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(1.) Describe the Leased Proof-of-Stake (LPoS) consensus mechanism.

The Leased Proof-Of-Stake is an adaptation of the more popular proof of stake mechanism for reaching consensus on blockchain which has been successfully witnessed in its usage on the Waves network that makes it possible for the holders of the tokens on the network to be able to Lease such tokens to what is referred to as full nodes in order to receive a particular percentage from what usually comes out as the reward of the payout of this venture.

Usually, on the more common proof of stake networks every single node can make an addition of a new block to the network. However, in the leasef proof-of-stake mechanism it is possible for the users to select between the leasing of their tokens to the full nodes in the form of stakes or being able to run a full node themselves. In both cases they receive rewards. Hence, anybody can be able to take part in the maintenance of the Waves network.

Furthermore, it is possible for the operators of the nodes to make use of the mining power of a different person in order to generate or create new blocks in the leased proof of stake of the Waves network. This can be done without necessarily having to transfer the Wave coins from the wallet of the leaser to another. It is possible to stop the leasing function by simply selecting a transaction to cancel the lease.

The user who wishes to engage in the leasing would have to take his time to appropriately screen the node operators before doing so. Nevertheless, it is a requirement to hold a minimum balance of 1000 Waves before one can operate a node on the platform. Equally, as more transactions are carried out on the waves platform the leasers receive increasing rewards.

Features Of Leased Proof-Of-Stake

Fixed tokens:-

With the leased proof of stake, mining does not bring about an addition of new tokens to the network. The tokens are leasable but fixed. When the tokens are leased, they are locked in the accounts of the lessor as they cannot be traded until the leasing is stopped.

Balance Leasing

In the leased proof of stake users can make profit passively when coins that are domiciled in their wallets or even left in cold storage is leased to miners.

Reward from transaction fees

In the leased proof of stake miners only receive rewards in the form of transaction fees when they process new blocks. This is unlike other blockchains where both transaction fees and other block rewards are given.

Decentralization

In most blockchains centralised systems are created in a situation whereby miners come together in mining pools. This is to enable them to receive rewards for mining. However, in the leased proof of stake users receive their rewards based on the amount of stake they hold. This is distributed linearly. Therefore, mining pools do not matter. This creates a more decentralized environment that does not involve third parties as a P2P protocol is followed in the leasing.

What are the differences with Proof-of-Stake (PoS)?

Some differences between the proof of stake and leased proof of stake include:-

• In proof of stake you increase your chances of successfully mining a block by increasing the amount of stakes you hold while in the leased proof-of-stake you may increase your chances by increasing the amount of leased tokens you accept from lessors

• In the leased proof of stake rewards are distributed between the leasers and the full nodes while in proof of stake any node that has what it takes to participate in the validation process can take all the rewards

(3.) Make from your account a purchase of WAVES for an equivalent amount of 10 USD from an available exchange (Binance is not allowed(3.1) Describe the process. Show screenshots.

I will be demonstrating this section from my KuCoin Exchange wallet account.

• Once I had logged in to my kucoin exchange wallet account I went direct to trade

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• Then, I selected transfer in order to move USDT from the main account to the trading account where I would be purchasing the Wave token. I selected to transfer all the available USDT and clicked confirm

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• Once I was launched into the kucoin trading portal I selected the WAVE/USDT pair including the price at which I wanted to buy. The equivalent Wave token of 0.9324 was displayed and I clicked buy.

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• Once the order was filled it was marked as completed as shown below

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3.2) Show how the process is carried out to transfer the asset to the official Waves platform. (The demonstration is mandatory but the transfer is not)

• First I have to log in to my wave exchange account by email

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• I input my email and password then click continue

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• Once on the platform I selected the deposit icon as shown below

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• After this I selected the Waves token

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• An address for depositing Wave into the platform was displayed and I copied it

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• Next, I went back to my KuCoin exchange and selected assets

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• Then, I clicked withdraw

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• Having clicked to withdraw I selected WAVES as the withdrawal token and pasted the address I had copied

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• On the next page I have to manually select the network I am transferring to, include the amount of Wave token I wish to withdraw and then click confirm in order to successfully transfer the Wave token from The KuCoin exchange to the original Wave exchange whose deposit address I had copied and pasted

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(4.) What is the WX token?

