How to Delegate Your $ENCS Tokens to an Encoins Relayer
Episode by Peter Bui on December 8th, 2023
In the evolving landscape of blockchain technology, privacy remains a paramount concern for users and developers alike. Enter Encoins , a pioneering privacy protocol on the Cardano platform, reshaping the way we think about secure and private transactions. This groundbreaking innovation offers a solution for users to transact and transfer tokens with unprecedented privacy, ensuring transactions remain invisible on the blockchain.
Encoins: A Beacon of Privacy in the Digital Age
Encoins heralds a new era in blockchain privacy, empowering users with the ability to conduct transactions without exposing their details on the public ledger. This functionality is not just a technological marvel; it’s a fundamental shift in how privacy is perceived and implemented within the Cardano ecosystem.
The Mechanics of Delegating ENCS Tokens
The heart of Encoins lies in its delegation system. Users can delegate their ENCS tokens to various relays in the ecosystem. When these relays process privacy transactions, delegates earn a portion of the protocol fees, incentivizing participation and bolstering the network’s robustness. This mechanism mirrors Cardano’s staking process, offering a non-custodial approach that retains token control with the user.
If you’d like to delegate to our Encoins Relay, please use this address:
ENCS and Governance: A Dual Role
Beyond transactional privacy, ENCS tokens play a crucial role in the governance of the Encoins ecosystem. Holders can influence decisions and guide the protocol’s future, ensuring a democratic and user-centric approach to development.
ZKFold: Another Step Towards Privacy
Complementing Encoins is ZKFold, a zero-knowledge privacy protocol that further cements Cardano’s position as a leader in blockchain privacy solutions. Together, these platforms showcase the versatility and commitment of the Cardano community to uphold privacy and security standards.
Conclusion: A Future Shaped by Privacy
Encoins stands as a testament to the ingenuity and forward-thinking nature of the Cardano community. By prioritizing privacy and user autonomy, it paves the way for a future where secure, private transactions are the norm, not the exception. For those keen on delving deeper into the world of blockchain privacy, Encoins offers an exciting and rewarding journey. Visit Encoins.io for more information and become part of this groundbreaking venture.
Encoins has finally launched. So this is a privacy protocol building on Cardano and the team have launched the protocol. They launched it on the 30th November. So it’s a little bit of old news at the moment, but I’ve been working in the background trying to get my Encoins relay working properly. It’s quite a big instance that you need to take out to be able to operate one of these things. And I got caught out twice with running out of hard drive space and
The hard drive itself on the server wasn’t optimal enough, I really didn’t like its performance so I just took my time, took a step back and just got the thing working properly. But Encoins has launched and congratulations to the team for finally launching this platform where users will be able to transact and transfer tokens from one person to another and not have it visible on chain. So you can’t see like that direct swap from one wallet to another.
what it does, it allows you to swap it offline. And I really like the ability to do this. I could pass it on to someone to pay for something and they would then be able to redeem that NFT voucher because they know how much ADA assets are in there and they also have access to the offline wallet to be able to do so. And I will have tutorials about this and I’ll go through the protocol and how it all works step by step.
and those videos be out really soon, just a little bit more editing before I publish those ones. But what I will take you through right now is the delegation for the relays itself. So this is the easiest part. So if you want to participate in this ecosystem and earn some of the rewards that the relays be earning, you can delegate your ENCS tokens, your Encoins tokens to these relays. When they process these privacy transactions, if you’re
delegated to that particular relay that is processing that transaction you earn some of those protocol fees. Really cool mechanism and it really incentivizes the relayers to be a part of the ecosystem, promote it and everything else around it. So absolutely love it, but they’ve been selling out. They’re really full and you can see here the amount of tokens that each relay needs is 100,000 ENCS. So once you’ve hit that 100,000 ENCS
You need to delegate your tokens elsewhere So there’s quite a few of these pools opening at the moment and you can delegate to any of them that are under the 100,000 mark So let me take you through the process of how this all works You can get to the website at dao.Encoins.io Connect your wallet whether it’s any of these ones here. You can see there’s a lot of support here I’m going to connect my NAMI wallet. I’ve already authorized this website before
Now I’ll be able to click on the delegate button in the top right hand corner here and then choose the particular relayer that I want to delegate to. Now if the relay that you want to delegate to doesn’t appear on this list, you can enter in their relay URL directly into the interface. So if you can’t see my relay here, if you can’t see it, then you know you can grab the address from the description down below in this YouTube video.
and there you’ll be able to delegate to it. But this is my relay here, Encoins.cadarnode.com.au. You can click on Delegate and then delegate your Encoins to this particular pool. So here you’ll see a transaction come up. You just need to assign this and pay for the transaction fee. It’s fairly small, very similar to what you’d be paying if you’re delegating to a Cardano state pool as well. And then once that’s done,
you’re delegated and your ENCS tokens are counted towards that pool. Now what the Encoins relayer needs to do is they need to distribute the rewards to your wallet when they get the tokens distributed to them. So over in time, as my relayer process, the transactions in my wallet, I’ll earn those ENCS tokens and they’ll be distributed to me from the protocol. Then I need to do the distribution off to your particular tokens, et cetera.
and then I need to do the distribution to your wallets that are delegated to my relay. Now I’ve got some scripts that can do this, so hopefully when the relay starts processing transactions, I’ll be able to distribute it to you every epoch and hopefully that’s easy and not a very tedious process, a very easy straightforward process for me. Now back to the delegation here, as you can see the my relay is pretty much at capacity at the moment, I may need to open up another one.
there are other relays here that you can delegate to so a lot of people are snapping up the ENCS tokens and delegating away which is really really cool to see. Now the ENCS tokens don’t leave your wallet so it’s full non-custodial which is brilliant it just works the same way as how Cardano staking works as well so those tokens never leave your wallet. The other thing that you can do over time is also play around with governance in their platform
This is their DAO website, so their staking is also incorporated on their DAO, which is really good because then you can actually see what the protocol, what the teams are trying to do. So here we can see this particular one where we’re looking at a collective zap in for the treasury and then also various other proposals here around the token and what to do with as well. So if you’re delegating and you’re part of the ecosystem, you probably would want to participate in these polls as well.
so that you can try and steer the direction of where the token goes, where the protocol goes as well. So again, big congratulations to the Encoins team for launching and getting this far. I know there’s going to be a lot more improvements and upgrades in the future. Absolutely love what the team are doing. If you haven’t checked out ZKFold as well, this is their other zero knowledge privacy protocol that they’re building as well. They launched it at the Cardano Summit with the
minimal product that they have there as well with the API and the documentation of how to use that protocol. Really really cool stuff. Check out the links in the top right hand corner there. You’ll be able to see the interview that I did with Vlad all around it and how it all works. Really really smart team, really cool stuff. If you enjoyed this content, please give me a thumbs up, click subscribe, click the notification bell and I’ll see you in the next video.