Tai Zen: What’s up guys, this is Tai Zen again, we’re in the middle of Time square. We’re speaking while all street performers are performing in front of us. The rain is sprinkling, and we’re trying bringing this to you guys as best we can. We got 15 Cent Joe. 15 Cent Joe bought Bitcoins back when he was 15 cents.
15 Cent Joe: That might actually be a slight exaggeration but they were very cheap
Tai Zen: Then you have like thousands of them
15 Cent Joe: No, I never had that money but it was very easy to mine them with CPUs back in the day.
Tai Zen: What did you do man just sit there and wait as soon as Satoshi released a white paper you start mining away. How did you know to mine that went back when it was only 15- 20
15 Cent Joe: It was going around as a way that you could buy higher performance computer hardware pay it off within months so it was circulating currency.
Tai Zen: It wasn’t even like currency.
15 Cent Joe: Not at all, no-one really knew much about it just was a thing and people were going “hey if I buy this new last processor with four cores I just run this program at night and then I can sell them”
Tai Zen: Don’t forget guys that we got our other team member David Fong here. We finally got him to come out of the woodworks, come out of shadows and come public after all these years of being in the background and building all the tools and all the indexes for us to trade and manage yours.
This is an investing channel, in other videos, you’ve talked about the Particl marketplace. Let’s talk about the Particl is staking, there’s the proof of stake and then there’s proof of warp blockchains in the proof of work blockchains, you need lots of mega hash rate to process the transaction to secure the network.
15 Cent Joe: It should be a progressive curve of an acquired hash power to protect it.
Tai Zen: In the proof of state system like Particl, it’s a proof of state so you don’t need the mega hash rate of hardware, you just need lots of Particl tokens
15 Cent Joe: Lots of individual people on individual devices, they are doing nothing more than having the marketplace open as an application
Tai Zen: And the purpose of this is to prevent centralization, processing and securing the network.
So talk about, I mean you’re always the early guy into all this new stuff, I wish to explain to our audience what you like about the Particle staking and what kind of returns are you making.
15 Cent Joe: Right now I can’t give you exact numbers because the number of coins that are staking and for everyone out there Particle is a proof of stake coin and that means that simply owning the token who is gonna generate you five percent interest, so it has 5% quarter-on-quarter APR.
Tai Zen: That means that if you just leave your tokens your Particl tokens on your wallet and what you do is the button, you unlock just for staking over, so no one can go in and transfer tokens, you only for staking.
And if you leave it running and you volunteer your computer to secure the in-process transactions for the network, what kind of returns or profit or money are you getting at it for volunteering your computer.
15 Cent Joe: The Particl assets that I own that I’m hoping to keep basically forever. The proof of stake, there’s tons of data out there, tons of videos on Youtube but it’s secured, we just said by people that have a software they have it opened and incentivize people to have it open every block, so every two minutes that you have your wallet open, you’re basically entering this the lottery.
However many Particle tokens you have is whatever percentage chance you have of being awarded the stake payment for that block. I got a lottery ticket right now it’s about 1.5 Particl per stake so every 2.5 minutes, 1.5 Particl which is worth like $12 or $11.
Tai Zen: So every couple of 2 and a half minutes you stay up to minute somebody wins a block, a lot reward is about one and a half a Particl tokens.
15 Cent Joe: You don’t win the block by having a multi-million dollar private form somewhere with custom hardware you win it by just having your laptop open.
Tai Zen: So each Particl token that you hold in your wallet is like having a lottery ticket. So obviously, the more tokens you have, the more a court worksheet lottery ticket.
15 Cent Joe: However over time it should be amortized out to being roughly 5% APR and Paul the community manager, he posted numerous times this kind of, like little quick rule where if you have 10 you can expect to get a stake once a year and if you’ve got a thousand you’ll get one every four days or something
It’s, I don’t remember the exact details but you can go and look and it kind of gives just people kind of investing targets.
David Fong: When you got this client running is it consuming your computer’s CPU?
15 Cent Joe: No it doesn’t.
15 Cent Joe: I would call it nearly invisible and so this is one of the reasons why I’m really passionate about proof of stake, all the different algorithms have their own Achilles heels in a theoretical sense
Proved a steak, I determine now to be fair, one of the fairest ways distribution is always tricky but I consider to be the superior way to secure a blockchain
Tai Zen: Speaking of fairness I want to add this, I did some research and I think like the Particle foundation holds like the biggest wallet and they’re not staking it.
15 Cent Joe: I don’t think they are now.
Tai Zen: Because I looked at and it’s not being stake so I think that they do that just so that the community doesn’t think that they are trying to make money off their stake.
15 Cent Joe: I mean it’s interesting because as an investor and a seller, I actually want the foundation to be well-funded, I want the foundation to have the money.
Tai Zen: I don’t know it does not appear to be, may be I could be wrong, I checked it does not appear that they are staking the coins that they’re holding.
15 Cent Joe: I’m actually unsure and it’s one of those things where that would explain why when I calculate my own numbers, I’m getting more than 5% out of APR and so you can go on a couple of different websites and starting to run pretty good now
You can go on several different websites and see what percentage of the network is staking and I think it’s between 60 and 70%, so what that means is that on average if 100% of Particle was in wallet staking, not in escrow, not being true, not being transferred, not on exchanges, you would be getting 5% interest on your investment but because it’s about 60 or 70%, you actually get 7 or 8%.
Tai Zen: So it’s a little higher than 5%.
