also removes the ability for people to use these tokens to conduct transactions on a day-to-day basis. Your crypto is basically held hostage if you want a chance to receive the rewards.

Every PoS network is different. Some require you to lock up your crypto for weeks, while others only require days before you can start receiving rewards. However, all require you to invest in a coin then place it in a wallet and not use it. In this way, PoS systems make little sense to the average user. 

Yoinkinomics

Yoink attempts to find a happy balance between these scenarios. To accomplish this task, Yoink developers created the Yoink protocol. Here's how it works.

The network will retain 30% of tokens during launch. These tokens will reside in the Yoink Piggy Bank. Every time a block adds to the blockchain, the Yoink protocol will pull 1% from the community pool and award it to a lucky Yoink user. This strategy adds excitement and a bit of mystery to the entire process of securing a blockchain.

Deflationary Strategies

To ensure that there is ample market participation and that YNK tokens maintain a steady appreciation, the firm has a unique buy-and-burn strategy. Buy-and-burn strategies are one of the best ways for blockchain projects to maintain liquidity and appreciation in their projects. The goal of a buy -and-burn is to remove tokens from the total pool.

You Need to Be In The Game

The Yoink protocol also helps encourage participation in the network. You need to be in the top 500 Yoink holders to receive the reward. If the wallet that wins the Yoink rewards is not in the top 500, the YNK tokens instead are burnt. This provides even more value to everyone invested in this unique platform.

Yoink it Out

It’s awesome to see a strategy like Yoink in the marketplace. It’s obvious that the minds behind this clever protocol are experienced in the sector and seek to try something new and unique. For now, the market is filled with little piggies ready to Yoink some rewards from this platform.

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Crypto Adventure
Crypto Adventure

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