I would like to know if it’s possible to build a custom token that is also proof of stake, same as ALGO.
We currently have an ERC-20 staking token implemented, but we are going to be migrating to a different chain in the future.
Yes, you can build a token putting the trade information in the Note field. You can read AssetBlock article about the security token they are building here:
The idea is simple, you put all the transfer information (and any other thing you want) in the Note Field, which is a part of the transaction. There, you implement all the token logic. You will need to use your own servers to interpret the Note messages and get the balance of each address. The same logic can be implemented as a standard, so algoexplorer.io can interpret all the token transactions and give you the needed information such as Etherscan.io for Ethereum.
Algorand Auctions were implemented using a Message Pack inside the Node Field. You can see an example here:
https://algoexplorer.io/tx/HEDI522DR4L473W4NXPTTV55HBADGIFVH7C7XC3Z2D3TJZAKUQ7A
Any transaction from or to address VCINCVUX2DBKQ6WP63NOGPEAQAYGHGSGQX7TSH4M5LI5NBPVAGIHJPMIPM it an auction message (off course some spam messages could exist though I didn’t see any).
Best,
Pablo
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Yes I know that I can build a token. I was asking if the token can be a Proof of Stake type.
Everything you implement on top of Algorand is PoS since the consensus is at consensus level. If the transaction is added to the blockchain it means that the PoS protocol found the transaction valid. Then, you token implementation will interpret the transactions that were added to the blockchain through the (Pure) PoS protocol.
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Okay thanks for the explanation. But where do I determine the inflation rate and how much coins get added with each new block?
Your code will run off-chain and the protocol will be written by you so you can add a function to mint tokens like in a smart contract. The code interpreting the token code will run the same code and should implement an API to retrieve current status. Any other party can run the same code and interpret the same results (because the data is on-chain).
There will be some functions that should be called only by the creator address (like the smart contract admin) like the mint function or maybe the changeAdmin function.
Basically, it’s the same as creating a smart contract by you do it just with some opcodes and you can use any programming language. The difference it that running a node is not enough to interpret your code, but in the future if the projects create standards the explorer will interpret the protocol in the same way your code does so end-users won’t be able to note the difference.
This project is really interesting to my side.
You mean our project?