Proof-of-Work (PoW) is a consensus algorithm used to secure blockchains and to create new coins. In order for a new transaction to be accepted and verified, it must be supported by a certain amount of computing power, or “proof-of-work”. This process helps to prevent double spending and other fraudulent activity. Basically, it is the way security works on some blockchains, mostly done through MINERS that mine blocks and use a lot of energy.

Proof-of-Stake (PoS) is a consensus algorithm that is used to validate transactions on a blockchain network. It works by requiring users to stake their coins or tokens as collateral in order to validate transactions. In return, the users receive rewards in the form of new coins or tokens. PoS is seen as an alternative to the more common Proof-of-Work (PoW) algorithm, which requires miners to use expensive hardware and a significant amount of energy to validate transactions.

Until December 2022, we had a PoW blockchain where miners mined transactions and were rewarded for mining. Because we want to be a sustainable blockchain we have started migrating our blockchain where blocks were secured by miners to a blockchain where the blocks are secured by validators (people who stake ERON).

The migration itself does NOT affect you at all at this point. Once our mainnet will be launched, we will ask all holders to deposit their tokens in ERONBit in order to have their ERON swapped to the denominated ERON, that will be launched along with the mainnet.

Once our mainnet is launched, anyone interested can stake their ERONs in liquidity pools or ask to become validators. Please be advised that becoming a validator comes with certain conditions and responsabilities, that we will publish on the staking page of our mainnet.