Do you hold KMD? We have news for you: you could be getting KMD Rewards!
This unique property somewhat resembles the ‘staking’ mechanism, which all Proof of Stake blockchains have. Komodo, however, is a Proof of Work cryptocurrency with the delayed Proof of Work mechanism built on top.
With most PoS systems, users are required to “Stake” their coins by leaving their wallet open. However, this traditional method has several disadvantages for users. While the process doesn’t require any special hardware or a considerable amount of computing power, users must leave their computer on at all times, and they are forced to keep a copy of the blockchain on their hard drive.
Komodo prides itself on being unique, and this is yet another point where the Komodo Platform stands out among other cryptocurrencies. With Komodo, we don’t require users to “stake” their coins. Instead, KMD rewards are collect when you make a transaction, this can be done using the Agama wallet claim reward function. The reward is capped at 0.417% (5%/12) per month, so users are encouraged to claim monthly to better support the Komodo ecosystem.
Another disadvantage: with staking only one address can receive rewards in any given block. The bigger the balance, the more likely you are to stake, because of this the small accounts might never stake a new block, or at least might need some patience. With Komodo any balance larger than 10 KMD is eligible for KMD Rewards just after one hour. You will be able to see your balance increase each block!
It is also worth noting that the KMD Rewards will eventually disappear once all 200 million KMD coins are mined. We estimate this to take at least 14 years but could take longer.
Thanks for supporting the Komodo ecosystem claiming your KMD Rewards!