Updated: May 5, 2022
What is Pulsechain?
Pulsechain is a soon to be released blockchain network based on Ethereum with a dash of Binance Smart Chain code. It is copying over the entire system with everything currently on Ethereum, user tokens and all(Worlds largest airdrop), and starting with a full and built ecosystem already ready go.
It requires gas fees to be paid in order to do any transaction on the network, which is paid in PLS(Pulse Token). +25% of every gas fee paid in PLS will permanently be burned from supply. Unlike Ethereum, Pulsechain Runs its consensus by form of Delegated Proof of Stake.
This means that in order for a transaction to be validated and included permanently in a block, PLS holders can “Vote” on the Validators which have shown to perform the best in the past and give the most rewards to those who vote for them.
A total of 33 validators will be in constant rotation to uphold the network, though there will be more that will be trying to get into rotation. It is more eco friendly and has the ability to process much more transactions per second than Ethereum.
So what is Pulse X then?
What is Pulse X?
PulseX is the premier Decentralized Exchange(DEX) being built for Pulsechain specifically. It will have the cheapest fees to transact on the entire chain at 0.29% as well as be the most liquid of any exchange. Of this .29%, around 76% of fees go to Liquidity Providers, 3% goes to an address you should have no expectations of, and 21% goes to actually Buy and then Burn PLSX token.
It will be the most liquid due to a bot made specifically to harvest tokens from other DEX’s that are getting copied over(Uniswap, Sushiswap, etc) by buying up the tokens and bringing them to the Pulse X exchange where they will live. This means you can trade for the most possible tokens on the PulseX DEX.
PulseX will allow users to Provide Liquidity to earn LP(Liquidity Provider) tokens which are worth their original investment and interest to be claimed at a later date.
Users also have the option to take those LP tokens and Stake those in LP Farms to earn INC(an incentive token) on top of what they would earn from being an LP.
There will also be a single sided staking pool for holders of PLSX. Holders will be able to vote on pools and which reward token will be given for a given pool in a DAO(decentralized autonomous organization) where decisions for PulseX will be made.
What is PLS Token?
Like ETH (Ether) is to Ethereum, PLS (Pulse) is the native token used to pay for transactions on the network. Due to the previously mentioned +25% burning of gas fees, the overall supply of PLS is Deflationary; Meaning the supply will only ever be reducing after the launch of Pulsechain.
No new Tokens will ever be minted once Pulsechain Mainnet goes live.
It can be used to Vote on Validators that run the network based on how well they have performed previously and earn more PLS every time that validator completes a block.
Total Token supply will be around the 133 Trillion mark at launch.
What is PLSX
PLSX is the native token to the PulseX Exchange. It allows users to vote on which reward tokens will be placed in the single sided staking pools for PLSX tokens as well as proposals for changes within PulseX. It is a deflationary token, due to 21% of each transaction fee on the PulseX DEX buying and then permanently burning PLSX from supply. This means the total supply of >100 Trillion will always be reducing.* correction from a previous Blog.
So whats the difference?
While both PLSX & PLS are deflationary, the way in which they deflate can effect price in a different way over time PLS is burned every time a network transaction happens, over the long term the total supply will slowly shrink, leading to less and less making it into liquidity pools and possibly helping price over the long term.
PLSX is burned every time a transaction on PulseX happens, however instead of just removing the supply, PLSX is BOUGHT first and then burned by an internal function that anyone can initiate.
This is most likely to help PLSX in the short term much more so than PLS burn in regards to price.
Both PLS & PLSX can be used to earn passive rewards without placing the tokens in liquidity pools and having the risk of impermanent loss which is outside the scope of this video. PLS can be Delegated(staked) to validators on the network and earn a revenue share from each block mined by the validator paid in PLS.
PLSX can be placed in a single sided staking pool in order to earn 1 of (most likely) a few different choices in token as a reward. PLSX holders can even vote on which Tokens they wish to have in the pools, however we do not know which tokens will be able to be voted on.
Long term benefits comparison
While both Tokens have Utility in regards to earning passive rewards, only one token will always be required in order to transact on the network. PLS is the native token that will always be required in order to transact on the network, meaning that even if someone doesn’t like the token(in regards to holding for price performance) they still have to hold some in order to use the network.
As more users migrate to Pulsechain, for this reason as well as its deflationary mechanism, we are likely to see a continual rise over the long term..
PLSX is not to be forgotten about here though. Its power to allow you to choose the type of rewards you earn holds a lot of weight. We could see tokens like Hex even included in the reward token, as a possibility.
The PLSX staking function on Testnet does seem like the rewards heavily outweighs what PLS receives from validators, however it should be noted that this is all likely to change drastically once Pulsechain Mainnet goes live.
Outside of the PLSX staking and voting, there is no requirement to have it in order to participate on the network, unlike PLS which is.
Short term benefits
In the short term, PLS will not have any significant advantage in benefits over PLSX in the short term. Its price movement for both will be volatile, and could likely be to the upside for both as well.
Where PLSX has the advantage in the short term is due to the Buy and Burn, due to the most PLSX that is able to be bought and burned per $ is in its initial days or weeks of price discovery. This is likely to assist the price in wanting to move higher initially, but for more on this go watch my video titled PulseX Buy and Burn.
PLS will still be in high demand, as new users will likely be wanting to use the network every day. This is also likely to cause upward pressure on the price of PLS initially on its own without the need for a buy and burn function.
All in all
Both tokens will have their use cases and utility on the network, both are deflationary, and both will be highly sought after upon launch. If you hold only one of the tokens, I think you will be very happy with the performance in the coming years.
Which one are you most interested in?