Interview With Aventus On The Opportunities For Token Holders With Their Staking Program
October 14 2021 - 3:21AM
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When the Ethereum Network launched its Deposit Contract and began
its journey into a Proof-of-Stake (PoS) based consensus, critics
doubted that it was going to generate enough interest to lock the
necessary 500,000 ETH. At the time of writing, over 7 billion ETH
or $25 billion have been sent to this address. This proved one more
time that there is a high demand from stakers to access products
capable of offering yields on their investments. This was
acknowledged by Aventus Network, a customizable layer-2 scaling
solution to build on Ethereum and other blockchains for faster and
low-cost transactions. The protocol operates with a PoS based
layer; a native token called AVT, and a staking mechanism via the
Aventus Validator Program. This allows users to have access to fast
transactions and rewards for staking their funds in the protocol.
We sat down with their team to discuss the relevance of PoS staking
for investors, the role that Avanti Network could play in the
future of Ethereum, and the potential of its staking program to
offer users an accessible and high-quality product. This is what
they had to say. Q: For those unfamiliar with Aventus Network, its
features, and capabilities, can you tell us more about the
protocol? How can people benefit from using it? A: What began as a
blockchain-based ticketing solution to combat ticket fraud has
expanded by necessity because of working with publicly listed
companies like Live Nation. It has expanded to become a
customisable layer-2 blockchain network that lets businesses &
dapps build on Ethereum and other chains, at scale, to process
transactions at 100x the speed and 1% of the cost. Everyone knows
that Ethereum fees are at an all-time high and scalability is
limited to just 13 transactions per second. That’s not enough.
Aventus Network is a layer-2 solution that brings the scale and
privacy of a permissioned blockchain with the security and
interoperability of public blockchains — with none of the drawbacks
of either. What’s more, since many Ethereum competitors exist, as
well as other private / permissioned networks, Aventus builds
using substrate, which makes it simple to become a parachain and
benefit from full Polkadot interoperability —enabling enterprise
layer-2 scale across chains. Aventus has built a fork of Polkadot’s
Substrate to solve real-world issues, building strong relationships
with a range of ambitious, high-growth businesses, from ticketing
behemoth Live Nation France as reported by Bloomberg and video game
content platforms — like fruitlab — to credit card cashback
programs — like cashbackAPP. Now, significant updates to Aventus
Network platform architecture will facilitate new NFT partnerships
that will reshape and reignite the market. Creators can now mint
NFTs on the Aventus Network mainnet for a fraction of the cost of
any other blockchain network. Aventus NFTs are fully compatible
with Ethereum NFTs, and therefore can be moved seamlessly from one
blockchain to another. What’s more, unlike other NFT blockchains,
the NFT-Manager pallet on the Aventus Blockchain is designed to
support Royalties and is directly built into the Blockchain. This
ensures that creators who should receive royalties have a provable
claim via an immutable ledger, on their royalties. Q: Aventus
Network leverages a Proof-of-Stake based layer, what are its
advantages when compared to other networks, especially those
supported by a Proof-of-Work consensus algorithm? Do you believe
there are improvements in energy consumption and security to the
network? A: According to data from the Cambridge Center for
Alternative Finance, Bitcoin mining consumes more energy than
Argentina. However, comparing Bitcoin mining to all other
blockchains is like comparing the pollution of oil refineries with
garden centres. Bitcoin uses a highly effective but
energy-intensive proof-of-work (PoW) consensus mechanism. PoW is a
decentralised consensus mechanism that needs network members to
expend enormous effort in solving random mathematical puzzles to
maintain network security. It requires enormous amounts of energy
which increases as more miners join the network. Other blockchains,
like Aventus Network, use a Proof-of-Stake (PoS) consensus
mechanism to secure the network by aligning the network
participants’ incentives through complex economic game theory. This
means that malicious actors are economically disincentivized from
unethical behaviour as they are required to own and stake a minimum
of 51% of the network’s staked coins or tokens to confirm
illegitimate transactions. In doing so, other network nodes are
still easily able to spot such malicious behaviour and the bad
actor forfeits their entire stake. When the market cap of projects
ranges from a few billion to many billions of dollars, it becomes
economic suicide to harm the network. By skipping the PoW
consensus, PoS blockchains reduce energy usage by more than 99%,
using just a fraction of the energy compared to bitcoin. In that
sense, PoS blockchain networks can even be a giant leap forward for
businesses concerned with green credentials when it comes to any of
the aforementioned use cases. Q: How does the Aventus Validator
Program operate? It is necessary to have AVT participate in it, if
so, how can users access the token? A: Using a Proof-of-Stake node
validator model, the Aventus Network pays Validators their share of
fees from every transaction processed on the node to which they
stake their $AVT. The network relies on AVT holders as Validators
who process transactions in return for a fee. The Aventus Network
will launch with 10 nodes, each with an equal probability of
selection to process transactions (i.e. 10% probability). Each node
will earn fees associated with the processed transactions at a
current average of $0.01 per transaction. And each node will have a
total stake of 250,000 AVT. Validator transaction fee rewards are
paid in proportion to the amount of AVT a Validator associates with
a node. E.g. If a holder owns 25,000 of a node’s 250,000 AVT, they
will receive 10% of all transaction fee rewards from that node.
