The prospect of earning passively and having your crypto work for you have titillated the minds of both new and seasoned crypto investors alike. With literally thousands to choose from looking for the best proof of stake coins might be a daunting task. Do not fret as today we will explore the best proof of stake coins in the market right now.
Proof-of-Stake (PoS) coins seem to have been getting much attention from crypto investors nowadays as major cryptocurrency exchanges, crypto wallet and even custody solutions providers have started integrating staking services into their platforms. Even existing crypto projects are trying to incorporate this feature. The second-ranking cryptocurrency in the world by market capitalization, Ethereum, is planning to migrate to this consensus algorithm due to its inherent advantages over Proof-of-Work (PoS) which the Ethereum Network currently uses.
Moreover, PoS tokens provide cryptocurrency investors an easy way to augment their token holdings by enabling them to earn passive income with the PoS digital assets they already have. Furthermore, has been proven to be an effective and more lucrative way of earning cryptocurrencies than just “hodling” them and waiting for the market value of tokens to increase. As such, many PoS type tokens have launched and many more under development including existing projects that want to incorporate this staking feature resulting in a deluge of PoS token options that may overwhelm investors.
Nonetheless, like in any other investments, investors should do their due diligence in determining which is the best Proof of Stake tokens for them. The best Proof of Stake coins may vary depending on the reviewer’s personal preference. It may even defer for retail and institutional investors given the different priorities and financial resources available at their disposal. That being said this article will help prospective PoS “staking” participants to determine for themselves which is the Best Proof of Stake coins for them by presenting a curated list of PoS coins they might want to consider. Before anything else let us do a quick comparison between PoS and PoW.
What is Proof of Stake?
Proof-of-Stake (PoS) is a distributed ledger consensus mechanism that has been determined to be a viable alternative to the Proof-of-Work (PoW) protocol. It has been described as a more cost-effective and efficient way of securing transactions over a distributed network. Unlike PoW the PoS protocol does not require expensive, quickly outdated and hard to set up crypto mining equipment which has been the major barrier to entry for would-be PoW participants called miners.
Miners vs Validators
Miners are operators of cryptocurrency mining equipment that solves machine-generated cryptographic problems for a chance to write the next block on a blockchain and get the block rewards in the process and part of the transaction fees paid by users of the said blockchain. This helps secure PoW-based networks by ensuring that there is only one version of the “truth” and thus achieving consensus over a distributed network. This consensus mechanism is generally considered expensive and wasteful of energy resources but it is widely accepted as the most secure and most decentralized consensus protocol up until now.
Conversely, PoS “validators” takes on the role of “miners,” but instead of operating crypto mining machines, they are only required to hold and “stake” a certain amount of PoS digital tokens or coins to participate in the validation process. This takes away the cost of having to set up the infrastructure for mining activities including the accompanying risk in mining operations— fluctuating energy cost, changing regulatory policies, and wear and tear of mining equipment. This means that anyone interesting in participating in staking will be able to do so right away, so long as they meet the minimum required tokens and have “Staked” these tokens.
Staking is the process of “locking,” “freezing,” or “setting aside” a certain amount of digital assets to qualify for staking rewards. However, the minimum tokens requirement varies from one project to another. This may range from one dollar’s worth of tokens to several thousand. Nonetheless, as a general rule in PoS tokens the more you “stake” the higher your chances to be a validator and receive validations rewards. In PoS terms investors with higher “stakes” are similar to “miners” with more powerful mining equipment having more chances to write the next block and get the block rewards.
Delegated Proof-of-Stake (DPoS)
The process of staking is not unique to PoS consensus protocol as it is also used in a relatively newer consensus mechanism dubbed as the Delegated Proof-of-Stake (DPoS). In delegated Proof of Stake investors (people who stake their tokens) do not directly get involved with the block creation or validation processes of a distributed ledger network. Once their delegated Proof of Stake coins or tokens are “staked,” “frozen” or “locked” they will be able to delegate the “weight,” “power” or “shares” to “delegates,” witnesses,” “block producers” or “representatives” which participates in the actual creation and validation of blocks on their behalf.
