United States, September 5, 2022 / AlexaBlockchain/ – Idena, the first Proof-of-Person blockchain, introduces a revolutionary model of staking which allows smaller-scale investors to receive a significantly higher APY compared to larger-scale investors.
On August 29, the Idena network voted for a hard fork that enables Quadratic staking– a new and revolutionary model of staking that has not been used in any other blockchain ecosystem. The model allows smaller-scale investors to receive a significantly higher APY compared to larger-scale investors. For instance, at the time of publication, staking $30,000 worth of iDNA will return an annual yield of 20%, whereas staking $300 worth of iDNA generates a yield of 170%, which is 8 times higher.
To measure different yields yourself, take a look at our staking calculator.
Andrew Edi, co-founder of Idena, said
Quadratic Staking prevents the dominance of large stakeholders and ensures the democratic distribution of staking rewards, incentivising small validators to run their nodes and keeps the network decentralized.
This is a huge milestone for the Idena network as it encourages investors from all economic backgrounds to get involved. By empowering smaller-scale investors with greater yields, the network is ensuring that people feel incentivised to engage with Idena regardless of what their monetary situation looks like. In turn, this promotes financial inclusivity within the community.
Quadratic staking is only possible because of Idena’s Sybil-resistant architecture, meaning one person cannot have multiple accounts at a time. This is because Idena’s accounts are semi-unique, in that somebody can easily validate one account at a time, but will significantly struggle to validate two, and will find it impossible to validate multiple. This ensures that a large investor cannot split their stake into fractions across multiple accounts to access an APY comparable to a small investor as the protocol prevents people from owning more than one account within the network.
To validate your Idena account you need to regularly participate in validation ceremonies (once every three weeks) proving that you are not a bot and you don’t own multiple accounts. You do not need to provide any personal data or expose your biometrics; you only need to prove you are human by completing simple human-centric tasks. To receive staking rewards, you need to keep your Idena node up and running. Staking is not computationally or electronically taxing, which means you can even take part with an old laptop. This, too, encourages people of all economic backgrounds to get involved.
IDENA is the first Proof-of-Person blockchain based on the democratic principle of “one person; one vote”. Regardless of how much you stake or what your yield is, every account within Idena has equal voting power. Not only this, but Idena is one of the most decentralized blockchains on the market, secured by around 10k validators. You can get more stats on the network via the blockchain explorer, as well as learn more about this project on our website.