The vein network project supports the blockchain to provide tokens for a growing trend goal to create token staking.

While most blockchain-enabled projects opt to give their tokens a purpose in terms of transactional utility on the platform, a growing trend has pushed teams to create token staking. Staking typically requires people to buy large sums of tokens and to then lock up the tokens for certain benefits.

Most projects, however, have generated a monotonous benefit for those who stake their tokens: ability to collect the network’s fees, whether it be through mining or merely holding the tokens.

The concept of staking tokens is setting token usage towards a positive direction. Certainly, people who buy large sums of tokens of a certain project have a deeply vested interest in the success of the project.

Thus, there’s an opportunity to allow network participation for stakers through roles that go beyond mere fee collection. As stakers have an interest in the success of the project, they can play an active role in the growth and even functionality of a network.

An upcoming development, Vena Network, demonstrates how staking can be used as a means to incentivize positive and value-added interactions on the network. In fact, staking is one of the key pillars of Vena Network’s functionality.

Stake to Participate

Vena Network is establishing a protocol for the financial market; the core functionality behind the platform is to remove middleman institutions that handle loans and trades, and to instead allow the creation of a p2p network for such interactions.
The platform is openly accessible to anyone and ensures anyone is able to access critical financial services irrespective of their social predicaments. To ensure scams are kept at bay, Vena Network only facilitates collateralized financial interactions.

Though, Vena puts staking into a new usage, one that leverages the vested interest stakers have in the success of the project whose tokens they hold.

Those entities that want to use the platform to issue loans must stake VENA tokens. The obvious benefit of this is that stakers that want to issue p2p loans via the network will try to facilitate good terms for the loans as this effort will fuel the growth of the platform. This stands at a stark difference from most financial institutions.

While loan issuers will certainly benefit if they squeeze every penny out of those who seek loans, they’d also benefit if the platform becomes welcoming to a greater audience as this will lead to increased demand for the tokens. Thus, Vena Network uses staking as a means to make sure its ecosystem’s participants accommodate the fulfillment of a good service even in a p2p environment.

As loan issuers would have to stake tokens, it’d be in their benefit to provide conditions that please the masses; this is particularly true in the initial phase of the project. Platform growth could spur incredible benefit for the loan issuers as their deep holdings would gain value. This is a first-ever situation where a loan issuer stands to benefit from something other than interest payments; instead, the loan issuer has to find an equilibrium between interest payments and the borrowers’ level of comfort to ensure he/she can benefit from both interest payments and increased token adoption.

P2p financial interactions is a disruptive development, and Vena Network further enhances this revolutionary concept by turning staking into an opportunity to introduce the first-ever position for lenders where they could benefit from keeping interest rates low.

Official resources:
Website - http://vena.network/en
White paper - http://whitepaper-en.vena.network/
Telegram - https://t.me/vena_network
Facebook - https://www.facebook.com/Vena-Network-207271413455484/
Twitter - https://twitter.com/VenaProtocol
Github - https://github.com/venanetwork

Published by : jackbangor91
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