In addition, like PoS coins, each DPos coin project will have its rewards structure, block time, minimum staking requirements and “stake time lock” or “withdraw delay” required to “undelegate.” Since, “staking” is required for both PoS and DPos consensus protocols, for simplicity, we will collectively call PoS and DPos tokens “Proof-of-Stake Tokens” in this article.
As stated earlier there had been a deluge of Proof-of-Stake tokens in the market, making it harder for investors to choose which tokens to invest in. To help our readers to identify which one they might want to consider we will be sharing a curated list of the best Proof of Stake coins based on the combination of these following criteria— staking yield, total staked in the network, risks, ease of entry and utility of tokens; to identify the very Best of Proof-of-Stake Tokens.
Staking yield pertains to the annualized percentage rate rewarded to staking participants. While this changes from time to time it is an effective estimate of the earning potential of a project. Along with the total, staked tokens are simply the sum of all the staked digital assets in a PoS blockchain. This shows the confidence of market players to a particular project.
Risk, on the other hand, is the degree by which investors are exposed to price fluctuations, regulatory concerns, and liquidity. Projects that are less likely affected by these risks rank higher. Ease of entry describes the financial and technical requirements for tokens holders to participate. PoS tokens with less required tokens to participate rank higher as well as those requiring less technical know-how.
Lastly is the utility of the PoS token. Tokens that have other use-cases ranking higher since it ranks higher.
The curated Best Proof of Stake Tokens list was created after painstakingly selecting 32 of the most profitable, most established and exciting projects in the PoS/DPoS market. The initial list was comprised of the following:
Algorand, Ark, Cardano**, Cosmos, Dash, Decred, Energi, EOS, Ethereum*, IOST, IoTex, Harmony**, Komodo**, Lisk, Livepeer, Loom, NavCoin, NEM, NEO, NULS, Ontology, PIVX, QTUM, Steem**, Stratis, Synthetix, Tezos, TomoChain, TRON, V System, Vechain** and Waves.
* Staking mechanism not yet fully implemented
** Lacking data required for the above-mentioned criteria
Six projects on the list were stricken out due to two major reasons: Lack of data required to make a fair and sound evaluation of the project and not fully implemented staking mechanism.
Among the six projects that were removed from the list were two top 10 cryptocurrencies in terms of Market capitalization, Ethereum, and Cardano. Ethereum (ETH) would have ranked amongst the highest of all the projects due to its proven track record, value potential and great utility for thousands of decentralized applications DApps. It was removed from the list since its PoS mechanism is not yet fully implemented.
Cardano (ADA) prides itself on being one of the most refined projects in the PoS ecosystem backed by developers that are not only highly competent in distributed ledger technology but have been known to be innovators in the space due to their strong background on research and development. It was removed from the list due to a lack of data needed for a fair assessment of the project, the same goes for Harmony, Komodo, Steem, and VeChain.
The removal of the said projects from the list does not reflect a bearish attitude towards these projects, but rather, the difficulty of assessing them properly within the criteria considered. If one looks closely these projects are amongst the most innovative and promising in the PoS/DPoS space.
The 24 remaining PoS/DPoS projects were then vetted using the metrics stated earlier, trimming the list further to 10, giving us some of the Top 10 Best Proof of Stake Coins currently out right now:
Algorand, Cosmos, EOS, IOST, Ontology, Tezos, TRON, Synthetix, V System, and Waves.
To have a greater understanding of why these projects were deemed to be the Best Proof of Tokens we will discuss the merits of each project, giving a short but detailed introduction, stating its unique value proposition as well as sharing the pros and cons. Now without further ado let’s head into the list of the best Proof of stake tokens.
TOP 10 Proof of Stake Coins
Rank 10 best Proof of Stake coins: Synthetix Network Token (SNX)
First on the list is Synthetix Network. It is a decentralized digital asset issuance platform that enables the Synthetix team to create synthetic assets that are collateralized by the Synthetix Network Token (SNX). Moreover, these synthetic assets collectively called Synths are backed by SNX tokens to provide, what the team claims, infinite liquidity, and zero slippage trades. The types of assets that can be converted to Synths include fiat currencies, commodities, cryptocurrencies, and inverse currencies.
