Pool-X is the Next Generation POS Mining Pool supporting lockup crypto transactions, launched by the KuCoin Exchange in August 2019.
In recent times, we have seen a great increase in the number and popularity of mining pools and innovative staking programs as investors are looking for other means of making profits in spite of the crypto market dip and KuCoin Exchange has been leading innovation in this new found investors haven.
I have tried to keep the language in this post as simple as possible; avoiding technical and complicated terms for proper understanding.
What is Proof of Stake (PoS) Mining?
The Proof of Stake means that a person or miner can confirm blockchain transactions or produce (mine) new coins according to the number of the coins they hold. The more of the coin they hold, the more their mining power.
The first cryptocurrency to adopt the PoS method was Peercoin. Nxt, Blackcoin, ShadowCoin and a host of others now followed suit. ETH currently is finalising the process of switching to a PoS system. It just keep getting interesting.
Proof of Stake (POS) was created as an alternative to Proof of Work (POW), which is the original system of confirming blockchain transactions and mining new coins.
Rather than using electricity to solve mining puzzles to create new coins, a PoS miner can only mine up to the percentage of the total available coin they hold or stakes on the network. For example if I own 10% of all available ETH, I can only mine up to a maximum of 10% of the coins and it also means that my chance of producing the next coin/token and/or verifying the next transaction on the network is 10%. I have only 10% control of the entire network.
The PoS system presents lesser risk of a possible 51% network attack (a situation where a single miner with at least a 51% of the mining power can take control of the network and possibly can block new transactions from taking place or being confirmed or manipulate transactions to their benefits) as mining power is distributed in proportion to the amount of the coins held by each miner or mining pool. For a miner to have 51% control of the network he must own at least 51% of all available coins. This will be really expensive for a single miner to accumulate, and even if a single miner or mining pool happens to accumulate that much, it will not be in their best interest to disrupt the network because they will be the biggest loser.
That is why many considers the PoS mining system be less risky compared to the POW mechanism.
What are Mining Pools?
A mining "pool" as the name suggests is a network of miners who brings their resources together (in this case their coins or tokens) to increase their mining power and share the coins mined among the participating members according to the amount of hash power or coins contributed to the network. So if I contributed 13% the staked coins I get 13% the total coins mined.
In most cases mining pools are corporate miners themselves who are out to make a profit and usually take what's called a pool's fee for setting up, managing and running the network. So if a pool's fee is 5%, you'll be paying 5% of your earnings to the pool owners.
About the Pool-X Mining Pool:
The Next Generation POS Mining Pool Supporting Lockup Crypto Transactions. Double rewards, flexible deposits & withdrawals, support of multiple coins and tokens.
Pool-X is a cutting edge, next generation mining pool and an independent subsidiary of the KuCoin Exchange.
Pool-X is all: a staking, trading and mining platform where users can take part in staking pools and operate mining nodes (giving users the best of all worlds). Unlike other staking platforms and similar to the KuCoin soft staking program, users on Pool-X are free to unstake their tokens at any time or transfer the ownership of the staked coins or tokens (through the liquidity certificate); providing an opportunity to adapt to the changing market conditions. This is possible through the use of liquidity certificates, which essentially represent ownership of a certain amount of staked tokens and can be traded with others in order to receive the tokens they reprensent.
Other than the above, the Pool-X ecosystem was created as a means to facilitate the development of the staking market as a whole. Services such as the node supermarket, where users can find and join nodes, or the multi-currency wallet, which allows users to store their tokens, make the platform much more convenient and user-friendly.
Users on Pool-X enjoys both the staking rewards (as high as 12% Annual Percentage Rate -APR) of the staked coins and the mining rewards (a share of the 250,000 POL tokens) which are distributed to the users Pool-X account every day.
Services offered by Pool-X include, but are not limited to: Liquidity trading market, Node integration, and Operational solutions.
Pool-X’s different liquidity-focused services enable the platform to operate smoothly and allow users to withdraw staked tokens at any time. First, there is the Liquidity Evaluation System. As the name suggests, the Liquidity Evaluation System measures the liquidity of each cryptocurrency that is integrated with each Pool-X node. This system adjusts the allocation from staked mining, specifying the liquidity of the asset and forming the index parameters by reading the open order price and depth on the target exchanges.
There is also the Liquidity Trading Market, a liquidity matching mechanism for users who hold staked tokens on the platform. It is through this trading market that users are able to redeem tradable cryptocurrencies in the short term by placing an order.
When staking crypto assets there is inadequate liquidity as the staked coins cannot be traded freely and users have to wait for the redemption period. Take ATOM (one of the stake-able tokens on Pool-X) as an example, ATOM’s redemption period is 21 days, which means users need to wait for 21 days to get back the staked coins.
