DeVault Cold Rewards — A Better Reward System For Emerging Markets?

A very  distinctive feature of cryptocurrencies that has led to mass adoption is  the ability for users to experience a total online economy that  includes incentives for participation in the industry.People  receive incentives in the cryptocurrency industry through mining,  staking and owning masternodes. The problem with these forms of  providing incentives is the entry barrier which is mostly not favorable  for people from emerging markets which might probably be the biggest  market for cryptocurrencies.

For  instance, mining has a very high entry point with most currencies now  requiring a dedicated device called a miner which can be very expensive.  Aside from that, miners must also keep devices online at all times  which requires 24/7 internet connection and electricity supply.

In  most emerging markets, electricity is mostly interrupted and costs a  lot for activities such as mining. Internet connection also posses as  another huge entry barrier for people in emerging markets who want to  mine cryptocurrencies since internet packages are mostly expensive and  not very stable.Let’s take Africa for example, research  has shown that prices for internet packages are high, sometimes as  expensive as $35 per gigabyte. In an emerging market, $35 is a lot of  money that can be used for other urgent needs.

Masternodes,  on the other hand, are less expensive than mining but also come with a  considerable cost that is also not favorable to many. It costs about $5  or a little less per month to run a masternode. Relatively better than  mining but still requires a considerable amount of investment that could  be an entry barrier for some.

Staking  usually requires nothing, aside from the user having to keep his wallet  open (online) throughout to confirm transactions. As we have already  mentioned, internet packages are not cheap in emerging markets meaning  it already costs a lot for normal usage to add the burden of having to  stay online at all times to it.

Cold Rewards — A better option?

Now  that we understand that not everyone is fortunate enough to have access  to high-end devices and services that allow them to reap the benefits  of cryptocurrency rewards at the moment, the lingering question is, how  does one solve this?DeVault  has developed a solution called cold rewards.

 Basically, a concept  built off staking but is different from staking. First off, cold rewards  play absolutely no role in confirming transactions on the DeVault  blockchain. Only miners perform that function in the DeVault ecosystem.Secondly,  cold rewards do not require users to keep their wallets open at all  times like staking. So what exactly are cold rewards then?Cold  rewards is a rewards system that provides an incentive for users that  hold their coins for about a month. 

Basically, if a user keeps his coins  in his wallet for about a month, the user gets rewarded for HODLing.According  to information from the community Discord, the minimum coins a user  must hold is 1,000 DVT to receive rewards. 

Reward timeline also defers  depending on the number of coins one holds. For instance, a person with  1,000 DVT will receive rewards every 4 months while a person with 4,000  DVT will receive rewards every month.In  this system, users do not need to get any extra hardware or commit to  any further costs. They get to use their cryptocurrency like they  normally do, hold some and get rewarded for it.

This  is a huge breakthrough in cryptocurrency rewards as it removes the  various entry barriers required to benefit from cryptocurrency  incentives, opening it up to a wider range of people, especially from  emerging markets.

You can visit this link to learn more about cold rewards.

This article was a submission for the DeVault Economy Article Bounty, visit www.DeVault.cc 1 to learn more about the community governed digital economy.