Moreover, SNX Tokens can be staked using “Minter,” a staking mechanism created by the Synthetix developers to carry out the minting process of new SNX tokens triggered and quantified by the relative token staking holdings of participants. Total SNX to be shared is determined by the network captured 0.3% trading fees generated from Synths exchanges from the Synthetics Exchange. This is where the value of SNX token is derived.
Token name: Synthetix Network Tokens (SNX)
Total supply: 143,269,231 SNX
Staked tokens: 51 Million USD worth of tokens (ranked 11)
Min to stake: 1 SNX (ranked 11)
Est. yearly yield: 79.02% (ranked 2)
Current Price: $0.44501 (USD)
No. of Markets: 15 (ranked 22)
Consensus Type: Proof of Stake (PoS)
- Synthetic asset issuance platform allowing exposure without holdings underlying asset
- Pooled collateralization model for liquidy and zero slippage in trading
- Creation of Inverse digital currencies that has an inverse value of the underlying asset
- Permissionless on-chain trading
- Passive income through Staking SNX
Rank 9 best Proof of Stake coins: Algorand (ALGO)
Algorand is one of the newer blockchain projects in the list and one that as been gaining much attention lately from the cryptocurrency community since its main net launch mid this year. The main aim of the project is to create a borderless economy that is inclusive and transparent to build prosperity no matter where. Apart from this, it was developed by Turing Award winner (Nobel prize equivalent for computing), MIT Professor and zero-knowledge proof, Silvio Micali.
The project aims to address the blockchain trilemma, the trade-off between security, decentralization, and scalability. The unique design of the Algorand protocol enables it to produce new blocks in less than 5 seconds with immediate finality. Additionally, the protocol also allows developers to generate new fungible tokens and execute atomic multi-party transfers (AMPTs) without the use of smart contracts, thereby avoiding unnecessary computational and transaction costs using virtual machines.
Token name: Algorand (ALGO)
Total supply: 10,000,000,000 ALGO
Staked tokens: 443 Million USD worth of tokens (ranked 3)
Min to stake:: 1 ALGO (ranked 5)
Est. yearly yield: 7.35% (ranked 14)
Current Price: $0.21646 (USD)
No. of Markets: 66 (ranked 14)
Consensus Type: Pure Proof Of Stake
- A consensus algorithm without sacrificing security, scalability, and decentralization.
- Layer 1 implementation of core functionalities.
- Smart contract-less fungible tokens generation.
- Smart contract-less execution of atomic multi-party transfers.
- Pure Proof of Stake.
Internet of Services is a blockchain project that aims to provide enterprise-level blockchain infrastructure that is secure and scalable enough for multinational corporations applications. IOST team plans to leverage its unique sharding architecture and consensus mechanism to make this happen. The team is composed of 50 blockchain multi-awarded professionals from prestigious universities around the world as well as major industry giants.
IOST developers claim that their blockchain can handle 100,000 transactions per second that are made possible through the implementation of novel computing processes such as Efficient Distributed Sharding (EDS) scheme, TransEpoch assignment procedure, Atomix commit protocol, Proof-of-Believability (PoB) consensus algorithm, Micro, and State Block (MSB) resource processing.
Token name: Internet of Services Token (IOST)
Total supply: 21,000,000,000 IOST
Staked tokens: 20 Million USD worth of tokens (ranked 18)
Min to stake:: 1,000 IOST (ranked 16)
Est. yearly yield: 11.84% (ranked 6)
Current Price: $0.21646 USD
No. of Markets: 108 (ranked 8)
Consensus Type: Proof Of Believability
- An enterprise-ready blockchain infrastructure that can scale for mass adoption without sacrificing security.
- Novel sharding schemes to help it attain high transactional throughputs.
- Implements Proof of Believability consensus mechanism that the team claims to be more decentralized than other protocols.
- Creation of fungible tokens and non-fungible tokens.
