The big question that is being asked by the average crypto trader, miner as well as owner is whether they should be compensated for taking part in the crypto discourse. Crypto, at this stage, receives its power from its communities. This is true for almost all cryptocurrencies and all the subfields related to them. Whether it be Bitcoin, Ethereum, or hybrid wallets, the involvement and active participation of the community is of paramount importance. Underlying this question is the possibility of making cryptocurrency a sustainable future business model.
The Case Study of DogeCoin
When DogeCoin hit the markets, it was popularized by meme pages and, of course, Elon Musk. Due to its popularization, its price skyrocketed. The case dogecoin made one thing clear – it’s all about what’s trending. The attention of the people is the greatest product in today’s digitalized market.
If someone is talking about a product, they are giving it a financial boost that is perhaps not possible with any other traditional marketing tactic.
The question then becomes: should users of crypto be compensated for what they bring to the table? To answer this question, the crypto markets will have to create a completely new digital ecosystem for the users. Although, it’s not as new as many might consider it to be. The answer to that question is staking. Staking is basically rewarding the early adopters of a particular cryptocurrency and the loyal customers with some incentives. In traditional offline markets involving small businesses, this is already a well-established informal phenomenon. All staking would do is give it some structure and bring it to the digital world of crypto.