Use Case
Last updated
Last updated
Proof of Stake (POS) blockchains currently issue in annual native staking rewards. To put this into perspective, the social funding platforms GoFundMe™ (90M users) and KickStarter™ (70m users) provided $2.2B in social capital in 2020. BennyFi’s goal is to the turn in staking rewards into a recurring source of pool funding. Additionally, BennyFi’s novel, principal protection feature makes pool funding appealing and risk appropriate for a wider audience. Think social funding with reusable donations.
Based on 2021 data from stakingrewards.com
Based on 2021 data from stakingrewards.com
The following are current, or in development, applications on the BennyFi platform as of this writing. Empleos Digitales™ is an application developed by our first Pool Manager. PledgePool™, FlipStake™ and StakeToCash™ are reference applications developed by the BennyFi Foundation.
Empleos Digitales is a micro-work platform that pays associates to perform digital marketing tasks. Most Empleos Digitales’ associates are unbanked. High transaction fees in traditional fiat models minimized the financial benefits of the Empleos Digitales’ model, making it difficult to recruit and retain new associates. BennyFi pools were introduced as an associate benefit. Associates are given access to a staking pool. This allows them to stake a specific amount, for a specific duration, for a minimum return with the ability to win additional returns. This presentation looks exactly like a traditional lottery, except participants do not lose their principal. Think about a bank account that distributes a portion of the interest evenly across all accounts and an additional portion randomly as a lump sum to a single account. The Empleos Digitales results have been very encouraging. As of this writing, Empleos Digitales’ pools have 3400+ registered Participants and 1100+ completed pools.
PledgePool is a project funding Platform that utilizes staking rewards as its source of capital. Participants stake tokens to PledgePool pools under specific terms for a defined duration to fund a Beneficiary. At the pool’s completion, the accumulated staking rewards are distributed according to the pool’s payout terms, and the staked tokens are returned to the Participants.
Every blockchain needs a reliable source of project funding to stimulate growth and on-chain development. PledgePool recycles staking rewards back into the blockchain, creating a virtuous circle that increases utility, utilization, demand, and ultimately value.
Example: Project X needs seed funding to get its prototype to market. The team completes a Pool Application that includes some basic information about the project including description, project presentation, funding requirements, project plan and team member bios. They then submit that information to the PledgePool portal. Pool Managers review Pool Applications and either accept or decline the application. Once accepted, the Pool Manager configures a pool to meet Project X’s funding requirements. Once the pool terms have been configured, the Pool Manager activates the pool and opens it up for staking by Participants. Upon full staking, the pool is closed. The principle is staked to a staking rewards source and, at maturity, the staking rewards are distributed to Project X based on the payout terms of the pool. The staked principal, along with any staking rewards, is returned to the Participants.
Flip Stake™ gamifies token staking. It is a simple game that divides a pool’s staking yield based on a simulated coin toss. Two Participants enter a pool with a 90-day staking period and a fixed stake amount of 10, 100, 1000, or 10000. The staking rewards are split 75% to the winner and 25% to the loser. Flip Stake™ makes staking fun by using intermittent reward behavior as an incentive to get Participants to stake tokens and generate staking rewards.
Stake To Cash™ allows Participants to exchange future staking rewards for tokens today. Stake To Cash™ is interesting to Participants who need funding today to make a purchase but do not want to sell their tokens. Stake To Cash™ allows participants to monetize future staking rewards. Participants stake tokens today for a defined duration and reward. Once the pool closes, the reward tokens are immediately released to the Participants. At the end of the staking period, the staking reward is released to the Pool Manager, and the original staked tokens are returned to the Participants.