AdEx, the next-generation blockchain-powered digital advertising network, has just partnered with Chainlink, the world’s largest and most popular blockchain oracle provider, to integrate Chainlink oracles into its staking ecosystem to power its novel staking loyalty pool and governance system.
Creating an Elastic Reward Mechanism With ADX
Designed to make online advertising more transparent and less prone to fraud, AdEx uses a combination of traditional peer-to-peer technology and blockchain to track and verify traffic using a quorum of validators and allows advertisers and publishers to form a secure payment channel between one another — eliminating costly intermediaries.
To help grow the ecosystem and reward holders of AdEx (ADX) tokens, AdEx has implemented a carefully constructed staking rewards program, which sees AdEx holders benefit from both traditional staking rewards distributed by the network, and a share of the validator fees which are earned from processed ad impression payments.
Now, by integrating Chainlink’s data oracles into this staking system, the advertising platform will be able to pull in accurate ADX-ETH price data, to help balance staking rewards with market demand for ADX tokens by maximizing the return for stakers while maintaining the health of the network. This will be achieved through AdEx’s pioneering new elastic supply mechanism, which acts to ensure staking pool participants maintain their stake while the price is climbing or decreases ADX issuance if the price falls by using oracle ADX-ETH data to monitor the token’s price on the open market.
“We selected Chainlink because its price feeds are aggregated from numerous, high-quality data sources, secured by a decentralized network of highly reliable, Sybil-resistant nodes, and operated in a transparent manner that all of our users can independently verify as fair and accurate,” said Ivo Georgiev, CEO of AdEx Network.
AdEx believes that its new elastic staking system will benefit the overall health of the AdEx ecosystem, and gives stakers an opportunity to participate in its governance by casting their vote on important matters.
The Rise of Cryptocurrency Staking
In the last year, there has been a dramatic surge in interest surrounding Proof-of-Stake (POS) cryptocurrencies — mostly due to the potential yield they can offer for stakers, with many POS assets offering upwards of 10% yield per year, while some offer considerably more.
However, few cryptocurrencies have managed to effectively balance staking rewards with changes in user demand and sentiment, which can lead to a rapidly inflating supply and an adverse knock-on effect on the token price. As a result, though many cryptocurrencies offer an impressive yield in terms of token balance growth, not all are able to offer a positive yield when measured against the US dollar (USD).
As per data from Messari, less than half of the top 10 largest stackable cryptocurrencies by market cap actually offer a positive ROI in USD terms at the moment. In many cases, this can be explained by excess new coins entering circulation, potentially suppressing the price of these assets on exchanges.
AdEx looks to avoid this situation with the ADX token through its elastic staking solution, which it will use to ensure stakers net a strong return on their assets, without adversely affecting the ADX market.
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