✨Smart Staking

The ENIZ token represents a sophisticated fusion of blockchain technology and financial strategy, materializing a smart staking system that enables investors to earn passively by merely holding the tokens in their account. This detailed explanation will delve into the mechanics of how the ENIZ token operates within the Stellar blockchain, interacts with the enizchain beta chain, and leverages the Ignite CLI to facilitate an inter-blockchain staking mechanism through the IBC protocol.

Understanding Smart Staking

Smart staking is a novel concept in the blockchain space, offering a more flexible and potentially more lucrative alternative to traditional staking methods. It combines the principles of passive income with the innovative technologies of blockchain, enabling tokens to be staked automatically. This mechanism is particularly advantageous for long-term holders who wish to benefit from their investments without the need to actively trade or manage their holdings.

The ENIZ Token Ecosystem

The ENIZ token operates across multiple blockchain platforms, primarily between the Stellar blockchain where it is initially transacted and the Cosmos SDK via the enizchain, a beta chain that bridges the two ecosystems.

Purchasing and Staking ENIZ Tokens

Investors purchase ENIZ tokens on the Stellar blockchain, which is renowned for its speed and low transaction costs. Upon acquisition, the investor sends a notification to the enizchain. This notification is interpreted by the Ignite CLI system as a Token Factory process, which initiates the creation of inter-blockchain accounts within the Cosmos SDK ecosystem through the IBC protocol.

Conversion and Allocation of Funds

When ENIZ tokens are purchased, the equivalent native Lumen XLM tokens received during the exchange are directed towards a staking pool within the Cosmos blockchain. This process is automatic and seamless, providing a user-friendly experience for investors. If the purchase of ENIZ tokens occurs through third-party transactions or during web auction airdrops rather than through an Initial DEX Offering (IDO) sale, additional ATOM tokens are formed from the capital investments of Retisubio, which receives up to a 12% share of the invested funds in ATOM tokens. This mechanism allows for the automatic reinvestment of these funds directly back into staking.

Daily Capitalization and Redistribution

The funds accrued in the multi-blockchain accounts from the ATOM staking pool within the Cosmos blockchain are capitalized at the end of each day into a single collective pool. From this pool, a portion of the funds—specifically, an 8.24% Annual Percentage Rate (APR) on the client's yearly investments—is returned to the Stellar blockchain in the native XLM token and credited back to the holder's account through the IBC protocol. The remaining generated funds from staking are allocated to the accounts of RetisubioLab.

Use of Generated Funds

The funds that are allocated to RetisubioLab are strategically used to support the ongoing development and expansion of the ENIZ project. They may be directed towards marketing initiatives, reinvestments, or maintaining the liquidity pool of the ENIZ token. This strategy ensures that the ENIZ ecosystem remains vibrant and continues to grow, providing value to token holders and supporting the overall health of the network.

The Role of Retisubio in the Ecosystem

Retisubio plays a critical role in the smart staking ecosystem of ENIZ. By providing additional ATOM tokens for staking when ENIZ tokens are acquired through third parties or web auction airdrops, Retisubio ensures that the staking pool remains robust and capable of generating substantial returns for token holders. This contribution not only incentivizes participation in the ENIZ ecosystem but also stabilizes the staking process, making it more attractive to potential investors.

Advantages of Smart Staking with ENIZ

The smart staking system of ENIZ offers several advantages over traditional staking methods:

1. Passive Income: Investors can earn from their holdings without actively managing their investments.

2. Automatic Reinvestment: Returns from staking are automatically reinvested, compounding the investor's earnings.

3. Inter-Blockchain Flexibility: The system takes advantage of the unique features of both the Stellar and Cosmos SDK blockchains, offering a blend of speed, scalability, and flexibility.

4. Ecosystem Growth: Reinvestments from staking returns contribute to the liquidity and stability of the ENIZ token, fostering a healthy ecosystem.

5. Community Benefits: A portion of the staking returns is allocated for the development and promotion of the ENIZ project, ensuring its longevity and success.

Conclusion

The ENIZ token’s smart staking system is an innovative solution in the blockchain investment landscape, offering a seamless, efficient, and profitable way for investors to engage with the digital asset market. Through the strategic use of blockchain technology, automated processes, and the Ignite CLI framework, ENIZ token holders can enjoy the benefits of passive income while contributing to the growth and vitality of a burgeoning blockchain ecosystem. The integration of this system with the Stellar and Cosmos SDK platforms, facilitated by the enizchain and the IBC protocol, showcases the potential for advanced financial systems within the cryptocurrency domain, driving forward the concept of smart staking as a cornerstone for future investment strategies.

Here's a detailed explanation of how ENIZ's smart staking system interacts with the IBC protocol:

1. Module A (ENIZ Smart Staking on Stellar): Smart staking begins with the ENIZ token holders on the Stellar blockchain (Chain A). Here, Module A is configured to recognize and manage the smart staking operations of ENIZ tokens. When a user decides to stake their ENIZ tokens, Module A prepares the necessary data packet for the IBC Module, signifying the initiation of the staking process.

2. IBC Module (Stellar): This module takes the ENIZ smart staking instruction from Module A and packages it into an IBC packet, ensuring that all the necessary staking data is correctly formatted for the Cosmos blockchain (via enizchain). It's responsible for the smooth transition of staking instructions across blockchains.

3. Stellar Blockchain Consensus: The smart staking transaction is authenticated through the Stellar consensus process, validating the user’s intention to stake ENIZ tokens and forwarding the confirmed transaction as an IBC packet.

4. IBC Packet Departs Stellar: With consensus achieved, the ENIZ staking IBC packet exits the Stellar network and is taken up by the Relayer.

5. Relayer: The Relayer is crucial in the smart staking process, acting as the bridge between the Stellar and Cosmos blockchains. It picks up the confirmed staking transaction and relays it to enizchain.

6. Cosmos Blockchain Consensus (via enizchain): Upon arrival at enizchain, the IBC packet undergoes the consensus process specific to the Cosmos SDK. This validates the incoming staking instructions from the Stellar blockchain.

7. IBC Module (enizchain): The IBC Module on enizchain receives the ENIZ staking packet and processes it, interpreting the data within the context of the Cosmos SDK environment and the smart staking parameters set by ENIZ.

8. Module B (ENIZ Smart Staking on enizchain): The processed smart staking data then reaches Module B on enizchain. This module is where the actual staking of ENIZ tokens takes place, according to the smart staking rules predefined by ENIZ. Module B adjusts the staking balances and prepares to distribute staking rewards.

9. Smart Staking Transaction Completion: With the execution of the smart staking transaction on enizchain, the ENIZ token holders are now actively staking their tokens within the Cosmos ecosystem. The smart staking system capitalizes on the cross-chain functionality provided by the IBC protocol to automate the staking process, allowing for daily capitalization and redistribution of rewards.

The smart staking process for ENIZ tokens is thus a multi-chain operation that automates the staking of tokens and distribution of rewards, leveraging the IBC protocol for communication between the Stellar and Cosmos SDK blockchains. This ensures a smooth and automated flow of transactions, maintaining the integrity and efficiency of the ENIZ token's staking operations across blockchain borders. Token holders benefit from a hands-off approach while still participating in the growth and security of the network and earning passive returns on their investments.