The landscape of exchanges staking on behalf of their customers is maturing. Binance announced their staking platform yesterday. So far only a few staking tokens that require relatively little node operations and don’t have slashing are part of the offering (e.g. NEO, XLM, and ALGO), but it probably won’t take long until slashable tokens like XTZ and ATOM will be stakeable with Binance as well.
Another recently announced custodial staking solution is KuCoin’s Pool-X, which aims to bring liquidity to staking tokens that have a lockup period. The team did an AMA describing how this platform will work also mentioning that they plan to decentralize this offering long-term.
For a comprehensive overview of the state of Staking-as-a-Service offerings, check out the slides of JK from stake.fish from a recent event in Seoul here.
TWITTER STAKING TAKES - Some of the most interesting staking-related discussion on Twitter from the past two weeks presented without comment:
- Is PoS less wasteful than PoW?
- Transaction fees in PoS lower real inflation for stakers
- Staking-as-a-Service is a bad business model
FAILED COSMOS HUB UPGRADE - A bug in the migration code resulted in a rollback to the previous software version during a planned hard fork upgrade of the Cosmos Hub. The community of validators managed to coordinate and relaunch the chain, read Stake Capital’s post-mortem for a complete timeline of events.
As a consequence, the planned upgrade needs to be rescheduled through the governance process. Overall, this episode both highlights the coordination capabilities of the Cosmos community, but also the need for better testing, improved documentation and the merits of an automated governance upgrade process.
REGEN AMAZONAS UPGRADE - Shortly after the failed Cosmos Hub fork, Regen, a network being built with the Cosmos SDK, completed their Amazonas upgrade. It used an automatic upgrade module that Regen is building. The upgrade went very smoothly and resulted in only a few minutes of downtime.
CODA TESTNET - Coda just launched the second phase of testnets, join their Discord channel to participate. The first phase concluded successfully with 90 nodes participating. Coda is the first succinct PoS blockchain and the first production implementation of Ouroboros Genesis consensus.
MATIC ECONOMICS - Layer-2 scaling project Matic released details on their staking economics together with a teaser of their plans for an upcoming testnet competition.
INCOGNITO VALIDATOR - A Kickstarter campaign that launched this week. An interesting development from the perspective of validating going mainstream. In addition to running a validator using the hardware being sold via Kickstarter, operators can also run virtual nodes and monitor them with a mobile app. Chris tried the process and was up and running in less than 20 minutes.
Chris will be in Osaka during Devcon week. Drop him a line on Telegram @chris_remus if you’d be interested in attending an informal Staking Economy meetup in Osaka.
Staking Economy is written by Felix Lutsch from Chorus One with assistance from Chris Remus, operator of the Chainflow validators. Opinions expressed are our own and do not necessarily reflect the opinions of Chorus One. All content is for informational purposes only and not intended as investment advice.