Validators will be able to withdraw their proportional share of
transaction fees associated with their nodes on a monthly basis.
Validators will be able to deposit any amount of AVT to any of the
10 nodes using the Ethereum smart contract provided. The smart
contracts have undergone a security audit by an independent third
party. The Validator Registration Program is currently 80% full and
will close immediately at 100%. Users can purchase $AVT from
Uniswap, Mercatox, or HitBTC and register to stake now at
https://www.aventus.io/ecosystem/. You can find a step-by-step
guide on how to stake at
https://medium.com/aventus/the-step-by-step-guide-to-the-aventus-validator-staking-program-e3ccf4b47c8e.
Q: What are the requirements to become an Aventus Network
validator, and why should users stake their fund with AVT as
opposed to a different staking program? For example, why not use
ETH and lock it on the ETH 2.0 Deposit Contract for the rewards? A:
There are many staking programs, like the ETH 2.0 Deposit Contract,
for example, however, as Aventus staker Blake said, “ I’m very
happy with these earnings, you would not see anything like this
earning rate at a bank. The staking annual return rate is currently
at 11.60%. The earnings are also on par or better than crypto
lending / earning platforms like Nexo etc. In addition to all this,
these staking rewards earned are not diluting your original
holdings as Aventus has a fixed supply. A lot of staking rewards
with other projects may offer much higher earning rates but in
reality you are not really earning anything as those staking
rewards are coming from minting more tokens and adding to the total
token supply. So if you saw 100% APY with a project that mints to
give out staking rewards then basically after a year if you did not
stake you’d be diluted 50%. If you did stake for the full year you
would in effect not be diluted as that 100% APY you earn would
counteract the dilution so in effect you gain 0 and lose 0.” Users
can choose their preferred token and staking program and could
choose to diversify across many. Q: Since its launch, Aventus
Network has consolidated partnerships with important players in the
crypto space, can you provide more details as to the newest
collaborations onboarding the protocol and how they impact the
Aventus Staking Program and its incentives? A: It’s true, we have
partnered with many sizable companies like Live Nation France and
had an agreement to process 58m transactions to the network. Each
new partnership adds to the transaction volume and, naturally, to
the transaction fees paid to Validators in the staking program. We
have some very exciting new partnerships coming in the NFT space
and aim as a network to reach one billion transactions in the next
couple of years — which means a lot of fees for stakers. What’s
more, as new partners onboard, they require ownership of the $AVT
token too to process transactions, which is exciting for anyone
staking to AvN nodes. Q: In the current inflationary economic
outlook, with the CPI recently surpassing 5.3% since August 2020
per the U.S. Labor Department, how necessary is it for investors
and people to have access to products capable of offering returns,
such as the Aventus Validator Program? A: Inflation wipes out
savings. To combat that and protect one’s wealth, it’s necessary to
earn through investments and income programs at a rate that matches
or outpaces inflation. Blockchain projects like Aventus make such
programs accessible to almost anyone with some money and an
internet connection. Q: Currently, there are many alternatives
blockchains emerging on the back of Ethereum high transaction fees,
and network congestion. In this context, is Aventus Network and
layer-2 scaling solutions a central part of the survival of
Ethereum? Or do you believe the future of public blockchains is
interoperable with many inter-connected blockchains offering many
use cases? A: As there is with email service providers, so there
will be with blockchains. Gmail users can send emails to hotmail
users, Yahoo users etc. Currently, interoperability and scalability
are major concerns in the blockchain space. Multiple blockchains
encourage fair competition — a major advantage to decentralisation
vs centralisation in that no one has total control. Ethereum,
without improving scalability will suffer under the weight of
current demand and subsequent gas fees until it bleeds users into
other blockchains and loses its reputation as the network of choice
for blockchain building. Layer-2 solutions like Aventus Network
help solve both of these problems by improving scale, reducing
fees, and aiding in the march towards interoperability.
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