With the exponential increase in the popularity of blockchain technology and cryptocurrency in the past decade, it’s no surprise that the Securities and Exchange Commission (SEC) has been looking for ways to regulate and clampdown on what is an inevitable way forward for the world. The crypto and blockchain field is expanding at lightning speed, providing multiple solutions such as decentralized finance (DeFi) via ever improving blockchain technology.
Cryptocurrency has evolved from just being something someone can buy and sell to a way of providing passive income where investors can lend their cryptocurrency in exchange for a return.
One of the ways in which the SEC is now trying to hold back the growth of the cryptocurrency industry as a whole is by looking to completely ban staking for all cryptocurrencies. With “stakeability” being such a crucial element of an individual cryptocurrency or token’s features, a complete ban on staking could wreak havoc across the crypto community. This is where Vulcan Blockchain comes in, with its innovative solution that solves this problem via Auto-Staking.
Auto-Staking – The Way Forward
Before we look at the incredibly unique concept that is Vulcan Blockchain, let’s better understand exactly what “standard” staking is, so we can fully appreciate the idea behind auto-staking.
Staking is an excellent way for cryptocurrency holders to make money, but without selling their cryptocurrency and effectively “lending” their crypto and receiving a reward/return for it. It’s similar to how you can put your money in a high interest savings account, and receive interest payments on the amount you deposit.
With staking, crypto investors lock away their asset for a particular period, and this helps to run the particular blockchain it’s affiliated with.
The SEC vs. Staking
According to a recent article by Bloomberg, the head of Coinbase Inc. Brian Armstrong has suggested that the SEC is rapidly clamping down on staking activities, with an intention of fully banning the concept. Brian Armstrong has been quoted as saying there are rumors that the SEC’s intention is to “get rid of” staking completely.
This has naturally caused a lot of concern across the crypto industry. An article by MarketWatch mentioned that Coinbase received $62 million in revenue in the three months preceding 30th September 2022 from staking, or “blockchain rewards”. When you consider this was 10% of its revenue for this period it’s no surprise that the idea of a complete ban on staking has naturally caused a lot of concern for Coinbase, who are the world’s largest crypto exchange, as well as other exchanges such as Binance.
To make matters worse, the SEC recently forced one of the largest cryptocurrency exchanges, Kraken, to completely shut down its staking service. This not only had a huge impact on Kraken, but also resulted in them having to pay the SEC an eye watering $30 million in penalties. Luckily, the innovative mind of Vulcan Blockchain’s founder, Bryan Legend has meant that there is a way forward for the crypto community with its unique Auto-Staking proposition.
Vulcan Blockchain and Auto-Staking
Bryan Legend is the man behind Vulcan Blockchain, who has a proven track record of success in the crypto industry.
According to Business Insider Africa, In 2022 Bryan Launched SAFUU, a “decentralized finance (DeFi) protocol designed to deliver sustainable asset funds for individual users”. SAFUU was a success, allowing investors to receive an excellent rate of return on their principal investment.
Bryan has subsequently launched OOXY Labs, and now is readying himself for the launch of Vulcan Blockchain, the first of its kind, functioning as an “auto rebasing layer one blockchain”.
The main idea behind this is to expand the vision of DeFi throughout the blockchain, and according to Vulcan “every project that is launched on Vulcan is instantly a DeFi protocol due to our core Auto-Rebasing technology inherited from Vulcan’s native coin $VUL”.
Vulcan’s unique focus on Auto-Staking, and auto compounding means that investors can earn rebased tokens as interest payments. With the Vulcan Blockchain protocol being the first auto rebasing solution, this means that the supply of circulating coins are automatically distributed, and in Vulcan’s case this is every 15 minutes with a 44% APR.
The Fire Pit is Vulcan’s specific burn mechanism, which ensures the constant reduction of total supply, in line with the amount of transactions occurring on the blockchain. In fact, 80% of the total transaction fees are sent to the Fire Pit by default. This in turn helps with keeping price fluctuations to a minimum and sustainability at the forefront.
The other benefit of Vulcan is that it offers an auto compounding solution, so all investors and holders of its native token, $VUL will have their ownership increase with every epoch.
Summary
Vulcan Blockchain is simply way ahead of the game, and its founder Bryan Legend and his team have worked tirelessly to create a unique concept that’s the first of its kind. It offers a multitude of benefits, not just with the Auto-Staking feature but the fact that its auto rebasing solution automatically adjusts the supply, reducing volatility and ensuring supply is controlled. The auto compounding feature is yet another amazing part of Vulcan’s offering, with investors being able to receive regular interest payments as rebased native coins.
The SEC’s constant crackdown on what seems to be all staking activity within the industry is further proof that a move towards decentralized platforms and protocols will only gather momentum. It seems that this ban towards staking will not be a matter of if but when. When this happens, we can expect to see not just retail investors, but also institutional investors gravitate towards Vulcan Blockchain and its unique auto-staking proposition, and they will surely come in their droves.
