In this article, we will explore the popular subject of Proof of Stake (PoS) blockchains and the passive income that you can earn from staking your PoS coins on those blockchains.
In this article, we’ll be wholly focused on the Proof Of Stake system of verification on the blockchain network as well as the 9 most profitable Proof of Stake coins.
Note: By profitability, we mean the ROI percentage (Return of Investment) made as a PoS user per annum
What is Proof of Stake?
The proof of stake consensus mechanism explains in the algorithmic system of unifying operations on a blockchain network whereby each node (worker in the network) owns a certain percentage of the token used on the network.
With Proof of Work blockchains, these prior holding requirements aren’t necessary.
The switch between the proof of work to the proof of stake happened because the PoW system simply requires a node to mine coins, verify and complete transactions by creating block without possibly having any hand ( stake) in the game.
The PoW system could be overpowered only on one condition- if there is ever a user or a mining farm that has a least 51% of the computational powers on the Proof of Work network.
This feat was thought unachievable until Blockchain farms around the world began to grow big, big enough that if given more time will grow into 51% of the total network access. To ensure the looming disaster was avoided, the innovation of Proof of Stake came to life. Now, it wasn’t just enough to have an interest in mining and simply become a miner, you need to have a stake on the network too.
Let Us Explore The 9 Most Profitable PoS Coins Right Now
9. NULS (10.29%)
NULS is a new open-source blockchain and enterprise-focused platform. How NULS wants to set themselves apart is by providing a unique concept that they call microservices. In which developers can quickly and easily create modules for anything. This effectiveness is what shines through the NULS blockchain.
Additionally, their blockchain provides key features such as:
- Smart contracts
- Cross-chain interoperability
- And instant chain-building
This is how the NULS blockchain works
The design has a two-phased operating system which is the microkernel and the functional modules. The microkernel phase manages the underlying systems for the network while the functional phase is the compartmentalized trait of the blockchain network.
The models on the NULS platform are all removable and replaceable within the blockchain reflecting the flexibility of the network. Replaceable operations on the blockchain NULS platform includes storage facilities, consensus mechanism, algorithmic setup, and general networking.
It can also be classified into public or private chains according to the preference of the company allowing them to replace built-in setup with preferred applications. The modularization of the network particularly is to support a sustainable Blockchain network that gives developers the opportunity to change with time and adopt new technology and tools seamlessly.
To start staking NULS:
- You need to buy a minimum of 2000 NULS
- Download a NULS wallet and transfer all your NULS to this wallet
- Start staking. And with cold staking means that you can stake without having your wallet active at all times
For a guide on how to get started in staking NULS, click here.
You can buy NULS here:
8. IOST (12.21%)
IOST is a Blockchain decentralized application platform that provides services for internet providers and is aided by a smart contract. The project is uniquely shaped by its customized Proof-of-Believability (PoB) consensus mechanism.
Nodes on the IOST network have a contribution score, which combines their stake, contribution score, and history of verified transactions that have been completed before to award blocks and verification responsibility.
IOST is a balance between the traditional Blockchain decentralized system and the power bestowed on users to build a truly decentralized and scalable Blockchain.
The company is led by Terrence Wang and has its base of operation in Singapore with offshore locations in Seoul, Beijing, San Francisco, New Year and Tokyo.
IOST was not launched by any major ICO but held a series of private equity rounds where it raised $35 million in total. The token has its own wallet which was built by in-house developers in the community. Almost anyone can be a node on IOST as the barrier is very low and achievable meaning that IOST is apparently encouraging more nodes to join its network.
To start staking IOST:
With the Proof-of-Believability (PoB) a user can join in and start staking IOST from any of the official IOST Partners Program members.
- Buy IOST
- Join a staking pool, for example at Huobi, OKEx, OB Pool
- Start staking your IOST in this staking pool
For information on how to trade stake IOST seamlessly, you should click here.
You can buy IOST here:
7. Callisto (16.8%)
Callisto Network is a decentralized open-source crypto platform based on the Ethereum protocol. And it has its own cryptocurrency named ‘CLO’.
