Cryptocurrencies with Treasury Models
Cryptocurrencies with Treasury Models
This will cover several cryptocurrencies that implement a treasury system and how a treasury system is beneficial for the cryptocurrency and its community to thrive. This blog post is intended to educate others and in no way is this financial advice. Please do your own research, thoroughly.
So, what is a treasury model? A treasury model is set up in a way that a cryptocurrency can collect a percentage of mining rewards and use that to fund development, marketing efforts and/or other work that can benefit its users. To decide what needs to be funded, a voting system can be implemented and some cryptocurrencies require users to have a masternode in order to participate in these votes. Those with a masternode will be able to vote on proposals made by the community. A proposal can be anywhere from improving the UI of the cryptocurrency's mobile app to funding a documentary that addresses a world-wide use case of using said cryptocurrency. The Treasury Model essentially is a pool of money that should be used on a monthly-basis, to promote growth.
There are many cryptocurrencies that have treasuring models and some are addressed below:
1) Decred
Decred is a cryptocurrency, similar to Bitcoin, with a strong focus on community input, open governance and sustainable funding and development. It utilizes a hybrid “proof-of-work” and “proof-of-stake” mining system to ensure that a small group cannot dominate the flow of transactions or make changes to Decred without the input of the community. A unit of currency is called a ‘decred’ (DCR). To ensure the integrity of the currency and prevent people from making fraudulent transactions or creating their own coins, Decred uses a method of recording transactions known as a blockchain.
2) Dash
Dash aims to be the most user-friendly and scalable payments-focused cryptocurrency in the world. The Dash network features instant transaction confirmation, double spend protection, anonymity equal to that of physical cash, a self-governing, self-funding model driven by incentivized full nodes and a clear roadmap for on-chain scaling to up to 400MB blocks using custom-developed open source hardware. While Dash is based on Bitcoin and compatible with many key components of the Bitcoin ecosystem, its two-tier network structure offers significant improvements in transaction speed, anonymity and governance. This section of the documentation describes these and many more key features that set Dash apart in the blockchain economy.
3)Energi
Energi is a self-funding cryptocurrency that has a purpose to reach the masses. The value proposition of Energi is that they will provide a very strong, self-funding treasury system which will eventually develop into a smart contract platform. Energi will provide a small allocation to mining rewards and will take a bulk of the coin issuance and give it the treasury and masternodes. Energi will also allocate 10% on-going reward to leadership of the Energi Backbone, which is significantly less compared to today's ICOs' rewarding their founders between 20-50% of the tokens distributed. Another trait that sets Energi apart from ICOs is they give an on-going 10% allocation through each block reward, rather than rewarding the founders up-front.
4)PIVX
PIVX is a form of digital online money using blockchain technology that can be easily transferred all around the world in a blink of an eye with nearly non-existent transaction fees with market leading security & privacy. PIVX is the first proof of stake coin with the zerocoin protocol (called zPIV) and zerocoin staking (named zPOS) is slated to be available Q1 2018; a completely new Proof of Stake algorithm providing unparalleled privacy, speed of transactions, and low transaction costs. PIVX is the fastest and lowest cost privacy-focused digital currency, using a Proof of Stake (PoS) consensus system algorithm allowing all owners of PIVX to participate in earning block rewards while securing the network with full node wallets. PIVX has implemented a Dynamic Supply System governing its coin supply; block rewards are static and inflation is reduced whenever a transaction is included in a block by burning transaction & zerocoin fees. Designed to be used as a viable currency that preserves individuals privacy and security, PIVX has the most sustainable supply model, is not susceptible to 51% attacks, is already globally distributed without centralization of coins to select few, is supported by thousands of passionate individuals in a Decentralized Autonomous Organization (DAO), and is already being accepted and used by merchants (online and physical locations) around the world.
5) Bitshares
BitShares is a technology supported by next generation entrepreneurs, investors, and developers with a common interest in finding free market solutions by leveraging the power of globally decentralized consensus and decision making. Consensus technology has the power to do for economics what the internet has done for information. It can harness the combined power of all humanity to coordinate the discovery and aggregation of real-time knowledge, previously unobtainable. This knowledge can be used to more effectively coordinate the allocation of resources toward their most productive and valuable use.
If there are any other cryptocurrencies that have a treasury model, feel free to comment those down below.
Thanks for writing about PIVX! zPoS (private staking if you will) has been live for several weeks now! You can now stake completely private and get rewarded for doing so! We were the first to implement the Zerocoin protocol into Proof of Stake and we have been the first (and so far the only ones) to have implemented private staking. :)
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I think there are many more. $PAC, Terracoin, Polis, SmartCash, Craver Coin, Loki, DogeCash, etc.
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