Perspective analysis 丨 the bottlenecks and solutions of staking projects

In 2019, blockchain technology has attracted more and more attention from mainstream society. In the process, staking-type projects have gradually become the hottest topic in the cryptocurrency market recently.

staking means "equity pledge", which means that under the consensus mechanism of PoS or DPoS, token holders can obtain token revenue from the project party by collateralizing the token. In staking-type projects, anyone can earn coins by using crypto assets to lock up their positions.

However, the staking projects currently playing in the currency circle are actually facing several bottlenecks:

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1. The problem of adding users

For any project on the chain, constantly acquiring new users is the basis for project development, but everyone should also see that in staking type projects that have been running for a period of time, the increase of new users is a continuous Slowing process. In addition, the stock user activity of many projects is not high, and there is a risk of churn, so how to ensure the increase in user size is a very big problem.

The project party will also use the rebound of the currency price to do some marketing work, but in this case, many users who enter the project are coming to fleece. After the currency price subsides, it is difficult for the project to settle too much. Real users with limited conversion rates.

2.The bonus period has passed & the currency price has stagnated

After the project has reached a certain stage, for the new users, the project bonus period has passed, the currency price has been stagnant, and the benefits of the new users have been minimal. If you want to lock positions, you also have to bear the risk of indirect takeover. Users are not willing to buy tokens in the secondary market and lock up their positions. It is not as good as holding a lock. If they ca n’t change a project, it is a normal idea for many people.

In addition, in most staking incentive models, the stock user's lock-in rate of return has continued to decrease, and the lack of freshness will also shake the confidence of the stock users. After all, faith cannot be achieved by just talking.

Therefore, how to dynamically adjust the income expectation at a reasonable level can effectively promote ecological stickiness is also a difficult problem to solve.

3. Lack of consumption scenarios and insufficient liquidity of tokens

Another outstanding problem is that the tokens issued by current project parties generally lack effective consumption scenarios. Every project releases a large amount of tokens to the ecology every day, and users can obtain tokens through various forms of "mining", so the supply of tokens in the market is continuously increasing. However, currently effective consumption scenarios are very rare, and many tentative scenarios are invalid and cannot effectively stimulate the circulation of tokens.

Therefore, the token is not sufficiently liquid, lacks transaction depth, and does not form a healthy trading environment. How to effectively adjust the supply and demand relationship of tokens is also a problem.

At present, many projects are invested in a large number of tokens, which stimulates users' desire to earn coins in the ecosystem, and strengthens consensus through distributed holding. This kind of thinking has caused the supply side to be very smooth, so the market has become a market with serious oversupply, because staking did not cause a crash, and the logical basis for everyone's staking is that this coin will fly in the future.

Appreciation expectations are the only straw. If one day, such expectations are gone? Once the consensus is loosened, what will happen to the project? I think everyone knows very well.

Therefore, for staking type projects, "the rapid introduction of consumption scenarios and verification of their effectiveness" is the only feasible way out. The staking project must be able to provide virtual services or connect with the real economy as soon as possible, establish a reasonable consumption scenario, ensure the circulation of tokens, and change the current sluggish supply and demand relationship.

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