Among other cryptocurrencies, the Miners’ Reward Token (MRT) is a recent initiative that functions as a stock. Created by the WAVES community, the MRT
Among other cryptocurrencies, the Miners’ Reward Token (MRT) is a recent initiative that functions as a stock. Created by the WAVES community, the MRT stabilizes its growing network by rewarding nodes without inflating the already existing supply of coins. As a stock, the value is fleeting, either increasing or decreasing depending on the market. As it is a product of WAVES, it can be exchanged for the older, more valuable, coin, Waves, simply by using the integrated decentralized exchange in the community’s client.
Being a recent addition to the WAVES network – “a crypto-platform for asset/custom token issuance, transfer, and trading on blockchain” – the MRT aims to incentivize the perseveration of a full node. In order for a blockchain – the heart of a decentralized currency – to function properly and ideally, transaction fees need to happen. The MRT adds more transactions and thus, stabilizes the network as a whole. The MRT is a simple, yet elegant solution to this problem, as creating a new point-of-sale system catering to the WAVES network is conceptually a difficult task.
In short, MRTs are transactions happening at a high frequency, constantly running, fast, and is segregated from other transactions. This isolates the transactions, thus ensuring that it is “safer” and more reliable. The motivation to the creation of the MRT is security. The transactions, because of it, move in a much more stable curve when going around the stock market. It provides high frequency that does not demand any timetable.
When you “mine” on the WAVES network, you preserve a full node. However, it is possible to also benefit from revenue without mining by leasing out your funds to miners, but without never losing complete control of your assets. Instead, you share the profits; it is a stock market. The MRT makes sure there is incentive to mine as you are rewarded for your transaction fees. These tokens can later be used depending on the market and its value, and as said, otherwise be exchanged for ordinary Waves coins.
Furthermore, the MRT, much like the Hacker’s Gold (HKG), allows miners to cast their vote when it comes to certain network parameters and other changes to the network that might affect them. It is also possible to increase the value of the MRT by collaboration with new asset issuers who work without mining, as it is possible to use the tokens as transaction fees. As a cryptocurrency, there is no centralization of the transaction. When exchanged for a Waves token, it can be used ordinarily on the open market. As any other crypto-platform; accumulate and wait for the value to increase, trade or hold, these are the options.
Overall, as the number of transactions were low, WAVES introduced the MRT to bring incentive to setting up nodes and thus, from that, to mine, and bring activity to network and make the circulation of revenue greater. That is the recipe for a successful, beneficial stock market; constant activity and flow of currency, in this case administrated safely by the crypto-characteristic blockchain. As it is a new initiative, most miners currently hoard their tokens, waiting patiently for their value to increase.
The network, as well, has yet to reveal what upgrades and promotions the miners can vote upon by using their tokens. If you are a miner, you earn up to 1 % of your holdings monthly.