Lisk Week in Review – 16
Featured in this news update:
– Binance supports LSK staking
– A Comparison between Static vs Dynamic Fee System
– Delegates’ overview and #HeroesNotZeros
Binance supports LSK staking
Despite “staking” is not the correct word, as Lisk is a DPoS and not PoS blockchain and therefore the rewards are shared by delegates on voluntary basis, Binance announced the launch of a staking service on LSK deposits. Starting from 27th February, Binance begun taking live snapshots of user LSK balances.
LSK Staking distribution will be calculated as follows:
LSK generated by each user = Total LSK staking rewards received by Binance * User LSK holdings ratio.
User LSK holdings ratio = Average user LSK holdings / Average total LSK staked by Binance.
Users must hold at least 1 LSK in order to qualify for staking rewards.
The initial distribution of LSK staking rewards will be calculated through to 31/03/2020, with the total amount distributed equal to the staking rewards accrued during the period.
LSK rewards are calculated daily and distributed monthly. Distributions will be completed before the 20th of each month.
This is the second exchange that allows LSK staking, following what CoinCheck did about two months ago, and we should expect that other platforms will follow the trend. When the consensus will be changed in Lisk blockchain, those players will reshape the delegate scenario, but also on short term it is important to highlight the motto “Not your keys, not your Lisk“. The consequences of an hack may be relevant if it holds a large stake and users should always be encouraged to keep their coins in a desktop or hardware wallet. The Proof of Keys day is indeed celebrated every January 3rd by the Bitcoin community, demanding and taking possession of all bitcoins held by trusted third parties on their behalf.
A Comparison between Static vs Dynamic Fee System
LiskHQ released a blog post where Michiel Mulders compared static and dynamic fee systems, highlighting the benefits and disadvantages of both systems, and why Lisk decided to opt for the second one.
Static fees are an obstacle in crypto market due to the high volatility, because if the value of a coin increases by 10 times, the fees become too expensive and usability and accessibility of the blockchain are compromised. A new fee system will stimulate the Lisk network usage, as voting, registering second passphrase and also sending transactions over the network will be cheaper.
Read the article: Static vs Dynamic Fee System: A Comparison of Both
Delegates’ overview and #HeroesNotZeros
According to LiskMonitor, this week Elite got +20 million votes and GDT gained globally 6.7 million LSK. Binance cold wallet changed some votes, therefore it influenced the list of the most/less voted delegates.
At individual level, the biggest individual losses came up for carbonara [-5.3M], vipertkd [-5.1M], 4miners.net [-5.1M], joel [-5.1M], blackswan [-6.6M].
The most voted delegates are: liskpoland.pl [+1M], jong [+7M], minions [+5.8M], liskjapan [+5.3M] and liskcenter.io [+5.3M].
It is still possible to receive 2 free LSK, exploiting the 1 LSK refund by GDT here and the 1LSK refund by minions (if you vote the “Heroes” list, no action required).
Read more about the campaign #HeroesNotZeros in the dedicated article: “Heroes Not Zeroes: the Campaign to Push Deserving Delegates”