What is Elrond
A proof of stake blockchain for smart contract execution, first launched on Ethereum with the ERD token.
eGLD (ERD) token
Is the work token of the Elrond blockchain.
How eGLD (ERD) token works
It is used for staking on Elrond
- Validators earn tokens for operating as a node. (up to 36% APY)
- Delegators can delegate their stake to validators and earn tokens.
How Elrond works
Elrond uses a Secure Proof of Stake (SPoS) consensus, which randomly samples and reshuffles validators and based on data such as size of stake and node rating.
- Performance: 15.000 current TPS, 6s block time, $0.001 tx cost, can scale beyond 100k (263k TPS in testnet)
- Developers: royalties – 30% SC gas returned to authors, full IDE, Rust framework with debugger
- Validators: 36% APR for running nodes, low system requirements
- Network setup: 2.169 nodes, with 4 shards
More on SPOS here.
eGLD token issuance
ERD tokens were gradually converted to eGLD tokens from 3rd September 2020 at a 1000:1 conversion rate. Thus, 1000 ERD became 1 eGLD.
- 20,000,000 tokens total supply (year 0).
- 11,415,927 tokens in validator rewards over 10 years (capped).
- 31,415,927 tokens maximum theoretical supply over 10 years.
Elrond’s deflationary “reduced issuance mechanism” means issuance diminishes as the transactions-per-second (TPS) rate goes up.