The liquidity trading market will solve this problem as users will be able to trade coins even under staking condition through liquidity certificate.
The liquidity trading market will provide a liquidity matching mechanism for users who hold staking coins on the platform. For users who hold locked coins and need to redeem the staked coins in the short term, they can proceed to place an order in the liquidity trading market and exchange the tradable cryptocurrencies from the current suppliers by paying an extra amount of POL as fee.
The mechanism will provide lockup participants a more convenient way to ensure liquidity and secure a lower threshold for joining the nodes.
Currently, the Liquidity Trading Market has been developed and is now under internal testing; and hopefully, according to the team, the liquidity trading market will be available within one week after the POL/USDT trading pair is listed on the KuCoin Exchange. The listing is expected to happen by the end of February.
Advantages of The Pool-X Mining Pool
- Node Supermarket
The Pool-X mining pool operates on the core value of empowering digital asset staking and has integrated multiple/single coins with multiple nodes.
- Liquidity Trading Market
Pool-X is the initiator of the industry's first “Staking Lockup Return + Computer Power Trading” mechanism, providing staking returns and liquidity at the same time. What does this mean you say? -it means that users can trade their staked coins with others, similar to debt purchase or transfer. The new owner now assumes full rights and liability for the staked coins or tokens for the remaining terms (days, week, month or year) till the contract matures and the staked coin along with the full staking rewards is claimed.
- Liquidity Evaluation System
The pool is the global pioneer of the liquidity evaluation system, providing real-time staking mining profit and POL allocation evaluations based on individual user's contributions.
- Node Integration Solutions
Pool-X provides one-stop integration technology and operational solutions that enable more nodes to obtain their target users and build an industry-class PAAS (Pool As A Service).
The Proof of Liquidity (POL) Token on Pool-X
Come and lock up TRC20-USDT to get POL credits. ~Pool-X
The Proof of Liquidity (POL) token is a decentralized, zero-reservation credit issued by Pool-X mining pool based on TRON’s TRC-20 protocol.
Serving the role of points/credits for users on Pool-X, POL is one of the most crucial components in the pool’s ecosystem. POL was born to cope with the inadequate liquidity of staking crypto assets. It helps to record the liquidity certificate flows and works as the payment method for liquidity bidding. Perhaps most substantially, POL is the benchmark asset of liquidity pricing on the platform, as well as the medium for liquidity certificate records. It is for these reasons that it is named after Proof of Liquidity
The total supply of POL stands at 1 billion. Due to their nature, zero reservations for decentralized points/credits are to be provided to the team or any individual upfront. With its strict mechanism of participation proof, the rights and interests of the POL holders will be secured only on the back of deep involvement and substantial contribution to the ecosystem. That said, the vesting and distribution policy is also designed to serve as encouragement for actions that will benefit the growth of the platform.
What are the POL Tokens Used For?
- Liquidity Marketplace
POL works as the transaction media of the market to provide instant exchange of the staking allocations for users staking funds.
- Node Search Optimization
By providing POL staking to the platform, the node will boost the demand for search optimization therefore improve the competitive edge of the platform.
- Tech Service Payment
Developer communities will provide operational and technical solutions to the platform, getting POL in return.
- POL Public-chain Interoperability
Get POL as an incentive for shouldering the responsibility of recording and validating the transaction certificates across various chains.
Summary and Conclusion
Staking is one of the means I discussed in a previous post- (Top 5 Passive Crypto Income Ideas) for making passive and residual income and the KuCoin Exchange has been leading all innovations in this regard -starting with the KuCoin Soft Staking Program and now the Pool-X Mining Pool.
Pool-X offers the best of all worlds in staking, mining and trading to anyone who is interested in taking part in the staking ecosystem. Whether you are looking to run a node, or just to stake and earn the rewards, this new platform from KuCoin is able to facilitate this more conveniently than anywhere else.
Compared with other staking products, Pool-X is the world's first pioneer of "Staking Mining". During the staking period, you can obtain double rewards, including the staking rewards and the mining rewards (denominated in POL), which will be distributed to your Pool-X account everyday.
More so, Pool-X Staking offers flexible deposit and fixed deposit products for highly flexible lockup and funds transfer.
With benefits for all parties such as anytime withdrawals of staked assets without sacrificing rewards, solutions for low liquidity problems through the liquidity trading market, and a variety of services for nodes, Pool-X makes a clear case for being the best staking pool platform available yet.
Accessing the Pool-X platform is very easy and fast. All you need to do is Sign Up on the KuCoin Exchange, head to Pool-X website and login using your KuCoin Exchange e-mail address and password. Transfer any of the supported tokens to your account and start earning with a single click of the button.
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