The project seeks to enhance and standardize the security in the network of Ethereum based cryptos by implementing a smart-contract development approach and environment.
A very important aspect of Callisto is the “Cold Staking” feature that enables users or traders to earn interest while holding their coin. This is different from the earning made via Proof of Stake consensus mechanism. Cold staking can be likened to the little interest that is gained for keeping your savings in the bank.
Callisto has identified in Ethereum smart contract a lack of implements that can danger it’s security and here the Callisto Network is coming forth to provide a solution to potential security risks.
Callisto’s ROI is 16.8%, and 1.4% for a cold staking period of 27 days.
“Callisto is intended to become a de facto security standard or independent 3d party expert for the whole industry of smart-contract development” (Medium article).
To start staking CLO:
- You will need to buy CLO at an exchange
- To start with cold staking you will need to download/use a Callisto-supported wallet. For example the official Callisto wallet, Magnum wallet or Guarda wallet
- Deposit your CLO coins in the staking-supported wallet and get started.
You can buy CLO here:
6. Loom Network (17.00%)
Loom Network is a Blockchain-based decentralized application that prides in being the top social app and game development platform.
The platform was particularly developed to put the blockchain technology into another use other than transactions. Loom network gives developers the chance to create their own decentralized application on a large scale.
It supports building if applications that are generally for social connections and gaming. What makes the platform way more seamless that every other decentralized application platform is the fact that it does not require a special programming language to build products.
Applications can be built with the common programming language for any developer.
The flagship product of Loom is the Software Development Kit (SDK) that enables developers to self-build their own blockchain network seamlessly even for developers who don’t have a solid Blockchain background.
Loom Network itself is diced and rooted in the Ethereum network and as such every other dApps built on it has the full backing of Ethereum this also means that the Loom Network token, Loom can be stored on any Ethereum compatible wallet.
To start staking LOOM:
- Buy LOOM at an exchange that trades it, and ETH
- Select a supported LOOM wallet and fund it with both LOOM and ETH (LOOM for staking) and ETH for sending transactions
- Deposit your LOOM to Basechain
- Delegate LOOM to a validator. Select one from the list available and start staking your LOOMs
Also, here is a complete guide on how to stake loom.
You can buy LOOM here:
5. ICON (19.11%)
ICON is a decentralized blockchain network equipped with connecting isolated crypto communities together.
ICON can be likened to the Ethereum cryptocurrency ether which is used as a central connection for all other networks that have their base on the Ethereum network. The Nexus, which is the blockchain platform that connects all crypto-related ICONs together is regulated by the ICON Republic.
The republic serves as the community for all independent Blockchain platforms built on the ICON platform. It also has its own Decentralized Exchange where transactions take place within communities in on Nexus through their representatives.
The network also has its own in-house Blockchain ID that allows users to give across ICON supported platforms with simple login processes. The verification program can also be used to clear users as events or register in private business or government organizations.
While every other blockchain offspring are creating innovative technologies and taking the blockchain technology into areas not taught of before, ICON is on a mission to connect them all into one giant operating system.
To start staking ICON:
- First, you need to install the ICONex Chrome extension
- Create a new ICON wallet
- Transfer your ICX to this wallet
- Select ‘Voting’ and select a P-Rep that you want to elect
- Start staking with the desired amount
For information on how to stake ICON, you should click here to learn more.
You can buy ICON here:
4. Phore (24.87%)
Phore is a blockchain decentralized application platform that allows developers the ease of building dApps network.
It was built in 2017 by Phroshi, a UK tech enthusiast with the state of the art technology after its initial demise as KryptKoin in 2014.
The project which is well invested in decentralized blockchain, chains of Masternodes, a self-regulating system, and other innovative technologies launched without any ICO in 2018 and now boast of great progress in market capitalization of $1,199,480 and 5 core in-house members with over 25 others working as specialist in finance, regulations, blockchain consulting and marketing.
Phore recently added another innovation to its fleet of a product called the Phore Blockchain Marketplace with outlets for online crypto traders that are uniquely identified and having their data secured on a well-regulated hash-based network.
Phore operates on a proof of state consensus mechanism, having its cryptocurrency, the PHR coin at the center of its entire operations.
