Binance Research has published a cryptocurrency market study called The Rise of Staking: From Theory to Building Large Infrastructure (“Increasing shared investments: from theory to building large infrastructure”).
The report indicates that equity investments are available.for owners of virtual currencies with a total capitalization of $ 15.4 billion, while digital assets worth $ 8 billion are currently in equity investments. According to analysts at Binance Research, this figure will double if the Ethereum blockchain (ETH) switches to the Proof of Stake (PoS) protocol.
Binance Exchange has implemented several programsequity investment, in which owners of 12 coins represented on the trading platform can participate. The Binance Staking system allows you to earn income for storing tokens. For example, the Algorand Staking Rewards site pays dividends in the amount of 14.34% of the deposit amount in ALGO coins.
Several startup blockchains launched programsequity investment. The mechanism for their application depends on the design of the token and the consensus protocol. Binance Research specialists identified three main points that a potential investor should pay attention to:
- requirements for depositors and the term for paying dividends;
- technological risks associated with long-term investments in a decentralized network;
- The resources needed to invest in several different blockchains.
Cryptocurrency enterprises apply the mechanismequity investments to support their projects. This strategy coincides with the policies of many companies from the traditional sector of the economy, designed to reward loyal customers. However, there is an important difference: in the crypto industry, “staking” programs make it possible to reduce the level of volatility of the virtual currency rate, as they reduce the number of coins in circulation.