Rank 7 best Proof of Stake coins: Ontology (ONT)
The Ontology blockchain project introduces a new kind of consensus protocol that enables it to scale better without sacrificing security and decentralization. Dubbed as VBFT it is a new kind of consensus mechanism that combines Proof of Stake (PoS), Byzantine Fault Tolerance (BFT) and Variable Random Functions (VRF) with a transaction speed of more than 3,000 TPS. ONT is a complete distributed ledger infrastructure that is modular, pluggable and customizable for various distributed applications.
It has three infrastructure parts. ONT Blockchain, the base infrastructure, ONT Blockchain framework, a modular and customizable framework for different applications, and ONT Interaction Protocols, to make the platform work across different blockchains and devices. It has a decentralized identity framework and a decentralized data exchange and collaboration framework. This new blockchain also features a two-token system as a deterrent to price volatility.
Token name: Ontology (ONT)
Total supply: 1,000,000,000 ONT
Staked tokens: 47 Million USD worth of tokens (ranked 12)
Min to stake:: 1 ONT (ranked 8)
Est. yearly yield: 2.95% (ranked 22)
Current Price: $0.21646 USD
No. of Markets: 119 (ranked 7)
Consensus Type: VBFT
- A HIgh-performance public blockchain that is modular and customizable for different applications.
- It implements a dual-token system and adopts ONT as a governance token and ONG as the utility token.
- Smart contracts
- Distributed verification management
- Decentralized data exchange
Rank 6 best Proof of Stake coins: V System (VSYS)
The V System is a general-purpose blockchain infrastructure provider that is spearheaded by Sunny King, the creator of Proof-of-Stake (PoS) consensus protocol and two crypto projects, Peercoin and Primecoin. The project wants to position itself as a blockchain-enhanced general-purpose object-oriented database and cloud service provider. To cater to a wide range of applications and industries, the V System is designed to be modular, pluggable and customizable that is compatible with different types of blockchains.
This is made possible by leveraging Supernode Proof of Stake (SPoS) consensus protocol which has been described by the team as the next evolution of PoS that will enable high-performance blockchain systems. SPoS is not only blazingly fast (1 second block time) but is more predictable and stable. The main currency of the platform is V System Coins (VYS) and is used as a reward for producing blocks and platform currency for function use, such as resource usage from projects built on V System and decentralized database cloud services.
Token name: V System (VSYS)
Total supply: 5,381,254,128 VSYS
Staked tokens: 121 Million USD (ranked 7)
Min to stake:: 1 VSYS (ranked 4)
Est. yearly yield: 15.22% (ranked 4)
Current Price: $0.0767 USD
No. of Markets: 43 (ranked 15)
Consensus Type: Supernode Proof of Stake
- Fast, stable, predictable and cost-efficient (energy and monetary cost) consensus protocol.
- Designed to be a general-purpose blockchain-based database and cloud platform.
- Pluggable blockchain support.
- Smart Contract, Side-chain, and Cross-chain functionality.
- Stake liquidity with staking participants able to move their “staked” or “leased” coins instantly
Rank 5 best Proof of Stake coins: Waves (WAVES)
Waves platforms is an open-source distributed network that aims to usher in Web 3.0 applications by offering customizable decentralized solutions that empower users to have total control of their digital assets, personal data, and privacy. It is also designed for enterprises that plan to leverage blockchain technology for security, operational efficiency, transparency, and verifiability. The team can do this by providing a complete suite of solutions to support the backend of Web 3.0 services which includes a protocol layer, infrastructure layer, and applications layer.
The protocol layer consists of a consensus protocol called Leased Proof-of-Stake (LPoS), an optimization protocol called Waves-NG, a features activation protocol and a slew of cryptographic and validations rules and transaction models. furthermore, the infrastructure layer consists of an Integrated development environment, Waves Smart contracts programming language (RIDE) and various API libraries and tools. Finally, the application layer consists of all the DApps running on the network such as the decentralized exchange, mobile apps, and others.
