Na Pepper, Head of Marketing for Alephium write this one
Di views and opinions wey dey inside dis talk na di author own o. E no mean say na him be Alephium official position.
Proof-of-Stake (PoS) and staking gon gor na two matter wey dey waka together. Di name sef don give person small clue of wetin they happen. For plenti years now, one of di better ways people dey carry know whether PoS blockchain strong no be transaction speed or whether developers get better tools. Na di percentage of tokens wey people lock down for staking. Di higher di figure, di more attention di network dey attract.
Dat kind focus make sense well well because e dey show whether people true true carry mind put for di network. But for my own mind, di most important sign no be di reward percentage wey staking dey pay. Na whether people true true carry their mind choose to stake.
When Solana (wey be 68%), Cardano (wey pass 60%), and Cosmos (wey dey around 64%) all do staking participation wey resemble their sef, the program make people stake between 70% and 80% of their circulating supply. Which make am be dia highest period, e no happen by chance. Each blockchain gong gor carry different architecture and different incentive system.
For my side, dis one prove something wey dey deeper. People wey carry their mind put for one network want contribute to am, collect better rewards, and show say dem trust di ecosystem. To further burst head, dem want make dia rewards to continue to dey grow as time dey go.
Staking na one better way to show dat belief and when e dey work well well, majority of community members true true want stake dia assets. For di past one year, wey I don be Head of Marketing for Alephium, one Proof-of-Work (PoW) blockchain, I don open eye watch dat same belief grow inside our community. Wetin remain now na make di infrastructure complete, and dat one go soon happen with di launch of Powfi.
Why Proof-of-Work no do well atall
From wetin my eyes don see as marketer, I fit tell you say PoW never really get better staking option before.
Our community and ecosystem partners don dey ask for am back to back. Di demand dey clear well well, and e even make me believe gidigba for wetin Powfi go fit achieve. To make the matter sweet well well, better liquid staking never really dey for any Proof-of-Work blockchain before. Wetin Alephium dey build fit become first of im kind. For blockchain our size, dat one na real underdog story.
For PoW systems wey dey, miners dey do most of di security work. Because of di matter, hashrate come become di main way people fit support di network. But ordinary holders wey no get mining machines never really get plenti opportunities to put dia assets for work on-chain and still earn better from am.
Dat one commot say plenty participation never happen true true because di infrastructure no dey. For my mind, I dey feel lucky say I join Alephium just three days after dem announce Phase 2: Aligned Economics. Since den, I don sit down watch di journey of building Powfi and di staking ecosystem from beginning. To finally open eye see am launch go really make me happy. I believe say e go mean even more for di loyal community wey don support Alephium since tay tay, leave lasting impact and meaning.
If we sit down look am well well come apply dat same 70% to 80% staking level wey we dey see for other successful PoS networks to ALPH circulating supply, di kind opportunity wey never show himself before big well well; so make we shine eyes. The figure wey we dey see for up no be just speculation. E dey reflect how active communities dey normally behave once dem get infrastructure wey dey allow dem support di network and earn from the conviction dem carry for mind.
Wetin xALPH Go Change for Alephium
As dem don dey tell us since, na xALPH go become Powfi liquid staking token. E go carry better come wey never happen for any Proof-of-Work blockchain before.
"Person go Stake him ALPH, receive xALPH, den continue to earn staking rewards, and still fit use your money wey you put for other opportunities."
Nobody go force you lock your assets completely o. If you decide say you wan commot before di normal 30-day period finish, you fit jeje use di ALPH-xALPH liquidity pool. The way dem carry design the system na to do better for the users instead of to dey limit dem. The truth of the matter be say, xALPH fit do much more than dat.
Because xALPH go remain liquid, users fit use am do collateral. Just for example, you fit stake ALPH, receive xALPH, then use the xALPH as collateral for Linx, borrow more ALPH, then stake again again. As the matter dey go, your original position still dey earn staking rewards jeje. So as the rewards dey accumulate, your collateral dey increase in value. The loop dey compound dey go.
Dis kind looping strategy already don dey exist inside DeFi tay tay. No be Alephium invent am. But as far as my research don go, nobody don successfully bring dis model come Proof-of-Work blockchain before. Na one of di reasons why Powfi and xALPH dey special.
For Linx users, xALPH go also allow people borrow USDT with better collateral, dis one go reduce borrowing costs, and collateral wey continue dey appreciate while loan still dey active. From where I dey now, dis one go improve capital efficiency instead of to dey simply encourage unnecessary leverage.
Di Signal Wey Show Us Say Demand Dey
One of di strongest signs wey I don carry my eyes see no come from market research report. E come from better discussions with our partners.
Almost every ecosystem partner wey we don follow talk recently don tell us say dem want offer ALPH staking to dia own users. Once Powfi launch, dem go fit integrate am easily through di SDK. For the ko ko contributors wey don work taya for this project, the way before dey rush the product don start even before the project ready for market. That kind thing dey give person peace of mind.
Even before Powfi reach testnet, developers and ecosystem builders don already dey ask us about xALPH integration. For over ten years wey I don spend for technology industry, e get one thing wey no dey change. If customers don dey ask for product before product even launch, e commot say you dey solve real market problem wey don dey down already. Dat kind demand dey give developers confidence say Product-Market Fit don already begin.
Alephium technology dey strong gidigba all the time. Di sUTXO model, BlockFlow sharding, possibility of more than 20,000 transactions per second without fragmentation, plus secure smart contracts wey remove many common exploit risks, all dey already ready gidigba as we dey talk. Wetin only remain na economic infrastructure wey go allow community members benefit directly from dia long-term belief.
xALPH go provide dat missing layer. Like many people wey dey inside our community, Bodi dey sweet me well well and I no fit wait to see am launch.
Dis One Na Starting Point, No Be Final Destination
Before I round up drop this talk, make I come back to dat 70% to 80% staking benchmark wey I mention for up.
None of di major PoS networks reach dat level overnight.
Na small small dem carry grow as more infrastructure, more integrations, and more use cases develop for their ecosystem.
Cardano make delegation dey simple.
Cosmos combine staking with better governance rewards.
Solana make native staking dey easy for users.
Each network find im own way carry reach high community participation and involvement.
Alephium get one unique advantage for hand.
We go become di first Proof-of-Work blockchain to offer dis kind opportunity.
For people wey be holders, believers, and long-term supporters wey always want earn from di network wey dem trust, xALPH fit become one major turning point.
And by di way, we no dey see dat 70% to 80% participation level as limit.
We dey see am as benchmark.
Disclaimer
This is a community-run blog for third-party contributors. The views expressed here are those of the authors and do not reflect the official Alephium project. This content is for informational purposes only and does not constitute financial, legal or investment advice. Cryptocurrency carries risk and is highly volatile. Information may be incomplete or outdated. Always conduct your own research. We disclaim liability for any loss or damage resulting from reliance on this article.
