Like Cardano and Polkadot, Elrond is a competitor to Ethereum and seeks to be the foundation for the ‘new internet economy’. Unlike many smart contract cryptos, Elrond has a ‘growth at all costs’ approach and has wasted no time onboarding individuals and institutions.
💰ERD vs. eGold💰
In September 2020, the ERC-20 and BEP2 ERD tokens became convertible to eGold at a rate of 1000 to 1. eGold has a different economic model than ERD, namely a maximum supply just under 31.5 million. 11.5 million eGold will be issued over the course of 10 years to validators on the network, with about 10% being minted in the first year, about 9% in the second year, and so on. Fees can offset inflation.
🥩Elrond Staking Rollout🥩
Phase 1 began in October 2020, making it possible for users to “line up” any eGold they want to delegate to validators in an incentivized queue. Phase 2 of staking began in December 2020, and involved the same sort of queue process and rationale as the delegation queue but for validators instead. Phase 3 began at the end of March this year with the introduction of staking pools and real network participation. It set to complete by April 5th, after which point Phase 4 will introduce governance.
💲 Maiar Wallet💲
The Maiar wallet lets you buy, send, and receive eGold, BNB, and Ethereum. Maiar also has a generous referral program wherein you earn a cut of any crypto purchased by people you invite to the app. The Maiar wallet already has more than 200 thousand users between Android and iOS devices. Elrond hopes the Maiar wallet will be the spear for retail adoption of eGold and the Elrond blockchain.
In December, Elrond announced that it had partnered with BitGo to provide ERC-20 eGold token custody. At the end of January, Coinbase Custody joined Bitgo in providing safe storage of the ERC-20 version of eGold. This could be foreshadowing a Coinbase listing for the native eGold token.
📉eGold Price Analysis📈
eGold has seen incredible price action since the fall and this seems to be primarily due to the introduction of staking and Maiar wallet. Despite having a fairly large community, Elrond has not been covered very often in the crypto media. This will likely change as Elrond starts to roll out their DeFi ecosystem, which could boost eGold price.
Although Elrond began the conversion of ERD to eGold last September, there still seem to be hundreds of millions of ERD tokens sloshing around on Ethereum and the Binance Chain. Normally this wouldn’t be a problem, but the bridge to convert ERD into eGold is still open, meaning any ERD token whales could convert their holdings to eGold at a moment’s notice. In fact, the lion’s share of eGold’s supply is being held by whales, and this seems to be true on Elrond, the Binance Chain, and Ethereum too.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.