Traditional cryptocurrencies such as Bitcoin, Litecoin and Ethereum are based and earned on the Proof of Work (POW) concept. This requires specialized hardware.
Advantages of POS Vs POW
For POW, dozens (if not hundreds) of computers and immense computing power are required to make any serious progress. This obviously involves great initial investments and energy costs. However, the AUD token uses an alternative ‘greener’ process of maintaining the network – Proof of Stake (POS). This process is based on the number of coins one holds and not their computing/processing power. In other words, the more AUDcoins held the more coin and profit accumulated.
Staking earns around 5% annually. This is calculated to make the exercise profitable and sustainable. The reward also motivates individuals to continue Staking and to maintain interest in the coin along with its functional uses.
Advantages Proof of Stake (minting) has over Proof of Work (mining)
It is not a requirement to have massive processing power to make POS, it is therefore much more energy efficient. It is also extremely decentralized. One doesn't need to use a third party (with more computing power) to get rewards as the number of coins he or she has determines their earning potential. Proof of stake also requires very little knowledge as opposed to Proof of Work. An AUDcoin token holder can simply set his coin and forget it, unlike POW that requires advanced knowledge and constant monitoring to work.
Staking on Aussie Digital– The door to open all doors
So you did the smart thing and invested in AUD Coin before everyone else, what do you do now? Well, should you not want to spend on our E-commerce platform and get only the best products at unbelievable prices, all the while accumulating bonus points that you can use to continue shopping, you can stake on Aussie Digital and watch your investment grow from the comfort and convenience of our system. Everything you need to know:
ERC-20 Hybrid Staking Coin
For this Hybrid Coin to work there are 2 currencies – AUD Coin and the Staking Reward Coin DIGI. Here is the description of how staking actually works for these currencies.
AUD Coin Token
AUD Coin tokens are purchasable. This means any user can purchase the tokens from aussiedigital.io
Once a user has purchased the tokens, they are then allowed to stake the AUD Coins.
How to stake?
Reward building will start automatically for the users once they deposit some AUD Coin into their online wallet or into any Ethereum wallet.
How is the reward built for a wallet?
For building the rewards, the users need to keep the AUD Coins in their wallet. The timestamp for the last transfer of AUD Token is saved on the blockchain for each and every Ethereum wallet.
If user A purchase 1000 AUD Tokens from aussiedigital.io on 23rd April 2018 06:30:00, this timestamp along with the user’s AUD balance will be saved to the Ethereum blockchain as below:
transferIns[_address].push(balance[_address], _now) //where _now is the current timestamp.
With the above, last purchase is saved along with the timestamp and the balance of AUD Coin that the user has.
Rewards depend on the coin age that a user has, the longer the users keep their token secure in the same wallet address, the greater their coin age and hence the greater the rewards they receive.
The coinage will be increased after every 3 hours, with the coin needing to be at least 9 hours old to build the coinage.
Hence, the users need not be on the website forever in order to generate the rewards for staking, as the same will get generated automatically.
How to receive the rewards?
For claiming the rewards users will have to select the Token from the drop-down on the Stake page at aussiedigital.io or Phone APP and click on the Mint () button.
Once the user clicks on the Mint () button on the stake page, equivalent DIGI tokens will be transferred to the wallet which the user has entered for the Stake.
Now, since DIGI Tokens are transferred to the users as a reward, DIGI coin can also be staked in the same way as the AUD coin.
The DIGI tokens are not purchasable and they can only be received as a reward of Staking. Purchases will only be possible once current Stakeholder trade their DIGI on Tradedo Trading Exchange at market rate. (Please note there is no current price for DIGI) As a guide, it could be compared to AUDcoin but because of the lower volume could potentially be worth much more. DIGI is only a result of Staking AUDcoin and will be released at the current rate of interest of 7.5% over a very long period.
The whole Staking process is designed to be very user friendly as this project has been created to entice the Crypto Novice! As well as being user friendly, its design is very engaging with the introduction of Phone APPs for Staking and online wallets. After all, making a profit should not be a chore.
Each time an AUD token is bought or transacted, that generates a block on the larger AUD blockchain. This block is unique and is recorded on everyone's AUDcoin wallet automatically. Therefore, it is variable, which means your transaction is variable. This makes it extremely difficult to lose AUDcoin through any sort of manipulation of the system. AUDcoin security is guaranteed.