August 11, 2020
In the past six months, the Simple Ledger Protocol has developed massively, and there have been 9,604 SLP tokens formed since the infrastructure launched. Just recently, the news.Bitcoin.com reported on bitcoin, the mineable SLP token that can be extracted with a CPU. Now software developer Chris Troutner has raised tokens called PSF, which are the first SLP tokens that influence UTXO coin-age for wagering on Bitcoin Cash.
In the first week of July, news.Bitcoin.com reported on the Permissionless Software Foundation (PSF). This organization targets to “foster the growth of open-source software and growing adoption of Bitcoin Cash across the globe.”
This week software developer Chris Troutner discussed the PSF project as it has raised the first SLP token that can be staked based on UTXO coin-age. Individuals concerned in reading about the PSF staking process can check out the group’s “grants” page.
Individuals can also read about the SLP token’s staking incentive by reading the group’s business plan. The “grants” page states:
The next airdrop of funding tokens is set to take place on October 15th. To be part of this Funding Token Airdrop, you will need to stake your PSF Tokens by not moving them for two months. This means you must not move your PSF tokens after August 15th. Funding tokens are an important part of the governance mechanism for the PSF community. As described in the business plan, stakeholders receive periodic funding tokens.
Conferring the subject with the project’s “head janitor,” Chris Troutner précised the staking process and said that it was quite simple.
“The biggest hurdle to understanding it is understanding UTXOs,” Troutner emphasized. “As most crypto proponents are aware that UTXOs is the thing that is ‘spent.’ UTXOs are consumed as inputs to a transaction, and new UTXOs are generated as the output of a transaction. Every time a UTXO is generated, it contains a block height.” Troutner added:
So ‘staking” of the PSF Token is based on the block height of the UXTO. The block height, which is part of the UXTO, represents its age or ‘coin-age’. Unlike Ethereum staking, the tokens are not locked in a smart contract. The UXTOs remain completely under the control of their owner. All they have to do is not move their tokens. Moving or spending their tokens would destroy the UXTO and generate a new one, which would destroy the coin-age.
Troutner says that staking is not moving the PSF tokens or spending them for a long time. Moving PSF tokens from one wallet to another will affect the coin-age, so Troutner endorses storing with a paper wallet.
“It’s really easy for newbies to destroy their coin-age, by simply moving the tokens between wallets, or a wallet might do it accidentally in the background. That’s why I recommend people stake their token by sending them to a paper wallet,” the software engineer specified.
According to Simpleledger.info, there were 730,883 PSF tokens created and 160,048 PSF tokens marked, which shows a flowing supply of 570,834. They talked about the exchange rate for PSF as the token does have rendering value to the website, but PSF is presently not registered on an exchange.
During publication, a single PSF is worth $0.439 per token or 0.0014475 BCH per token. Using today’s BCH exchange rate, individuals can get more than 690 PSF for a single BCH. Troutner explained how the PSF value is presently derived.
“The token-liquidity app maintains liquidity between the BCH and the PSF tokens,” the developer explained. “It’s an automated market maker. It was inspired by the original Bancor whitepaper. The token-liquidity app is a JavaScript program with its own BCH wallet. It has an equation that it follows to determine the exchange rate. It’s constantly adjusting its exchange rate based on the balance of BCH and PSF tokens in its wallet.”
The Permissionless Software Foundation plans to influence the funding tokens to strengthen the concept as a decentralized autonomous organization (DAO).
Aside from Chris Troutner, the host of the developer’s monthly video series, David R. Allen is also working with the project. PSF also plans to deliver a “white-label bitcoin cash (BCH) and SLP wallet” as well.
The Permissionless Software Foundation will also be a consulting firm. Further, the team is looking into a vending machine idea that symbolizes SaaS applications.
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