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Energi 3.0 Unique or just good marketing?

Energi – It is somewhat difficult to trust a company that freezers funds on exchanges, hide their true identities and yet claim to be transparent.

Energi

About Energi

Energi (NRG) is a next-gen Proof of Stake (PoS) cryptocurrency combining a self-funding treasury with smart contract abilities and decentralised governance.

Tommy World Power Founded the company. A curious name but don’t get hung up on it, Tommy is capable of recognising opportunities that others miss.

In 2017 Tommy started working on self-funding and an economically attainable cryptocurrency. It would focus on smart contracts and utilize the Emission Rate (the speed at which new crypto coins are created and released) as its root of growth, and so the Energi project was formulated. He then assembled a team of specialists with backgrounds in cryptocurrencies, finance, development, economics and marketing.

‘NRG’ was a fork of DASH, and the platform launched in April 2018 as a Proof of Work coin and managed to get into the top 100 coins by August 2019.

(Proof of Work (PoW): A computer calculation called mining that creates a group of transactions called blocks that are on a distributed ledger called a blockchain.)

Its marketing strategy was to use massive airdrops (earndrops) to establish the community quickly. Its goal is the global adoption of crypto technology that uses their self-funding treasury system and community-centred governance.

In 2019 the 2.0 upgrade was Proof of Stake instead of Proof of Work.

(Proof of Stake (PoS): Rather than miners POS uses validators to lock crypto as a stake in the ecosystem. The validators then bet on the blocks they assume will be added next to the chain.)

Evolution of Energi

  • 2018 – 1.0: A proof of work coin forked off of Dash.
  • 2019 – 2.0: Upgraded to proof of stake.
  • 2020 – 3.0: Migration onto a smart contract platform adapted from Ethereum.

Energi 3.0

Image for post

The Migration

Energi 3.0 Migration took place on March 10th 2020, adding Ethereum’s smart contract function to the Energi masternode structure, decentralised governance models and self-funded treasury. It allows storage of existing and new ERC20 tokens on Energi.

Are NRG ‘coins’ now ERC20 ‘Tokens’?

Not according to the Energi Team. Although Energi has fully transitioned to an Ethereum-based smart contract platform, NRG is not an ERC20 token but is an equivalent to ETH with ERC20 compatibility to the Energi platform.

This transition unlocks the Ethereum-based dApps (Decentralised Applications) written for Ethereum, including exchanges, games and social media platforms to name but a few. It has allowed Energi access to Ethereum’s capabilities whilst maintaining the Energi Governance Systems, Masternodes and Treasury.

Incubator Program

The launch of Gen 3 initiated the Incubator Program, which is a project designed to support and promote early-stage blockchain projects.

Enigma

shadowy

Trust Issues

During the migration to 3.0 NRG holders discovered their funds locked on every exchange, which has caused much concern and loss of trust in Energi, evidenced by the sudden drop in price immediately the option to sell became available again.

  • July 2019: Price of NRG $8.89
  • Sept 2020: Price of NRG $1.51

Coin or Token?

Confusion exists over the coin or token issue. The easy explanation is that coins have their own blockchain, tokens do not.

ERC-20 tokens

“Solidity”, a programming language invented by Gavin Woods (former Chief Technical Officer for Ethereum) is used to write smart contracts. ERC20 tokens are created by smart contracts specifically to be used exclusively on the Ethereum platform.

Ethereum-based dApps employ ERC20 tokens therefore if NRG is not an ERC20 token but is a coin with its own blockchain how does it have ERC20 compatibility and be able to access the Ethereum dApps that are exclusive to the Ethereum platform?

The Energi Team assert that NRG continues to be a coin rather than a token. However, most documentation regarding this matter is dated pre-migration.

Energi Defence and Bureau of Investigations

BigBrother

There is insufficient information concerning the scope of their powers. Tracking and identifying hackers and scammers is one thing, but what else would such an organisation undertake? Big brother is an area that could easily be subject to abuse by someone with control issues.

Finance

The lack of a supply limit is concerning. Every month, the supply will grow by 1 million NRG tokens, with no hard cap on the horizon. In two years, their circulating supply will double.

The monthly emission is distributed as follows:

  • 40% Treasury
  • 40% Masternode owners
  • 10% Staking Rewards
  • 10% Founder

In the whitepaper a great deal is made of the self-funded treasury; however, projects often control funds through DAO (decentralized autonomous organization) or on-chain governance so that masternode owners can vote on fund allocation; therefore this feature isn’t unique.

Founders Wallet

The founder’s personal wallet (Tommy World Power) will grow by 10% or 100,000 NRG indefinitely. The whitepaper states

At a modest 10% allocation, this was felt to be very reasonable to the early Energi community, who joined Energi from Tommy’s original Youtube fanbase.”

Energi Whitepaper

Maybe when Energi first hit the markets, 10% was a modest allocation, but worst-case scenario if Tommy chose to do so, he could cash in his ERG tokens at any time. Of course, this would kill the project, but then again, he will walk away from the project a wealthy man.

Then again, if Tommy launched around ten masternodes a month, he could build a controlling share of the votes across the network, for that matter how many masternodes are already controlled by Tommy? If he has 51%, then voting is an illusion.

Conclusion

This company has an excellent marketing team; they are full of spin, double-talk and innuendo. The reality is that they do not appear to be offering a unique product other than the ‘Defence and Bureau of Investigations’, which is a questionable outfit in itself.

BNA

Disclaimer: Opinions expressed at Bitcoin News Agency are not investment advice. Investors should do thorough research before investing in Bitcoin, digital assets or cryptocurrencies. Please be advised, transfers and trades are at your own risk, and any loses incurred are your responsibility. Bitcoin News Agency does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Bitcoin News Agency, an investment advisor. Please note that Bitcoin News Agency participates in affiliate marketing.

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