15 Cent Joe: It’s higher than 5% and it’s my assumption that the more popular the marketplace gets, the more tokens will not be staking because they will be held on exchanges, they’ll be there will be in transit because only stationary tokens are eligible to stake.
Tai Zen: Because I noticed that when I first loaded up my wallet just to test it, they won’t stake the first day, I think you have to weight that I’m waiting for hours or so many XMN of the block before it starts staking
15 Cent Joe: That number might change if the developers try to figure it out but Particl that is always in motion will not be staking and so the more use the market gets, the fewer coins will be staking, therefore the higher the interest payment will be for people that are for sellers that are holding a balance in their wallet.
If you’re currently in XMN, two people out there listening, if you currency in Amazon seller and you’re watching this videos if you were selling on your Particl balance on the tokens that you were not the tokens that you were letting sit there and stake would be going up so it’s almost a kind of high-interest banking mechanism for sellers as well.
Tai Zen: Basically if you’re a traditional vendor on Amazon, you’re operating capital that being, that’s sitting there it’s not earning an interest whereas the operating capital that you have sitting inside the Particle marketplace will be earning a state it’ll be earning a stake.
15 Cent Joe: As long as long as it sits still, so I believe that’s going to incentivize sellers to be holding their Particle until they need to turn it into Bitcoin or Fiat or what if they have to do
This means that Particle will become more scarce therefore the token will go up in value, therefore, more people will buy it just simply to hold it as a speculative asset that pays interest and this goes back to the scale.
I think there is a community, a couple of months ago I think somebody made a spreadsheet anyone can just make a spreadsheet where, if only 20% of the tokens were staking and there was a thousand transactions a day, the APR is astronomical
Tai Zen: Let’s talk about the system is designed at the protocol level to produce 5%, all the coins are staking but I think we spoke offline either I spoke with you are with Paul the Particle community manager.
One of you guys said that because when a Particle marketplace comes online and people start buying and selling and making transactions that if you volunteer your computer not only will you get the new tokens are being minted but you also get the transaction fees that go along
Now your reward is one and a half Particle tokens per block, the reward will still be the same, but the transaction fees will be added to the record.
15 Cent Joe: One can only postulate, one can only assume that might at some point be quite high transaction fees, which I believe will be quite low but need to be high enough to prevent spam listings on the network and I have no idea what the ideal number would be and it wouldn’t even be surprising if it was a nontrivial but still very affordable amount
David Fong: I thought I read it it’s going to decline.
Tai Zen: The Particles that are rewarded out declined but the transaction the Particl marketplace transaction fees should increase by then.
15 Cent Joe: I think I know we were going so the idea it reduces the inflation to actually maintain the scarcity of the actual token itself, so that way it protects the value proposition the token has to be an income earner
So more people stake it so more people make the market faster and so it’s just, you can go with this form a hundred different angles but it’s a virtuous cycle and it’s a model that if you really take a step back and you really think about it, you start to see all these ways where it becomes the feedback loop
And it just becomes an endless feedback loop and so thinks about this if you’re a seller on the Particle marketplace and only half the coins are staking to your APRs 10%, there also a couple of hundred transactions a day happening in the marketplace.
So instead of the stake being 1.5 Particl evert two minutes, it’s three or it’s five and so as a seller you’ve got $5,000 Fiat worth of Particles sitting there and the numbers going up every time you log in, that’s you’re gonna become like an evangelical Particl shill you’re gonna running around trying to figure out how to get more buyers to enter the ecosystem, you’re going to come up with your own like MLM schemes.
Tai Zen: It’s almost like self-perpetuating.
15 Cent Joe: Correct. Because what will happen is is that the more entrenched you get the more Particls that you have, the more chances you have of getting a blockage
It’s the same arms race that secures proof of work only, now it’s the people that are actually making the end product the marketplace desirable the end consumer, they’re now part of the architecture, they’re now the machinery trying to go out and figure out how to grow it as fast as possible
Because not only are they are selling goods and services at a higher profit than they probably can anywhere else online, they’re doing it in a more secure environment that has much less opportunity for them to be scammed
If I sell you a laptop for $1,000 you claim it’s broken you ship a box of rocks to me Amazon gives you your thousand dollars back and I get a box of rocks and I’m not a laptop
There’s all these myriad of benefits that I believe the Particle marketplace is going to bring to fruition over time but just from a purely investment speculative investment standpoint, this thing hardly hard to work for it to probably be a keystone asset for me.
I personally believe that a very low amount of actual use, maybe real estate brokers use this to secure deposits on buying real estate or something, even if it only ever attains that level of adoption for whatever global reason I still think that a praticl token is gonna be one of the smartest things that I’ve personally participated in.
David Fong: I want to add to that it’s after looking through the white paper and through the team is really thought through the scenarios are the incentives really holistically, I was really impressed by the level of detail that I saw and clearly you’re seeing that in the ecosystem with just the Particles taking so it’s a good thing
Tai Zen: Thanks for sharing that with us man and that’s I stated it a few times but I actually have a better understanding of it now that you’ve explained it. I appreciate that
Do you have any other questions, David?
David Fong: I gotta gets taken
Tai Zen: Thanks for watching this video guy and thanks for explaining that to us Joe and if you guys like more videos like this, go to www.Cryptocurrency.market-newsletter and follow us ob newsletter.
And if you guys wanna follow the Particle community, check out the websites of Particle.io, do not go to the wrong one because there are a lot of phishing websites and scam websites that are trying to scam the Particle users.
Make sure you go to the correct websites and go to the Particle Twitter handle and follow them to. Thanks for watching this video guys and we see you guys in the future video.