Fee-split coins reportedly give you the ability to earn passive income, just by holding onto your cryptocurrency. As they are passed back and forth on the exchanges, fees are charged, and holders earn a percentage of the fees, based on the amount of crypto held. You can think of this as similar to, or perhaps identical to the Proof-of-Stake (PoS) algorithm that many cryptocurrencies such as Ethereum will switch to in the near future. Where most crypto is mined today by cryptographic problem-solving using ASICs and fast GPUs, PoS enables you to earn coin based on how much coin you already own, through distributed consensus, where the creator of the next block is chosen based on their stake, consisting of a combination of wealth (how much coin you own), or age (how long you’ve held the coin). While fee-split coins may not necessarily fall under the definition of PoS, the concept appears to be the same, where you earn coin essentially by holding onto what you already have. We found a number of fee-split coins that you can have a look at, below. Keep in mind that this is not financial advice. We are only reporting on what we found, and you should consult with a professional financial advisor if you are thinking of getting into fee-split coins.
COSS has a coin market cap of just under $63 million. It peaked at nearly $3 per coin earlier this month, and is currently just over $1 per coin. COSS is advertised as a utility token that has a number of use cases for merchants, including its use in point-of-sale transactions, payment gateways and instant conversion between different cryptocurrencies. It offers a generous 50% fee split allocation, meaning that as trading volume goes up, the amount you earn for holding your coins could be very healthy.
Kucoin Shares (KCS)
Kucoin Shares is a fee-split coin where you can earn a small amount of coin for each share owned. The website has a calculator on the homepage to help you calculate earnings. For example, if you own 10 shares of KCS at a total cost of $77.60, you would earn $0.0128 as a bonus each day. The bonus won’t make you rich but it’s certainly worth exploring. With a coin market cap of $708 million, this is a “small” coin to consider.
Cryptopia Fee Share (CEFS)
This is a new coin available on a New Zealand exchange that distributes fee splits once a month. With a daily volume of 40-300 million dollars, people were reportedly earning $160 per coin owned. It currently trades at $5,250 per coin with a relatively low 24-hour volume of $364k. You can purchase CEFS here. Be sure to explore the Cryptopia FAQ in order to understand how it works.
Ark is touted as an all-in-one blockchain solution, where they seek to create an entire ecosystem that’s adaptable and scalable. It’s a Delegated Proof-of-Stake (DPoS) coin, where51 delegates are tasked with running the network and are rewarded with blocks. You would register to get a share of the pool of transaction fees using your ARK wallet.
Stellar Lumens (XLM)
Stellar Lumens (XLM) has been an allstar making the rounds lately. Its price jumped 20% after Stripe announced possible support for it, and the recent $39 million Mobius Network ICO chose its system of smart contracts over Ethereum. The base fee is 100 stroops, with a reserve of 0.5 XLM, with actual fees calculated accordingly. This goes into a fee pool of lumens, which are distributed in a weekly process of inflation voting.
NEO is currently $135 per coin with a market cap of $8.8 billion. It’s advertised as an open network for Smart Economy, where it utilizes blockchain technology to digitize assets. It pays out in GAS and you can calculate your rewards using an online GAS calculator.
Fee-split coins are growing in popularity and we’ll see more of them come out. VeChain (rebranding from VEN to VeChain Thor, or VET) will implement a similar system to that of NEO, whereby holding VET tokens in your wallet will entitle you to payouts in THOR. As PoS becomes more of a standard, we might expect a greater amount of attention paid to the rewards earned for holding various coins.