Koin has a proof of burn consensus
As such we can literally burn KOIN to get more KOIN! But what actually happens is that when you burn KOIN you get VHP which stands for "virtual hash power". You can use this VHP to mine KOIN again. The great thing is that you don't have to run your own node (although it is quite cheap to do so), but you can use burn pools. Everyone can add their KOIN (which is then converted to VHP) or VHP to these pools to mine KOIN together. There are some very low feews attached to this, but the advantages (imo) outweig the disadvantages.
There is a great article by @justinw in which he shows how KOINOS differes from HIVE. If you don't know much about the project I would suggest to start there.
How to use Burn Pools?
Currently, you can use burnkoin.com or the fogata burn pools.
- BurnKoin.com
This is one big pool in which you get about ~4.5% APY for burning your KOIN or providing your VHP. There is one big advantage of it: you can withdraw relatively large amounts of KOIN. This is useful, since it is the only way to get back significant amount of KOIN. This will change once KOINdX comes live (the defi platform for KOINOS). We can then swap KOIN<>VHP.
To use burnkoin.com simply connect your KOIN wallet address (e.g. with KONDOR wallet) to the platform and you can begin to transfer there.
- Fogata Burn pools
Fogata is a dapp which allows people to add burn pools themselves. The great advantage thereby is that people can adjust the details of the pool (e.g. burn fees) themselves. Some pools also offer a token called VAPOR which will have future use cases. You can see that the APY here varies quite a bit, but is also higher than at burnkoin.com since there are less fees.
Since there is much less VHP in these pools it is currently only possible to withdraw small amounts of KOIN from the pool. However, all in all it is fantastic to have this dapp since it contributes to the decentralization of KOIN and therefore makes the network much more secure.
Conclusion
After only 2 months+ of KOINOS mainnet we are already seeing many dapps and many in planning (KoinDx, Kollection etc.) which is very promising for the ecosystem as such. While the APY on KOINOS is less than on Hive, the POB consensus is a novel way to distribute KOIN to a potentially large user base in a decentralized way. There is so much to come for 2023., so keep your eyes on KOINOS!
Check out the Love The Clouds Community if you share the love for clouds!
Indeed, burn pools are cool and have good future use cases (like DAO funding, launchpads, etc). I will say though that if you can run your own node, you should! But burn pools are great for convenience and it's nice that there are options.
fogata.io is a great development done mainly by @jga, which is also quite active here in hive! Great post!.
Thanks!
Thanks for the Detail and informative post about Koin burning mechanism. I hope people will get benefit from it.
Yeah! It's good that I get to read about this coins, that has a good start, Koin is a big thing coming In few days.
it's more of a long term investment
Whenever a coin is burning, we see its value go up a lot in the days to come and the holders of this coin gain huge profit. Thanks for sharing this great and informative detail about this coin.
@tipu curate
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