Token name: Waves (WAVES)
Total supply: 100,000,000 WAVES
Staked tokens: 35 Million USD (ranked 13)
Min to stake:: 1 WAVES (ranked 10)
Est. yearly yield: 7.53% (ranked 13)
Current Price: $0.92 USD
No. of Markets: 681 (ranked 1)
Consensus Type: Leased Proof of Stake
- Tokens creation platform that enables non-technical users to create digital assets called “Smart Assets”
- Decentralized Internal Exchange with an easy to use client-facing interface
- Two (previously three before Oct 1) tokens associated with Waves platform: The Waves token, the primary token that has access and block creation rights and the Waves Community Token (WCT) is a governance token for voting and community activities.
- Decentralized Tokens Rating System
- Decentralized governance
Rank 4 best Proof of Stake coins: EOS (EOS)
EOS.IO is the third blockchain brainchild of Daniel Larimer, the creator of Delegated Proof Of Stake (DPoS) consensus protocol and co-founder of both Steem and BitShares. EOS.IO aims to become the premier smart contract platform and decentralized operating system for industrial-grade decentralized applications. The EOS blockchain emulates a massive computer operating system that allocates scarce resources for decentralized applications such as CPU, Network, and RAM. CPU and Network are obtained by staking EOS, the main cryptocurrency of the platform, RAM, on the other hand, can be bought with EOS.
EOS transactions are superfast with only half a second to confirm transactions and around two minutes to achieve finality. Aside from being the main currency for scarce computing resources EOS token also acts as a governance token were users can use it to vote for block producers. The EOS platform proved to be highly successful as it has become one of the largest smart contract platforms in the crypto space today, only being surpassed by Ethereum.
Token name: EOS (EOS)
Total supply: 1,012,836,253 EOS
Staked tokens: 1,290 Million USD worth of tokens (ranked 1)
Min to stake:: 1 EOS (ranked 15)
Est. yearly yield: 1.84% (ranked 24)
Current Price: $2.95 USD
No. of Markets: 634 (ranked 2)
Consensus Type: Byzantine Fault Tolerance Delegated Proof of Stake BFT-DPoS
- Very high-performance Smart Contract platform that the EOS team claim can scale to millions of transactions per second.
- Complete removal of transaction fees.
- An adaptive distributed ledger technology that can be customized for a variety of applications for permissionless or permissioned blockchains.
- Secure parallel and sequential performance.
- Customizable permission schema.
Rank 3 best Proof of Stake coins: Tezos (XTZ)
Tezos is a Switzerland-based general-purpose blockchain that has been under development since 2014 and was developed and co-founded by ex-Morgan Stanley Analyst Arthur and Kathleen Breitman. It is a multi-purpose smart contracts platform for decentralized applications that features self-amending protocol via its on-chain governance model. Moreover, this self-correcting feature makes it an ideal decentralized consensus platform that has a meta-consensus capability, allowing it to support a wide range of consumer and industrial applications that aims to leverage distributed ledger technology.
Its on-chain governance model allows stakeholders to approve changes to the protocols enabling them to evolve autonomously, amending their code. This allows Tezos to upgrade itself without having to split into two distinct blockchains. Moreover, Tezos uses a PoS type consensus mechanism called Liquid Proof of Stake that allows participants to use their tokens as governance tokens, rights to vote on amendments, and as primary tokens for transactions and claiming rights for block creation process called baking. Everyone can participate in Baking even smallholders by delegating XTZ to block creators called bakers, a pooled Tezos account that has 10,000 or more XTZ (1 Roll).
Token name: Tezos (XTZ)
Total supply: 813,114,290 XTZ
Staked tokens: 522 Million USD worth of tokens (ranked 2)
Min to stake:: 1 XTZ (ranked 9)
Est. yearly yield: 6.94% (ranked 16)
Current Price: $0.913 USD
No. of Markets: 74 (ranked 11)
Consensus Type: Liquid Proof of Stake
- On-chain Governance.
- Self-amending protocol.
- Smart Contracts and Formal Verification.
- Easily participation in block creation activities (baking) through delegations.
- Incentivization of approved proposed protocol improvements.
