Cryptocurrencies that utilise Ethereum’s new proof of stake (PoS) consensus have started to appear.
New coins such as AmpliFi, PoS-32 and eHive aim to bring staking rewards earned from Ethereum validator nodes to their dedicated users through decentralised applications (DeFi).
In the PoS age of Ethereum, the market has responded with a new wave of crypto tokens that have the potential to revolutionise the industry in the same way that yearn.finance did for lending and borrowing
Table of Contents
Ethereum PoS tokens
After the Ethereum merge on September 15, 2022, Ethereum changed from a proof of work (PoW) blockchain to PoS. Instead of needing to validate transactions by mining blocks with powerful computers, Ethereum validators on the new PoS network will need to retain at least 32 ETH and have a computer with 24/7 internet access to the Ethereum blockchain to validate transactions.
For most investors, having 32 ETH on hand (currently over $44,000) to become a validator is too pricey. There also comes the reality of computer maintenance and technical know-how that some investors don’t have when it comes to turning their computers into validators.
This is where the Ethereum PoS token market becomes useful. Cryptocurrencies such as AmpliFi, PoS-32 and eHive want to make it easier for investors to take part in Ethereum's PoS network and give them a slice of the revenue for helping.
AmpliFi
AmpliFi, an Ethereum PoS token, was launched in late August 2022. AmpliFi enables users to earn Ethereum and a form of their native token gAMP, by locking AMPLIFI tokens in an amplifier. To create an amplifier users will need to acquire 20 AMPLIFI tokens and then use them to generate an amplifier.
Users can then fuse their amplifier for 1 – 5 years to earn Ethereum rewards from AmpliFi's Ethereum nodes that can be claimed every 30 days along with gAMP tokens. Other revenue streams include staking AMPLIFI tokens to earn AMPLIFI rewards or liquidity mining.
At press time, AmpliFi currently has 1 Ethereum validator running. The team aims to bring more validators online over time along with more features for users.
PoS-32
An AmpliFi competitor, PoS-32, launched on September 20. The token was released silently and was later picked up by Twitter users who spread the word of PoS-32’s potential.
The PoS-32 team intends to provide its users with Ethereum rewards from their Ethereum nodes as well as native POS32 token payouts by simply staking POS32 tokens.
From the PoS-32 website:
PoS-32 is a community focused protocol allowing holders to seamlessly earn by becoming a validator on the Ethereum Network.
The small team is unlike most crypto projects with flashy advertising and an attractive website. Instead, PoS-32 is grittier with a small team dedicated to developing the PoS-32 ecosystem and setting up Ethereum nodes.
At the moment, users can stake POS32 tokens to earn POS32 rewards. The team aims to have 2 Ethereum nodes running and earning ETH rewards for stakers soon.
eHive
eHive and the EHIVE token were launched in early September 2022. Similar to PoS-32 and AmpliFi, eHive users can stake EHIVE tokens to earn rewards and eventually Ethereum once their validator is online.
Unlike Amplifi and PoS-32, eHive’s Ethereum nodes are acquired via eHive’s token tax through trades of the EHIVE token.
From the eHive website:
As the eHive validators will be created by the eHive token tax, all ETH generated by the validator will be distributed to staked eHive community members. This allows the eHive community to crowdsource their validators and allow users of all levels to participate in the rewards.
Like its competitors, eHive updates its community regularly through Medium and Twitter.
Although only Ethereum PoS tokens are highlighted, this new age of Ethereum will create numerous opportunities for the decentralised market that speculators have yet to envision.
Not all of these opportunities will endure or have longevity, as seen in previous bull runs, but the decentralised world is always willing to adapt to survive.
Get the latest on Ethereum and other trending cryptocurrencies such as Luna Classic and Shiba Inu.
Explore new topics and discover content that's right for you!
Planet Crypto