Cold Rewards from DeVault: Earnings that Work for Everyone #FIRSTHI...

The guiding ethos behind DeVault is a commitment to build out a worldwide ecosystem that services all. Various developments and decisions behind the blockchain network are universally designed to make DeVault as accessible as possible.

In a broader context, a major defining characteristic of blockchain technology is a unique capability for the network to generate value for itself. Primarily, this value is deployed as block rewards, and used to reward individuals that propagate and secure the network through various means.

Initially, this played out as miners processing transactions in return for Bitcoin. For its intended purpose, this system works: individuals operate independently to build a secure, decentralized blockchain. However, mining isn’t perfect. It’s energy intensive, inefficient, and inaccessible for the vast majority of users in and around the network.

Staking was introduced as a more efficient, approachable alternative to mining. Through Proof-of-Stake, participants take turns as the network assigns responsibilities to parties at random, corresponding to their stake. In many aspects, staking is better: computational resource barriers are eliminated, which enables a broader user base to participate and earn.

But once again, PoS has a number of shortcomings. If you’re not online, you can’t stake. For the vast majority, having a dedicated server running 24/7 is inconvenient at best. There is a non-zero cost to running these staking nodes, which can nullify the earning potential of smaller holders. Additional requirements, like masternodes and delegates, further increases the barrier to entry.

The Inclusive Income Solution

In order to overcome this “participation barrier”, DeVault implements a unique system called cold rewards. Similarly to traditional staking, cold rewards yields passive coin rewards proportional to the size of the individual’s holdings. Unlike traditional staking, there is no connectivity or work requirement. Users who own DVT earn additional DVT via cold rewards, just for hodling on.

To become eligible for cold rewards, individuals must meet a few simple requirements:

Users must hold at least 25,000 DVT to qualify.

DVT must remain untouched in one’s wallet for at least one month (21,915 blocks).

That’s it! Values of DVT at or exceeding 25,000, in the same UTXO for at least a month (or rather, after 21,915 blocks), begin to accumulate cold rewards. The rate of returns varies year by year. Initially, the annual interest rate is 15% for the first year, 12% the second and adjusts annually.

Cold rewards are designed to be all encompassing. At current rates, 25,000 DVT is valued at less than $20, so virtually every member of the DeVault ecosystem is eligible. With no connectivity requirement, users participate simply by holding coins for a period of usually 30 days at a time. In practice, cold rewards enable the network’s value creation to extend to ALL of its users.

Cold rewards additionally work to aid the further growth and expansion of the DeVault ecosystem. As a mechanism for truly passive income, new users may choose to accumulate DVT versus other coins with more strenuous requirements for earnings. Cold rewards also happens to incentivize a ‘hodler’ mentality, which helps to restrict the inflation of DVT to those less likely to put it on the market.

Essentially, cold rewards act as a sort of savings accounts on DeVault, and can be accessed by anyone.