Rank 2 best Proof of Stake coins: Cosmos (ATOM)
Cosmos has been dubbed by its developers as the Internet of Blockchains, made up of highly scalable, independent and parallel blockchains that can interoperate with each other over a distributed network. It not only provides a solution to the blockchain trilemma— scalability, security, and decentralization) but offers interoperability, a value-added feature necessary to significantly increase the utility of blockchain-based applications.
In addition to this, the team leveraged Tindermint BFT, a consensus protocol that packages the networking and consensus layers of a blockchain in one generic consensus engine. This consensus mechanism has a block time of 1 second that can process 10K transactions per second with Instant finality. It is also adaptable to permissioned and permissionless blockchains and it is highly secure with proof-of-fork accountability features. The application layer is then connected to this generic consensus engine via the Application Blockchain Interface (ABCI) using readily available Cosmos Software Development Kits (SDK).
Token name: Cosmos (ATOM)
Total supply: 237,928,231 ATOM
Staked tokens: 448 Million USD worth of tokens (ranked 4)
Min to stake:: 1 ATOM (ranked 13)
Est. yearly yield: 9.88% (ranked 9)
Current Price: $2.64 USD
No. of Markets: 104 (ranked 9)
Consensus Type: Tindermint BFT
- Ultra-fast Tindermint BFT consensus protocol.
- Layered blockchain architecture design (Application layer, Network, and Consensus).
- Programming Language agnostic Application Blockchain Interface (ABCI).
- Accessible Cosmos SDK and application layer framework.
- Inter-Blockchain Communication Protocol (IBC) and proxy-chain functionality.
- Hubs and Spoke topology (Hubs and Zones).
- Fork accountability feature.
Rank 1 best Proof of Stake coins: TRON (TRX)
TRON is a relatively new blockchain project that aims to provide users with a decentralized global distribution network to establish a truly decentralized Internet. It offers deployment of smart contracts via its Tron Virtual Machine (TVM) that originated from Ethereum’s Virtual Machine (EVM), making all EVM smart contracts compatible with TVM. Furthermore, Tron Network leverages Delegated Proof of Stake consensus mechanism to create a high throughput, high scalability, and high availability blockchain ecosystem, reaching high bandwidth averaging 2,000 Transactions per second. By combining regenerative “Bandwidth” and “Energy” concepts into its core architecture layer, it can offer almost fee-less transactions and accounts creation.
In addition to this, by leveraging and improving upon available open-source technology from other leading projects and incorporating its technology it has grown to become one of the largest blockchain platforms in the whole crypto space. Integral to its success is the aggressive marketing style of its leadership to lure in developers into its platform as well as keeping a high level of engagement with the cryptocurrency community through several incentivized awareness activities. This is on top of several successful partnerships, collaborations, and business acquisitions. Most prominent of all is the acquisition of Bittorent, one of the most successful implementations of a distributed network. Several projects are already in the pipeline to leverage its Bittorrent.
Token name: Tronix (TRX)
Total supply: 99,281,283,754 TRX
Staked tokens: 118 Million USD worth of tokens (ranked 8)
Min to stake:: 1 TRX (ranked 2)
Est. yearly yield: 4.13% (ranked 21)
Current Price: $0.0163 USD
No. of Markets: 108 (ranked 8)
Consensus Type: Delegated Proof of Stake (DPoS)
- A high-performance blockchain that is scalable and secure.
- A suite of development tools for fast and easy deployment of decentralized applications
- Feeless-like transaction model through regenerative resources like “Bandwith” and “Energy” that replaces “Gas” fees
- Easy and almost free account/wallet creation
- Ethereum compatible Virtual Machine: Tron Virtual Machine
We created the list using data available from a wide range of reputable resources. Additionally, readers should note that the result of this list could easily change at any time. This is due to the highly volatile nature of this nascent industry and the velocity by which it changes. Moreover, the perceived value of each project depends on one’s priorities, requirements, and biases. The result of the ranking might have struck a nerve of some readers especially those who are very passionate about their supported project. Nonetheless, this is the result of a painstaking effort to create an honest and objective list of Best Proof of Stake tokens currently available in the crypto ecosystem. Please take the opportunity to express your thoughts about this list in the comments sections below.