ICO Analysis: Pool Of Stake

As blockchain continues to evolve, many projects such as Ethereum are switching from Proof of Work (PoW) to Proof of Stake (PoS) for verifying transactions on their chain. Since PoS is more environmentally friendly and efficient, electricity and hardware costs are much lower than with PoW.

With PoS, token owners stake their coins into a validation node. When that node is selected to validate a transaction/produce a block, it is rewarded with either a piece of the transaction fee, or with more tokens. Since it is so easy and rewarding to stake nodes, a larger number of people are encouraged to get involved, which results in a  more decentralized system.

Most POS systems are designed to favor the larger nodes/stakes. The little guy faces the following disadvantages.

  1. Most nodes must be running 24/7/365
  2. Depending on the token, your coins will need to age. Meaning, they need to be staked for a period of time before the node even starts working.
  3. Wallet software takes up a lot of computer space and power.
  4. The chances at getting rewards with a tiny stake are slim.

New ICO Pool Of Stake is creating a safe pool for Proof of Stake coins. Their goal is to increase the profits for small coin holders by enabling a trusted environment to pool funds together. They aim to operate in all types of PoS blockchains – smart contract platforms and blockchains with a delegated mechanism (such as ARK and EOS).

“Proof of Stake is the new kid on the block and 2018/2019 will be the years in which PoS will be fully adopted by major players in the blockchain field. When PoS becomes the new gold standard of blockchain, Pool of Stake will be ready to become the biggest staking pool for PoS.”

The PSK platform will provide an analytics tool via a smart database that will allow members to track, control and optimize their investments in a fully trustless way. Through the POS governance model, members will have a direct influence on the pool via voting mechanisms. The goal is to eventually get it to where these voting mechanisms make the entire platform decentralized.

The reward for each Pool of Stake community member is calculated every night at midnight and is proportional to the amount of staked coins.

Token

The projects’ goal is to increase the profits for small coin holders by enabling a trusted environment to pool funds together. For this purpose, two tokens are used:

  1. PSK – an ERC-20 based token that gives discounts and rewards withdrawal fees.
  2. KEY – acknowledges the user’s initial investment.

PSK is their utility token, its sold during the ICO, and it enables users to get discounts on withdrawal fees. These discounts are nothing to sneeze at, and will add up to tons of savings for anyone staking to a pool.

PSK is traded freely in the markets and can be stored in any ERC-20 wallet.

KEY tokens cannot be traded. They are simply a way of declaring initial PoS coin ownership. Users can buy their PoS coins such as Qtum, Stratis or Ether in their preferred exchanges. Then they transfer their PoS coins into the Pool of Stake full node and via a Smart Contract, they get back a KEY token.

The total amount of PSK tokens on the market will be 70 Million, of which 42.8 will be sold during the ICO.

Distribution is as follows:

  • 9% Taxes/ finances/ Legal
  • 20% Security and tech development
  • 42% Marketing/social media
  • 30% Office and management

If the hard cap is not reached during the ICO, the number of tokens (circulating and non-circulating) will be distributed accordingly. The idea is to achieve a fair relationship between the donors, the developers, the advisors and the three founders. As such, the total amount will be divided according to the current percentage.

Team

Located in Lugano, Switzerland, Proof of Stake has three founders:

  1. Dario Calderoni (Head of Operations): He has 15 years of experience in logistics managing.
  2. Andrea Balzini (CTO): Network engineer since 2015 for a Sirti S.p.A, Italy’s leading technology company in the design and production of network infrastructures and telecoms system integration. It was founded in 1921.
  3. Davide Luigi Borella (CEO): The current CIO of Maveric. He’s been a coordinator or consultant for numerous companies over the last 20 years including eight years with HQ Engineering.

There are nine additional team members and advisors listed, including:

  • Barotsz Navara – A branding and marketing specialist. Founder & CEO at navarra.is GmbH/Co-Founder at VAUST Studio GmbH/Co-Founder & CEO at Codete GmbH/
  • Patrick Lowry (Advisor) Co-Founder of Node – a revolutionary high-tech start-up, which disrupts a market niche of wireless transmission devices for both private and commercial use.
  • Ciprian Filip (Advisor) – Spent eight years at IBM Former IBM. Currently CEO of Fundshing.com, a VC supporting blockchain company launch and manage ICO campaigns.

 

Verdict

This is the most straightforward value proposition I’ve come across as a reviewer. The Pool Of Stake team is raising $8 million to develop and scale a giant decentralized PoS pool. In the future, the team will take a 10% fee from every stakers’ rewards, unless that staker possesses PSK tokens, in which case they will receive discounts on said fee.

The team and advisors have set a realistic goal, and from what is seen so far and appear to be capable and hard-working enough to get it done.

Participating in this ICO is for those who have lots of PoS tokens they wish to stake and earn passive income. The PSK token is strictly for discounts on fees and voting.

Risks

  • Regulations are always a risk with crypto pooling operations. -2
  • The PSK token is strictly for discounts on fees and voting. There will most likely be very little price speculation, which eliminates that cushion that keeps most cryptos from falling. -1
  • The voting system they are working on to decentralize the platform seems like it could get complicated. The crypto community is very impatient. If POS makes a few mistakes in the beginning, it could be a disaster. 1

Growth Potential

  • They already have an MVP that stakes QTUM. +2
  • Based on future projections, POS expects to reach the break-even point in Q3 of 2020. They expect to have a community growth of 40% every quarter. +2
  • They want to be set up by the time CAsper starts. Some of the other blockchains they are interested in are: Boscoin, Tezos, Cardano, Lisk, Universa, and EOS.+2
  • They put out informative blog articles on a regular basis. +1
  • They are partnered with Maveric, a company that provides startups with the tools and expertise to launch their token ICOs. +2

  • Then there’s this crtiical piece of information: “Based on future projections and current calculations, we expect to reach the break-even point (BEP) in 2020-Q3. Of course, this outcome may vary, depending on market fluctuations and other events outside our influence. To the best of our ability we have developed a realistic future projection, which is also in line with the future projections of other Swiss blockchain companies. In the initial phase, tech developments and security will be very important. The budget for tech development will decrease over time. Nonetheless, we are working with a team of the best developers in order to stay flexible for changes in the blockchain ecosystem. Marketing is an important step in our plan, with a community target growth of 40% every quarter” +2

Disposition

Passive income in crypto is really cool. Genesis Mining is a PoW cloud mining service for the everyman to purchase BTC hashing power. They have over 2 million users. With PoS being the next PoW, and Pool Of Stake being the front-runner for PoS staking pools, this seems like a no-brainer. And there doesn’t seem to be any red flags with regards to the team or idea. 7/10

Investment Details

Featured image courtesy of Shutterstock.

Author:
Joshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!