InfStones Staking as a Service Startup in Silicon Valley Secures $2 Million to Expand PoS Networks
- InfStones received $2 million in investments during a seed round with Plug and Play Ventures, among others.
- The firm believes that PoS implementation on networks will be crucial to the progress of blockchain technology.
Proof-of-stake networks are becoming more popular, leading to a recent funding round for InfStones. InfStones is a Silicon Valley staking startup, and their seed round brought in $2 million to work on the block-producing capacity involving PoS networks.
An announcement on Wednesday indicated that the investors to participate in this round included venture capital firms like Plug and Play Ventures, which was an early investor of PayPal and Dropbox. The funding round also included Danhua VC (DHVC). The company itself was only founded last year, working as a full node and block producer for PoS blockchains.
With the new equity, InfStones said that they will be financing the expansion of their team, which only has five people at the moment. They will also be adding the services they offer to other PoS chains. The founder and CEO of InfStones, Jonathan Shi, previously worked as an engineer for Oracle.
Shi explained that proof-of-work protocols have established their stability as a result of the earliest participants. However, InfStones believes that the driving force behind blockchain tech’s progress will be the implementation of PoS protocols on networks.
Right now, there are nine PoS blockchains that already use the firm as a block producer, including Cosmos, EOS, Tezos, and Tron. To engage in the block producing process, the company collects votes from token holders, which allows them to receive mining rewards. The rewards are then given to holders by InfStones that typically cast votes, while automatically taking between 10% and 30% for their commission. The percentage that they take depends on the design of various chains.
As an example, the full node for InfStones has over 90 million votes, according to the EOS blockchain. There are approximately $450 million worth of EOS on the node, which is calculated by using the current price of EOS.
Along with the investments, much of the reason that bigger EOS holders chose to use the service for staking EOS is due to the encouragement of DHVC, according to Shi.