To start staking PHR:
- Buy PHR at an exchange (the minimum you need to stake is 1 PHR)
- Install the official Phore wallet
- Move your PHR funds to the wallet
- Leave the wallet online for 24/7 to be able to earn rewards
Also, here is a detailed guide on how do stake Phore.
You can buy PHR here:
3. SYNTHETIX NETWORK TOKEN (62.4%)
Synthetix is an asset-backed crypto platform that is built on the Ethereum network and was set up to serve on-chain synthetic digital assets like Synths which are ERC20 tokens and are related to the direct value of tangible assets like gold, traded commodities tied, stocks and so on.
Generally, the idea behind in asset-backed token is to ensure the stabilization of value that the ordinary crypto lacks. Cryptocurrencies are known to have a sharp decline or upward mobility as the slightest variables available.
Asset-backed crypto in the other has a relatively stable value and as such investors and traders who prefer to hold an asset that are stable opt for them. The synthetic platform was formally known as Havven was created to be an outright stable coin but the platform did a re-brand which was marked with the launch of Synthetix mainnet and now has over 20 market trading Synth.
The project is simply another effort to strengthen decentralized finance (DeFi).
How to start staking SNX:
- Buy SNX at an exchange
- Lock the SNX as collateral via a wallet
- Mint Synths and earn rewards
Here‘s a guide to staking synthetic.
You can buy SNX here:
2. Livepeer (78.58%)
Livepeer is an audiovisual blockchain network platform that provides infrastructure for embedding video files or content on a website.
The aim of the project is to build a large connection of users with their computers who are all going to be a part of a large gigantic computer. The Livepeer platform can be said to be a YouTube but built on blockchain technology.
The platform is an open-source platform and therefore the codes that were used to create it are available to all users and can be collectively modified to better the service. Some users (nodes) on Livepeer who have taken to be guardians of the network by verifying the transaction and creating blocks are rewarded in doing so.
Their reward, however, is also in the token which is spent on the Livepeer platform called LivePeer Token (LPT).
How to start staking LPT:
- Buy LPT at an exchange
- Go to https://explorer.livepeer.org/ and connect a wallet
- Set permissions
- Choose orchestrator from the list of active and candidate transcoders 5. Start staking
Also, if you’d love to stake the live peer token, here is the way to go about it.
You can buy LPT here:
1. Enecuum (81.52%)
Enecuum, unlike every other blockchain technological system, is on another next-generation journey into how the processes of Blockchain technology are handled. We’ve always heard about nodes confirming transactions, creating blocks and mining coins or token with their personal computer.
Imagine for a second that the same process is made possible to run on a smartphone? Unbelievable! We know for certain that there are more smartphones in the world than there are computers.
Mining of tokens will become a lot easier and faster because most of the activity carried out on the phone will one way or the other becomes embedded in the blockchain technology.
You could simply be playing a game and you’re also earning. This is the work the Enecuum is targeted at doing. It enables security upscale with the use of smart contracts without incurring any cost while supporting three different consensus mechanisms including PoW, PoS, and PoA.
To start staking ENQ:
- Visit their website and download the mobile app.
- Create a new wallet through a mobile app
- Buy a minimum of ERC-20 ENQ
- Send ERC-20 ENQ to an Ethereum wallet
- Then Swap ERC-20 ENQ to Enecuum ENQ on their website.
- Press Start in the mobile app.
To get the roadmap to making some investment by staking ENQ, you can click here.
You can buy ENQ here:
While these assets seem to be topping the table on the profitability rate, it is important to know that the blockchain and cryptocurrency market is highly volatile and so changes are constant.
So while this list can give you a good indication of which PoS coins can bring you the best ROI (Return of Investment), it is also highly advisable that you make the decision if investing based on more than just profitability. Other important factors are for example:
- How probable is it that this blockchain succeeds and will be around for years? Unless you want to only invest for the short-term
- How much interest is it for this blockchain and crypto? With less interest, there is a lower trading volume. That means fewer people want to buy it from you the day that you might want to cash out for either Fiat or another cryptocurrency
Find other guides
Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier