Highlights from the ChainDD AMA with KuCoin Global CEO Johnny Lyu
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On March 27, 2020, KuCoin Global CEO and co-founder Johnny Lyu, along with TRON founder Justin Sun, took part in a panel discussion at the ChainDD AMA session about the development of the staking economy and service in 2020.
Here are some of the highlights from the AMA.
**At the beginning of 2019, the staking economy began to be widely known and recognized by the market and investors. The rapid growth of the service and mechanism has formed an inevitable trend to impact the succeeding year of the crypto market. According to statistics from Staking Rewards, as of March 2020, there are 73 projects participating in staking in the cryptocurrency market. Will the staking economy continue to grow rapidly in 2020?**
Johnny believes that the current staking service is still at the infancy stage, the applications and scenarios are limited. As long as there’s a huge demand for staking in the market, it’s obvious to forecast that the clock for rapid development in the future has wound up. Just like BTC, the throne could not be toppled as it subdues the market from the tremendous powers. Among other assets other than BTC, the ability to on-chain governance is undoubtedly the key factor to influence the user’s scale of a project. PoS is the key to governance on the chain in full dimensions.
Since Ethereum has brought the community governance on the smart contract chain, the folks could see the rise of the blockchain and so does the existence of KuCoin. Then, we could say 90% of crypto assets other than BTC in the future may purely gene in PoS or a hybrid PoS, such a project like DCR is telling the story.
Justin’s view about staking is more inclined to a new gateway to governance the community than a rewarding type. By only introducing more users to join the staking with a lower threshold, can the propeller could drive the development of the blockchain even faster. The staking economy is one of the key kits to promote the entire industry.
**The problem that plagues investors and exchanges at all times is the lack of liquidities. There have been many exchanges in the market that are trying to provide liquidity solutions for the staking economy. KuCoin previously launched the Pool-X PoS platform to tackle the issue. How is the current development status of Pool-X?**
Johnny described the features of Pool-X, that is to say, it is a mining pool or a liquidity product and also a liquidity exchange, an infrastructure product that solves liquidity issues for all staking services. In addition, Pool-X is also a community-based project. The appearance of Pool-X represents the attributes of “Without Original Sin”, which the project is free from fundraising and no reserved tokens by the team.
The operation mechanism of Pool-X is to map the staking tokens to a certain tradable credit. The liquidity problem is solved when users complete the trading or transaction of the credit. This will increase the staking pledge rate and release liquidities of a staking token through trading the mapped credits on Pool-X. The mechanism also effectively prevents further assets loss when meeting the price fluctuation of a token.
Pool-X has been widely used by more than 300,000 users globally since the launch of the platform. Now it has 8 collaborative staking projects, more will join the platform in the future to better support industrial ecology.
Justin highly expressed the professionalism of the KuCoin team. The Pool-X model is very user-friendly and has made innovative moves in the entire staking industry. The lock-up mining model is fully demonstrated on the Pool-X platform and so does the staking income and liquidity are both achieved on Pool-X, which leads to a positive effect on the development of the entire staking economy.
KuCoin and TRON have also become the first batch of beneficiaries of Pool-X. With the mass utilization of the platform globally, KuCoin has gained a remarkable number of high-quality users in the blockchain field such as PoS participants. On the other hand, TRON and other ecological projects have received liquidity support from the beta version of Pool-X, which can better activate community participation.
By successfully implementing the node management mechanism, Pool-X will launch the budget system to empower the nodes to determine the staking performance. The team applies tokens from the node as a development budget. The method essentially achieves the goal of community self-governance.
The distribution of POL is made through[ **LockDrop**](https://pool-x.io/lockdrop), some of these POL can be unlocked by the user’s staking performance in Pool-X, and the scale of POL circulation expands when more performances are engaged.
Pool-X mining pool token POL is also the first decentralized mining pool point/credit issued based on the TRON’s TRC20 protocol. The reliability and the ecology of the TRON TRC20 protocol are not only backed by strong community support but also by its full compatibility with ERC20.
**On aspects of infrastructure**
1. The exchange will continue to optimize the trading system and user experience, with focus on Margin and Futures trading.
2. KuMEX (Futures Trading) is going to launch the USDT feature soon which indicates the expansion of the trading category and there will be a release of mixed magin and new cryptocurrencies in the near future.
3. KuCoin will keep on enriching the contract trading market by giving user-friendly applications to newbies in different countries.
4. More efforts will be put on public chain development.
5. Pool-X will be transferred and promoted from centralized exchange to DEX.
Johnny stated that these key tasks can bring more high-quality users and industry recognition.
**On aspects of returns**
The decentralization attempts that we endorse on Pool-X and KuChain are not strongly binding and relevant to the interests. As long as the platform is in the premise of smooth operation, we will push it to the stage of community governance.
It is believed that there are many reasons for the failure of projects, one could originate from the debt generated from the previous fundraising activities that ultimately needs to be paid by the community participants and chain users.
On the other hand, the lack of user base or user acquisition capability could also be the downfall of a project. However, Pool-X has established this strength in avoiding such circumstances. So, this will enable the team to focus more on investment in R&D as well as introduce the first round of seed users to the network.