EOS: a new proxy reward system

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A new reward for active EOS blockchain participants has just been announced. 

This time the initiative originated from a Block Producer (BP). GenerEOS wants to reward all those who vote for a proxy with a new token: GEN.

All the details about this token can be found in the official press release and we can find out that its purpose is to encourage voting on this blockchain, thus increasing the APR received when voting for a proxy.

EOS reward: how will GEN work

As we have seen previously, it is very easy to vote on the EOS blockchain. When voting for proxies that provide compensation, the so-called reward proxies, the voters receive tokens because they voted.

In essence, it is a way to encourage the project community to stay active and help with the management.

And it is precisely this concept that leverages the GEN team, which has developed a smart contract in which several proxies participate.

So, all those who are part of it, and by extension all users who vote for these proxies, are entitled to receive the GEN token in proportion to both the EOS staked and the daily tokens. This is handled like an airdrop, automatically.

The token in question has a supply that is identical to Bitcoin (BTC), 21 million, and replicates some features like the halving system, but in the case of GEN, it happens every 3 months until all the tokens are mined.

These will be the functions of the reward token:

  • To use these tokens as a voting system for the various proposals that can be made, such as those related to the WPS (Workers Proposal System);
  • To increase the APR for the proxies being voted, staking these GEN tokens. The staking system is not yet active but will be released later;
  • A loyalty system for those who cast their votes to a particular proxy;
  • The ability to get staking rewards on other blockchains and protocols.

More than 15 million tokens will be distributed and there will also be a buyback as well as a burning system considering that the team will use 40% of its resources to buy tokens and destroy them on a daily basis.

This will only decrease the supply and theoretically drive up the price of the token.

It is possible to imagine a yield farm with this token, as it will occur on a daily and automatic basis.

Users will vote for a proxy, wait for the reward and thus receive the token, which they can resell for EOS and stake the same EOS to obtain more GEN.

   

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