Cosmos Network (ATOM) Stacking Activity Is Yielding Some Fresh Fruits For The KR1 Firm
Cosmos Stacking Activity Is Bearing Some Fruits For The KR1 Firm
The KR1, which has been established as a crypto and blockchain asset investment company, has just announced that it is finally able to generate significant revenue and this is through staking yields.
The staking yields concept is being done on the Cosmos Network, one that has been considered to be the significant proof of stake investments that is in the KR1 portfolio, this is together with the Dfinity and the Polkadot.
How The Revenue Was Generated
On 14th March 2019 is when the Cosmos Network was launched, and after this is when the staking yield concept was able to start making the significant yield. It is happening on an ongoing basis within the native ATOM digital assets that is on the Cosmos Network. At the moment the platform has been able to generate about 15,463 ATOM.
From here the company announced that they have been able to realize the accrued revenue from the staking yields, they have realized the 15,463 ATOM having it at an average price of $4.76 for every ATOM, all this coming to a total of $73,671.
More On The Cosmos Network
The network has been established as a Proof of stake; unlike the other systems in the community that are Proof of work, this is the likes of Bitcoin, as it will not require to have a lot of energy consumption and the computing power. They tend to need all this to guarantee that their users will enjoy the best level of security and censorship resistance.
However, the holders of the ATOM are able to stake the Atoms as their security despite, and from here they will be able to participate in the block creation and the network maintenance easily.
As a holder of the token, you will also be able to receive a yield or a native network fee when you commit your ATOM for validation for the transactions you carry out on the Cosmos Network, and this is how stacking, and revenues get easily generated through this process.
There Are Some Risks Associated
But it is important to note that the staked digital assets tend to carry their own kind of unique risks, to be specific this is slashing. Slashing will occur as a time when a particular network gets penalized by the system; this is if the health of the network is compromised.
It could get compromised because of internal attacks, technical issues, or even cyber-attacks. At the moment slashing carries a penalty of about 0.01% and 5% of any ATOM tokens that get staked.
There is no exact fee that it attracts because it is pegged on the service providers, the percentage would increase as the staking service providers lower their current prices, or at the time that there are few ATOM tokens that have been staked. But the percentage tends to drop when there are more tokens that have been stacked. The reason for this is, the staking rewards get distributed to a larger pool of the staked ATOM.
The company also notes that there could be some stacking rewards from the other Proof of stake networks, and to be specific the Dfinity and Polkadot together with the other projects that KR1 has invested in.
“Just like Ethereum in the early days, Cosmos is becoming a major platform for developers to innovate on and token holders to participate at the very heart of the network. Cosmos’ unique attributes are attracting projects and companies like: Binance, the largest crypto exchange globally, which is building a decentralized version of its main exchange; the Thai government that is piloting a national identity scheme for almost 70 million users; and Terra, a stable coin project with top Asian e-commerce companies signed up. KR1 remains at the forefront of cryptocurrency investing innovation, being the only publicly traded investment company generating revenues by staking tokens. We are thrilled that our investment into the Cosmos team back in early 2017 is now allowing KR1 to generate a significant yield and we expect our other major investments, in particular, Polkadot and Dfinity to follow suit with both, staking yields and developer activity in the near future.’’ George McDonaugh, Chief Executive Officer of KR1.