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CoinDCX Pro Promises to Launch ETH-backed Token on Reaching $1 Million in Eth2 Staking

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Snapshot

  1. CoinDCX Pro supports the upgradation of the Ethereum network by providing a staking product for users who are unable to stake on the deposit contract for various reasons. 
  2. CoinDCX Pro is preparing to launch an ecosystem for its users to get the benefits of Ethereum 2.0 including the launch of a token backed 1:1 by Ethereum. 
  3. CoinDCX Pro will be launching this token on reaching its milestone of staking $1 Million with its Eth2 staking service.

CoinDCX Pro Supports Ethereum 2.0

Eth2 is a major upgrade in the blockchain space that will lead to the creation of a decentralized internet where users will be able to access complex contracts and Dapps that require too many transactions –  something that Ethereum or ETH 1.0 is not capable of doing today. As mentioned earlier by our co-founder Neeraj Khandelwal, CoinDCX Pro has always taken a community-centric approach when it comes to the development and adoption of blockchain in the community. This time, CoinDCX Pro is creating an ecosystem for you to make the best use of Eth2.0 by providing you with a token that is 1:1 backed by the Ethereum staked on CoinDCX.

Yes! CoinDCX Pro is Going to Launch a Token for its Community for Ethereum 2.0 on reaching the deposit limit. 

This token can also be used as an exchange utility token to get benefits on trading fees, airdrops, rewards and more! The wait will soon be over as CoinDCX Pro will launch a token which is not only ETH backed, but it is community-backed too powered by the most-awaited technological transformation on the world’s most widely used Blockchain. As mentioned above, CoinDCX Pro will create an ecosystem for its community to reap the benefits of Ethereum 2.0 and this token will serve as a fuel which will be powering this ecosystem providing a series of benefits to its users.

Problems Related with Staking on Ethereum 2.0

One of the major issues related with staking as a validator on ETH 2.0 is the high fund requirement of 32 ETH ($19,200 at ~$600/ETH). Not many people hold such large funds. Moreover, many people are still getting used to adopting cryptocurrencies as an alternative investment. Putting a high fund requirement of 32 ETH only restricts crypto adoption among people who are highly enthusiastic about ETH 2.0 launch.

Other problems include the lack of technical knowledge for running and maintaining the validator nodes, getting penalised for staying inactive during the validation process or acting maliciously to affect the network. Lastly, it is the illiquidity of the staked ETH tokens that has made several potential validators disinterested in participating in the process.

How Can CoinDCX Pro Help You stake ETH?

CoinDCX Pro always has and will continue to come up with unconventional solutions to help users be a part of this growing industry. 

To start off, we have come up with an innovative way where users do not have to worry about high fund requirements of 32 ETH, any technical knowledge about validator maintenance, slashing and inactivity leak penalties and most importantly illiquidity. 

Users can now stake as many ETH as they want, starting with a minimum of 0.1 ETH. In addition to this, CoinDCX Pro is willing to offer validator facilities to its users who will be able to view their ETH that will be staked in the deposit contract. Users also do not have to worry about any penalties regarding the validators nor do they have to worry about the liquidity of the ETH tokens staked on ETH 2.0.

Wondering how we will do all that? Continue reading our RoadMap to get an overview of our goals.

RoadMap

Stage 1: Launch of Pooling Solution for the Masses – November, 2020

The pooling of ETH tokens for staking will take place using our simple staking mechanism. The ETH staked will be pooled and validators would be created with a reporting portal to ensure there is complete transparency. This will allow users to directly get information about their staked ETH from the blockchain directly.

Now, users with absolutely no technical knowledge will also be able to stake and earn staking rewards by staking  upto 5000 ETH. Neither is there any upfront maintenance cost for the validators, nor will there be any penalties from our side. Come join CoinDCX Pro to enjoy the luxury of No Stress Staking!

 

Stage 2: Goal Based Products developed for your Staked ETH –  Mid-December, 2020

Once the staking procedure is over and no more ETH are accepted for staking on the Beacon Chain, we will be creating products depending on the amount of ETH staked on CoinDCX. These products can be broadly divided into two types.

 

Product 1: CoinDCX Pro launches a 1:1 Ethereum backed community token that will be used as an exchange utility token

We will launch an Initial Stake Offering (ISO) in case ETH worth $1 million+ gets staked on CoinDCX. Everyone who has staked ETH on CoinDCX Pro will receive a 1:1 Ethereum backed community token that will be used as an exchange utility token.Each token will have the same value as that of ETH. Users will be able to trade directly on CoinDCX Pro or transfer these tokens to other users’ accounts.

These tokens will be distributed based on the amount of ETH staked on CoinDCX. All token holders will also be able to encash the token once withdrawals are allowed post Phase 1.5.

These tokens will have no premine or founder rewards, and hence their quantity will only depend on the number of ETH staked. For every ETH you stake, you will get a token in return.  This also means that the daily supply of the token will be capped. No extra tokens will be produced once the staking for ETH 2.0 is complete.

Regarding the staking rewards for ETH, each user will receive an airdrop based on the weighted average of their holdings. The new tokens will be minted based on the ETH rewards that CoinDCX Pro validators receive. Once the coin burn activity takes place, the users’ account will be credited with ETH of an equivalent amount. 

Other advantages of using CoinDCX’s Token

There are several other benefits associated with the ownership of these tokens. These tokens can be used as utility tokens on CoinDCX Pro to get the following benefits – 

  • These tokens could be used as collateral in Margin to trade other cryptocurrencies with a  discount on interest rates.
  • Users can also get USDT loans against these tokens. 
  • Token holders will also be allowed to submit proposals for development on CoinDCX Pro and others will be able to vote on them.
  • All token holders will get early access to all the DCX products, lucrative lending rewards on select tokens on Lend, additional rewards on participating in promotional airdrops, fee discounts on all trades on Spot, Margin and Futures and other rewards on the ecosystem.

We will be adding more benefits for the users in the coming future. We would like to reiterate that the token pegged to Ethereum staked on CoinDCX Pro shall only be launched with the above-mentioned features if the stake of ETH is worth more than $1 million.

 

Product 2: CoinDCX Pro only provides validator services in return for minimum commission for maintenance of the validators

A less than $1 million worth ETH stake means that there will be no launch of any new token. CoinDCX Pro will still support ETH 2.0 by providing staking services on its platform in return for a marginal commission for maintenance of the validators. There will be no liquidity option due to the low amount of ETH staked and the tokens will be withdrawn only when the protocol allows in Phase 1.5.

The stake transfer feature among accounts on CoinDCX Pro is a feature we are considering to add but these will not be present in the initial days.  

 

Summing up

CoinDCX Pro is planning to create an ecosystem around the launch of the new Ethereum 2.0  with a product and a token that will help simplify ETH staking on Beacon Chain. You just need to stake, we will carry all your risks for free and help you gain maximum rewards. Users will not only receive rewards in those tokens, based on their ETH holding but also get additional benefits in product promotional activities, Spot and Margin, Lend and more. The only requirement for the launch of such a token is to have a cumulative deposit of ETH tokens worth more than $1 million on CoinDCX. This number has been decided based on the utility that the token will bring with it. After thorough internal research on various factors involving network effects, tokenomics, and the impact of Ethereum 2.0 in the markets as well as the users, we have kept the minimum limit of $1 million in ETH to be staked in our reserves. If this limit is not reached, we will not be launching our token.

Irrespective of the quantity of ETH staked, CoinDCX Pro will support ETH 2.0 and allow users to stake on its platform to earn staking rewards.

The genesis starts on December 1, 2020.

Prepare to Stake your ETH with CoinDCX Pro.

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