Kucoin has announced that the test phase of its next generation proof of stake mining pool is ready. The release from the team stated that the platform which is an independent subsidiary of Kucoin named Pool-X would stimulate future development t of the PoS ecosystem.
Services available on Pool-X include liquidity trading markets, nodes integration and operational solutions among other services.
The platform would enhance liquidity in the proof of stake environment though what it called Proof of Liquidity (PoL) which serves as credits on the ecosystem.
Tackling Inadequate Liquidity
The post on the Kucoin site stated that:
“POL (Proof Of Liquidity) serves the role of credits for Pool-X, helping to record the flow of liquidity certificates and working as the payment method for liquidity bids. Ultimately, POL was created to cope with the inadequate liquidity of staked crypto assets. Due to their nature, zero reservations of POL are to be provided to the team or any individual upfront.”
The release invited users globally to take advantage of the platform claiming that it would benefit not just Kucoin but the cryptocurrency industry in general. It further asks for feedback from the users as they trial Pool-X services.
For more information on how Pool-X would impact proof of stake investments, the platform also released a whitepaper that accompanied the trial version.
According to the FAQ section of the site, the mining processes would comprise POL proof of stake (PoS) mining and staking mining, adding that details would be released when the mainnet of the platform is live.
It also stated that the allocation mechanism would be based on the volume of coins invested by the staking individual or entity. This is determined by what it termed weighting of Adjusted Individual Market Share to Total Adjusted Market Share.
The advantage of this system is that users benefit just like traditional staking and proof of liquidity (POL) allocation. This is a dynamically adjusted soft staking which maximizes benefits to users.