Block Creation Rights

Block Creation Rights

This type of token is the most common type of token in most blockchain platforms that have a proof-of-stake system as token holders can become block validators with their chances roughly equal to the balance of tokens. Participating in this type of consensus process involves running a client protocol. 

Advantages: People understand staking and can make estimates of their return.

Disadvantages: People don’t always stake their tokens and excessive staking could reduce transaction volume on the network. It also requires the launching of a new blockchain.