The WX acts as the native token for the Waves.Exchange platform and is useful as a governance token. The Waves.Exchange is a decentralized exchange that is created under the Waves Ecosystem and which has been operating successfully from when it was launched back in 2017. It consists of more than 60 professionals which is a team that has a lot of experience in the world of blockchain and fintech.

The token is said to have 8 decimals and cannot be reissued. Originally 1,000,000,000 WX tokens were issued. These tokens which were originally issued are locked in a contract. It is only a part of the total of all these issued tokens that would be put into circulation. This process of releasing them into circulation is expected to take place in a space of five years that would involve the mining of 2628000 blocks.

It will be released in small portions. This will be based on the release rate and a part of it will actually be burned. The release rate in itself will be based on the voting from the community. So, it is actually the users who will determine the amount of the token that is to be put out into circulation as well as the amount that is to be burned.

What are its functions within the Waves ecosystem?

In the Waves.Exchange platform the WX token was launched in November 2021 with a view of achieving a higher level of decentralization in the ecosystem. Hence, this token was issued out to be used as a token for governance. Equally, it is expected to resolve issues relating to market-making, listings as well as liquidity on the platform.

Furthermore, the token can be used in liquidity pools investment as well as in other ways. Some of these include:-

• The token can be locked in a contract that must exist for a minimum of three weeks up to four years in order to receive the gWX (boost); the more the amount of heat that is locked as well as a longer period for which it is locked the more of the returns that would be received in the form of gWX.

• The token can be deposited or invested in liquidity pools where it exists as a trading pair

• The token can be used for the payment of trading fees and in this way it comes at a better rate

• The token can also be traded just like every other verified token on the Waves.Exchange

What is your value and Market Capitalization at the time of writing your post? Show Screenshot.

Important WX Statistics

Parameter	WX Statistics
Waves.Exchange Token Price	$1.74
Price Change (24h)	$-0.0479
24h Low / 24h High	$1.73 /$1.79
Trading Volume (24h)	$98,421.87
Volume / Market Cap	0.00863
Market Dominance	0.00%
Market Rank	#4295
Market Cap	$11,404,823.22
Fully Diluted Market Cap	$1,740,560,568.29
Circulating Supply	6,552,385 WX
Total Supply	14,794,520 WX
Max Supply	1,000,000,000 WX

(5.) Describe Waves Ducks What is this project about?

Waves Duck is a project which is like a representation of images in the form of digital ducks collectibles that functions as a gaming console. These ducks can be collected. When they are collected it is possible to breed them with others in order to produce very unique duck items that can be very valuable. Interestingly, they can also be shared with other people.

In the game, there are Duck Wars where players can engage in a clash that is meant to help them gain control of more resources and power through tactical battles. Ordinarily, users can register as a way of starting for free where they would receive a starting duckling with which they can go into battles right away.

These starting ducklings can be sent out to fight where they would have to join guilds to slug it out in battles. They engage in PVP battles where the aim is to emerge victorious in order to share out the token rewards among the victorious guild. By consistently playing in the games the duckling is grown; this is because consistent participation feeds the digital collectible until it becomes a valuable NFT which could be used to generate income. There are over 296,000 average monthly players who are active on the platform.

CONCLUSION

The leased proof of stake is a type of consensus mechanism that was actually adopted from the proof of stake style of blockchain consensus. It has been successfully applied on the Waves network and features the leasing of tokens to full nodes who determine the outcome of events of governance on the network.

Leasing the tokens makes it possible for one to earn additional rewards passively. This type of consensus comes with some advantages like decentralization, fixed tokens and balance leasing. There are a few differences between it and the original proof of stake consensus mechanism. The WX token is useful as a governance token on the Waves exchange and has reached a quite impressive market cap of over $11 million.

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