Again, within the framework of the Indonesia Blockchain Week 2020, some of the most relevant issues in the world of cryptomonies today are discussed. One of them had to do with the advantages and disadvantages of participating in decentralized staking processes to obtain passive income.
Therefore, in this opportunity Sten Laureyssens (Adara.io) and Jesse Phillips (Binance) developed their opinions on this subject, and here we bring you the most relevant ones.
Synthetix: obtain passive income with cryptomonies by staking
What do you seek to achieve by stimulating staking to obtain passive income?
In the crypto currency system, there are many different types of staking mechanisms available. Even, Laureyssens considers that these are in the top of the existing systems in the industry.
What this expert pointed out is that what staking seeks to promote is “certain behavior in the people involved, regardless of what that behavior is.
He went on to say, “I think, and probably most other panelists will agree, that we are really seeing some pretty innovative creativity in staking. It’s used to get attention and to retain people who are following a project to participate.
One of his most interesting ideas is that a more efficient consensus algorithm to validate a network will allow to get to the point where the test work (PoW) is much less efficient. This especially in terms of energy consumption, but keeping the same results.
Additionally, something you should know is that the general idea of this system is quite convenient for those who want to make a profit. For example, in Synthetix the rewards for staking are linked to a stablecoin. Then, those rewards automatically become the same stablecoin that you are most interested and active in.
The latter is what Laureyssens highlighted in her talk, precisely because of the way it generates profits passively. According to him, these are really impossible things in traditional finance.