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Hi everyone ????
This column will be dedicated to a blockchain which few people are familiar with, ICON Network.
What is ICON Network?
Invented in South Korea, ICON is a blockchain ecosystem based on a technology called loopchain, developed by ICONLOOP.
The goal of ICON is to hyperconnect the world. To do this, ICON connects with different independent blockchains with their own governance and community so that they can interact.
This interconnected network is called ICON Republic. When ICON Republic, it will be possible to create its own community and its own blockchain with personalized parameters to meet its own needs.
Connection with ICON Republic is then ensured by Nexus representatives and ICON C-Reps (nodes that represent the community), allowing connection between the different independent blockchains within the ICON network.
Through Dapps, ICON is also fully compatible with traditional blockchains such as Bitcoin and Ethereum, but also with other blockchains who would like to be part of the network.
The ICON protocol offers other advantages, in particular decentralized governance, the possibility of creating smarts contracts via a feature called SCORE and proof of delegated contribution (DPoC)? – a variant of DPoS (Delegated Proof of Stake), via which token holders can earn additional ICXs depending on inflation.
If you wish to acquire ICON tokens (ICX), the token is already listed on the main exchanges such as Binance (withdrawal available), Huobi (withdrawal not yet available) and recently Kraken.
Delegated Proof-of-Contribution (DPoC)
ICON is a Proof of Stake blockchain in which the protocol directly rewards nodes and delegates with newly created ICXs.
The distribution of ICX is done via the rating system called ICON Incentives (IISS) and is managed transparently.
It uses an AI tool developed by DaVinci, one of the largest AI providers in South Korea.
Specificities of Staking on ICON (ICX)
One of the peculiarities of the ICON protocol is the fact of being able staker its ICX tokens to different players in the ecosystem. As a PoS (Proof of Stake) crypto, ICX holders can support network decentralization and earn interest on their tokens.
With staking, you can assign the voting rights of your ICX to a representative (P-Rep, DApp and / or EEP) and earn more ICX depending on the size of your participation.
Staking on ICX is not custodial, which means you don’t need to transfer your tokens. However, it requires you to lock your ICX for a certain time, 5 to 20 days depending on the percentage of staking.
The more people use their tokens for staking, the longer the bond period, but the lower the interest rate and vice versa.
If nobody uses their tokens for staking, the bonding period will be 20 days and the interest rate will be around 12%.
However, if more than 75% of ICX tokens are used for staking, the bond period will be only 5 days and the interest rate will be around 2%.
But no worries. Indeed, one of the significant advantages of ICON network is the fact of being able to delegate its tokens to the three different types of participants in the ecosystem (P-Rep, EEP and Dapp) to be able to ACCUMULATE the interest rate by your tokens.
If for example you have 1000 ICX tokens, you will be able to use your 1000 tokens for staker of 3 different types (1000 to a P-Rep, 1000 to an EEP and 1000 to a Dapp) and therefore collect 3x the interest for your 1000 tokens.
Different types of participants
As you may have understood, there are therefore three types of participants.
The main role of a P-Rep is to maintain the secure, decentralized network, validate blocks and verify transactions.
In addition, P-Reps are also responsible for voting within the governance system and participating in ecosystem efforts through community building and / or the development of new products.
POS Bakerz is a candidate to be selected from the 22 Main P-Reps, so if you hold or plan to hold ICXs, don’t hesitate to support them.
Voting is currently taking place: https://tracker.icon.foundation/governance
From the end of the election, there will be a total of 100 representatives, 22 main representatives (P-Rep) and 78 alternate representatives (Sub P-Rep).
DApps are decentralized applications that run on the ICON blockchain via smart contracts.
Technically, this means that the transaction records and back-end code of the apps are transparent, running, and stored in the blockchain.
Unlike traditional applications, DApps do not need a centralized intermediary to operate or store user data.
DApps can therefore lead to many interesting applications in areas such as decentralized finance (DeFi), cloud, insurance, IT, gaming …
In addition to the traditional incentives, Dapp developers on ICON will receive some of the block rewards based on the staking votes and tokens they have received from the community.
With the ICON protocol 2.0 fee policy, the inventors of DApps also have the possibility of remunerating their users with the transaction fees linked to the use of their application. This is, in our opinion, a considerable advantage for mass adoption.
DApp operators are paid through staking. This ultimately results in a better user experience since fees become invisible to the user.
You will be able to choose the DApps you want to support by storing your ICXs to your favorite applications.
Finally, EEP stands for “Ecosystem Expansion Projects” and includes projects that contribute to the expansion of the ecosystem. (block explorers, portfolios, etc.)
Any ICONist can invent an EEP.
An EEP makes it possible to receive delegations and therefore the rewards linked to the validation of blocks.
If you want to participate in governance and interact with the ICON blockchain, do not hesitate to download the ICONex portfolio.
Several applications are already created on ICON, and the price of the token has decreased significantly in recent years.
Disclaimer : This is not an investment advice. Cryptocurrencies are a highly volatile product. Delegating your cryptocurrencies involves risks (volatility, cyberattacks, etc.). Please conduct your own research before choosing a validator.
POS Bakerz is a European company specializing in the staking of cryptocurrencies and based in London. We operate secure nodes for various Proof Of Stake cryptocurrencies such as Cosmos Network, Tezos, IRISnet, Terra Money and others.