In March 2021, MinePlex — a new-generation mobile crypto bank — launched a product called the MinePlex Marketplace. This marketplace gives users the ability to buy products they can’t afford straight away through the simple act of Commodity Staking.
Say you want to buy the latest iPhone or MacBook Pro, but it’s too expensive right now. Making a purchase through commodity staking solves that problem. In this article, we take a closer look at commodity staking, and how it solves the problem of making high-end consumer products more affordable.
What is staking?
In the cryptocurrency sector, staking is a way of investing in new blockchain technologies, coins, tokens and currencies. Investors agree to commit a fixed amount for a fixed period, usually when investing in a new coin or token. Crypto and blockchain startups launch these tokens through private and public token sales (e.g. an ICO), often raising millions to fund future growth roadmaps.
However, unlike with crowdfunding, equity or debt-based angel and VC financing for startups, crypto investors almost always get returns for staking a percentage of the required investment. Crypto investors don’t need to wait in the hope for a startup to achieve an exit event or at least start generating a profit before getting something back for the initial and any follow-on investments.
When crypto investors ‘stake’ a cryptocurrency, token, or blockchain-based startup, there are usually a series of rewards available for those contributing to the startup capital. Generally speaking, the more an investor puts in, and the longer a stake is held, the greater level of rewards earned.
Rewards are usually earned through what’s called a ‘staking pool.’ Think of this similar to an interest-earning savings account. As an investor, you gain a percentage of the income invested over time, and as the investment vehicle grows (e.g. a token, coin, or blockchain-based startup), the amount earned back should exceed the original investment.
Cryptocurrencies and other startups that use staking mechanisms put that investment to work. A consensus mechanism, known as the “Proof of Stake” is integral to the way a startup or cryptocurrency functions.
What is commodity staking?
Commodity staking takes the concept of staking, but applies it in an innovative way. Making it possible for people to buy products they want using crypto commodity staking. You agree to commit a fixed sum of money into a staking pool, whereby your reward is the purchase price of the product you want to buy. This is a MinePlex innovation, and something users on MinePlex can start doing right now.
Now let’s take a look at how people can now buy a growing list of products using crypto commodity staking.
How can you buy goods using crypto commodity staking?
Using the same concept as staking in return for rewards, commodity staking for goods is an innovative new way to buy things over a fixed period of time, if the purchase price is too high for a customer. You can only do this through MinePlex, which has created this exciting new staking-based purchasing solution for crypto users, giving shoppers an alternative way to buy the things they really want.
MinePlex, a new generation mobile crypto bank, has opened a marketplace where registered users can buy products — such as smartphones, computers, furniture, etc. — through a simple staking mechanism, similar to investing.
Imagine a phone you want to buy is $1200. But you only have $500 spare. Where can you get that extra $700 from? Borrowing money is going to cost interest, say anything from 12% all the way up to 50%, or more! Making whatever you want to buy even more expensive, with the only advantage that you can get it straight away.
With commodity staking, you don’t need to wait to save out of your income or borrow more. That extra $700 can be earned from commodity staking, a new CrossFi MinePlex is pioneering.
Using the example of that $1200 smartphone, this is how commodity staking works:
- Choose the product you want on the MinePlex Marketplace (you need to be a registered user first): https://mineplex.market/
- Put the $500 goes into staking to earn enough for the remainder, the other $700 needed to buy the phone.
- Once enough interest is generated from staking to cover the total amount, $1200, the product is yours and will be shipped out.
It’s as simple as that! No need to borrow money for the products you want. A growing list of products is being added to the MinePlex Marketplace every day. Giving anyone the ability to stake funds and purchase them with PLEX Tokens, the native crypto-token of
Although it means waiting for the staking period to end, the more you put in, the shorter the wait. Commodity staking will make buying high-end consumer products more achievable for a worldwide community of 200 million crypto users, investors and enthusiasts.
“Commodity staking allows you to purchase a product for a part of its cost. After making the payment, the product can be picked up at the end of its staking period. The lower the contribution from the cost of the product, the longer the staking period and vice versa”, MinePlex said in a press release to Bloomberg.