What is Elrond?
Elrond is a Layer 1 distributed transactional computation protocol that relies on a sharded Proof of Stake architecture.
Elrond combines three types of sharding; state, transactions and network, to produce a solution called “Adaptive State Sharding” that improves communication among shards and increases network performance through parallel processing. The network is built on WASM and carries its own Virtual Machine called the Elrond Virtual Machine. This allows code to be written in C++, C, Rust typescript and compiled into WASM.
Why Elrond?
While most other blockchains require custom hardware and high energy consumption, Elrond runs on average computers. By using sharding, Elrond’s performance will scale as more computers join the network. Combined with its “Adaptive” component, the architecture allows for dynamic network configuration to maintain a high level of security while scaling with demand. By solving some of the hardest consensus and sharding problems in the blockchain space, Elrond provides a very high level of performance on a network made of inexpensive computers, resulting in a very low cost per transaction.
Due to its transaction speed, cost reduction, scaling, and security, Elrond can be ideally used for cryptocurrency exchanges, transaction validation, documentation of data generated through payment transactions, contracting or the transfer of rights, and more.
Maiar
Maiar is a mobile app created by the Elrond team to showcase how their blockchain technology can be used to change the future of money. The app privately maps the user’s phone number to a wallet address and allows them to send money to friends and family via their address book. To learn more about Maiar, check it out here.
$EGLD Tokenomics
Elrond has a native token $EGLD, also known as eGold. The main purpose of this token is for paying network fees, accumulating staking rewards and rewarding validators. Elrond initially issued tokens under the ERD ticker on both the Ethereum and Binance DEX blockchains. A total of 20 billion ERD were initially distributed on Jul. 4, 2019, which is now equal to 20 million $EGLD. After its mainnet launch in July 2020, Elrond changed its economic policy and reduced the supply of its native token by 1000x to 20 Million. As part of the transition and token swap, ERD holders were able to exchange ERD for Elrond’s new native token, dubbed EGLD, at a rate of 1000:1.
The maximum supply of EGLD has been capped to 31,415,926 EGLD, which gradually come into circulation as new issuance at a decreasing rate that will reach 0 after 10 years. The issuance is offset by transaction fees, meaning the total EGLD spent on fees is deducted from the issuance. Less EGLD will thus be issued as usage increases and the maximum theoretical supply will in effect never be reached, allowing scarcity to scale with adoption.
Token Distribution
Current Supply: 20,000,000
Premined Rewards and Airdrops : 7%
Investors: 44%
Founders and Project: 49%
Staking
Staking on Elrond can be done either as a Validator or as a Delegator. Delegation can be done in 3 ways:
- Using the Maiar mobile App
- Using the Web wallet
- Using “Delegation Manager” provided by staking providers
Rewards
Elrond has a decreasing inflation schedule for the coming 10 years. The individual staking rate for each validator depends on how many validators run and how much stake they have. Elrond’s minimum guaranteed reward amount will come from fees while the rest will come from inflation. If the cumulative sum of fees during one year is higher than the minimum guaranteed rewards, inflation rate becomes zero and the rewards distributed will be higher than the minimum guaranteed rewards. Otherwise, total fees will just decrease the inflation by the corresponding amount. The rewards are distributed automatically. New Delegator rewards become available each day, with no time limit for when they can be claimed.
Check out the Staking Rewards calculator to check how much can be earned in rewards over time.
Governance
Currently, Elrond is not fully decentralized and centrally manages the protocol improvements and upgrades. Network participants and validators and can still contribute to any changes or proposals since the codebase is open source. Elrond eventually plans to transition to an on-chain governance model whereby EGLD holders can vote on improvement proposals and determine the network’s future direction. This on-chain voting system is still in development.
Figment + Elrond
Figment is one of the world’s leading providers of blockchain infrastructure. Our mission is to empower investors and developers to build Web3, the next generation of the Internet. We are deeply invested in the growth and adoption of Web3. Our team of 20+ Protocol Specialists dives deep into networks like Elrond to provide expert insights into key industry issues including governance, economics, and taxation.
Elrond is running an energy efficient Secure Proof of Stake consensus mechanism. Validators, such as Figment, and delegators stake eGold to secure the network and earn rewards. Figment provides an enterprise level non-custodial staking process and allows delegators to always be in control of their funds. Elrond’s layer 1 solution paired with Figment’s secure infrastructure provides users in the space to stake and earn rewards with peace of mind and given our track record, the assurance that Web3 is optimized for security and reliability.
Achievements and Future Roadmap
Elrond has accomplished quite a bit since its launch in 2018. A few notable achievements are as follows:
- First live blockchain architecture with state sharding
- 15,000 TPS(scales > 100kTPS), 6s latency, $0.001/tx
- Maiar App: buy, store, earn, pay EGLD, BTC, ETH, BNB
- Smart Contracts, Staking & Delegation, Tokens
- Validated through multiple audits from Trial of Bits & others
The future roadmap includes some very exciting milestones with huge developments coming in 2022:
Q2 2022
- Elrond SuperWave
- Elrond Gamify
- Staking Phase 4
Q3 2022
- Maiar App 2.0
- Onchain governance
Q4 2022
- DeFi 2.0: Lending & Synthetics
- Merchant Yield
Q1 2023
- Strategic Multi-country hypergrowth
Read more about Elrond:
