Edgeware blockchain developers are proposing to make profit on Ethereum (ETH) cryptocurrency blocking. Every user is able to get 91 Edge tokens freezing 1 ETH for 3 months or 182 Edge – for 6 months.
Edgeware is an experimental blockchain, which currently runs on testnet. In essence, it is a copy of the Ethereum network, but operates on the basis of the PoS consensus protocol. The creators of the project will not conduct an initial coin offerings (ICO), instead they plan to use a smart contract which provide with block Ethereum coins for a certain period and receive Edge tokens as a reward.
Initially, the team plans launch 5 billion Edge tokens, 90% of them are planned to be distributed among users who will freeze Ethereum cryptocurrency. The company-developer of the project Commonwealth Labs will receive 4.5% of tokens, Parity Technologies – 3%, and the remaining 2.5% will be in reserve. Each year, the Edgeware blockchain will issue 1 billion Edge and distribute these coins among “depositors” (those who store Ethereum in a smart contract). Owners of Edge tokens will get the right to vote and will be able to take part in solving important issues, for example, to reduce or increase the issue of coins.
The number of received Edge tokens depends on the duration of Ethereum freezing: for blocking 1 ETH for 3 months the user will receive 91 Edge, for 6 months – 182 Edge, and for a year – 364 Edge. Edge cryptocurrency will be subject to a high level of inflation – 20% per year, so tokens are impractical from an economic point of view. Apparently, Edge will become another digital asset for speculative trading, if its value is not lowered to 0 in the first months after launch.
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