Take a second look – PIVX
In this series I will be looking at coins with a future that are not in the top 20 sometimes not even in the top 40. These coins will be long term HODL (Hold On Don’t Letgo) opportunities.
Pivx is a Dash fork with some differences. It does have masternodes like Dash, 10,000 Pivx* will get you a masternode. They also have instant send like dash. What is different is they are trying to get zerocoin protocal on a POS coin which would be awesome. They do have a mobile wallet on Android and are working on the stringent process of getting it on iOS, the glimmer of hope is that Dash has put out a mobile wallet on iOS so that is a good sign I think.
The price difference is a huge between Dash and Pivx(about 10% of dash’s price). Much cheaper to run a masternode for Pivx than dash but the rewards are less for now.
PIVX uses a seesaw balancing reward system to prevent centralization of masternodes. It does this by adjusting the reward split between masternodes and staking nodes.
As the proportion of masternodes increase, the reward for masternodes decrease while stake mining reward increases. Conversely, if the proportion of masternode count decreases, reward for masternode increase and staking mining reward decrease.
This periodic adjustment of the reward distribution between masternodes and staking nodes incentivizes masternodes when their count is low and incentivizes staking nodes when masternode count is high. It is a balancing mechanism built into the code to preventive centralization of masternodes.
Additionally, PIVX’s community designed governance initiative could potentially be a game changer if they can pull it off. Bitcoin’s scaling debate that has been drawn out for nearly 2 years has shown us the problems having and unstructured governance and sudo centralization of power. As a result there has been more of afocus on governance models. The rise in popularity of governance coins such as Decred (DCR) has shown that is what people want.
Though PIVX’s community governance project is still in its planning/discussion phase; the fact that it is taking initiative to redesign it’s governance to be structured, decentralized and distributed is very exciting. I am hopeful that it will be completed soon if not the very least a release date to be announced soon.
Active develpoment Pivx hype tweet. Not sure if that is just hype or the zerocoin protocol is coming out. Needless to say they are active developers.
On a comparative basis, PIVX is one of the cheapest masternode coin with a focus on privacy. It has differentiating features including proof of stake algorithm, masternodes, zero-proof knowledge, and instant send that could garner a lot of attention if it starts to take off. Additionally, it’s see-saw reward balancing mechanism and initiative to redesign community governance addresses the problem of centralized power apparent in many crypto currencies including DASH. And finally its proven that it’s a real project with long-term goals.
PIVX is a young project with a smaller marketcap that is still subject to the volitility of a newer crypto. It wouldn’t surprise me if PIVX were to lose more than half of it’s value in a week, especially if there is a Bitcoin fallout because most alt coins are tied to BTC’s performance. However, I am looking for a 100 to 800% return on this investment, solid team, solid project if they keep up with the roadmap we are in for a ride.
Catalyst to look for:
PIVX added to Poloniex and other exchanges
Announcement of key milestones such as: Zerocoin protocol (crosses fingers) and redesigned community governance to name a few.
Disclosure: I hold and am long on PIVX. I not financial advisor and this article merely expresses my own opinions.