Welcome back to our bite-sized series about core features of #private crypto Particl Project!
Missed the first article? See Particl Basics #1: The privacy coin to get up to speed.
We’re already familiar with Particl’s privacy coin, so let’s see how it can work for you — it’s time to get into staking.
Particl is a Proof-of-Stake blockchain (as opposed to Bitcoin’s Proof-of-Work), so new coins are generated via “staking” process.
Never heard about PoS? Proof-of-Stake by Simply Explained (YouTube) is a nice starting resource.
Particl, as a relatively small blockchain, is ideal for PoS, as it makes it more secure (just look how cheap attacks are possible on smaller PoW blockchains!), fair and also green.
Inflation vs Coin supply
Let’s look at the core attributes first. Particl’s current inflation sits at 3% per year and that will drop to 2% this July. That’s effectively much higher, than what you can get in any local bank. However it’s not high enough to excessively bloat the whole cryptocurrency supply.
Interesting fact: Particl’s coin supply is very rare (~ 9,600,000 PART at the time of writing), so at 2%, it would take 39 years to get to Bitcoin’s coin supply (= 21M coins in the year 2059)!
Supply of Particl (PART) coins up to year 2060
Keep in mind that all these newly generated coins go to the pockets of its users — the stakers. However, not everybody stakes (e.g. active traders). Still, the amount of total staking coins is consistently at least above 50%. And since the staking rewards are calculated not based on total supply, but on actual staking coins, the rewards for stakers are even higher.
Staying financially in control
Keep the 3rd parties at the door. Your keys, your crypto.
Staking on Particl is completely non-custodial. You have surely heard the phrase “not your keys, not your crypto”. Now add to that also “no delegates and no masternodes”.
Well, staking PART, you retain all your keys, coins and possibly even the hardware in your hands and under your roof.
The control goes even further. You decide how to stake. Use your phone, your computer, your hardware wallet (!) or even set up a dedicated staking device using Raspberri Pi and an easy-to-use utility to set up everything automatically!
Staking is at the core of keeping Particl secure. Rewards are distributed to active holders for doing their part (no pun intended.. or was it?). Nothing is forced — you retain your control and decide which way to stake™.
And all this is purely an underlying mechanism for the decentralized apps to work on top of Particl. Yes, you guessed it — those will come in future articles.
See you until then!
Intrigued? Jump into these resources to learn more: