-- Some Fully Diluted Altcoins to Watch --
Probably the most redeeming value of the digital currency revolution pioneered by Bitcoin is it’s potential as a store of value and investment vehicle. With max supply capped at only 21 000 000, sometimes it’s hard to imagine if $BTC would have be any use as a payment network simply because of the incredible scarcity that will occur when minting of new coins grows to a halt.
Bitcoin market dominance and a relatively low max supply contribute towards strong investor confidence however, although a riskier investment, the principal can also be extended towards altcoins.
One of the most interesting projects that has a fully diluted supply, is the media focused layer-1 network, Theta. Looking to demonstrate and facilitate the video streaming industry’s shift into web3, Theta Network is building an accessible, comprehensive underlying blockchain structure. The project has an ingenious two token system. The governance and node participation coin ($THETA)has a fixed max supply of 1 billion, of which all are circulating. Investors in $THETA can then stake it and receive $TFUEL which serves as the gas token for everyday transactions. This is both attractive for investors while ensuring that the market related price action as a result of scarcity of $THETA will never interfere with the functioning of the network.
IOTA is an non-blockchain internet of things focused crypto-network. Although the IOTA network is secured POW like consensus mechanism, it’s ‘Tangle’ (Direct Acyclic Graph) structure means that there is no mining. The network token $MIOTA is intended as a utility token for IoT micro-transactions, however all 27 billion tokens are already in circulation.
Arweave, a blockchain storage project, utilizes it’s native token, $AR as an incentive reward for hosting nodes that secure the data storage network. The project is named for it’s innovative hybrid blockchain structure that has blocks cross connected to historical blocks. 80% of the native token were minted and released with the genesis block, the further 11 million gradually released as block rewards. Currently there are only about 500 000 AR tokens still to be created.
NEM is one of the original blockchain pioneers still going and has some notable characteristics. The project was first conceived of as a payments platform but has since developed a unique model for tokenization on their blockchain. Designed to be very accessible for developers it is API based and coded in Java, a popular and well known language. The network uses a unique proof-of-importance consensus mechanism that prioritizes validators with a staking investment over raw computing power. Of the almost 9 billion maximum supply, all are already in circulation.
Another project that began in the early days of crypto, and also a DAG cryptocurrency, NANO is designed as the ultimate payments network. DAG technology offers much higher throughput allowing almost instant transactions and zero fees. $XNO holders vote for representatives who validate transactions to protect against double spending. All 130 million $XNO coins are in circulation,and there is no mining or staking.
Stayed tuned for some more fully diluted cryptocurrency projects and closer look at Theta network.
(Posts are not endorsements and in no way intended as investment advice)