PulseChain: An Ethereum Fork Chain with Innovation and Controversy

Introduction

PulseChain is a full state hard fork chain of Ethereum, retaining a complete record of all transactions, user accounts, and smart contract interactions on the Ethereum blockchain. The platform aims to alleviate the pressure on the Ethereum network and provide developers with a more cost-effective option.

PulseChain increases the value of the Ethereum network by offloading network traffic and reducing gas fees. Its block time is 12 seconds, faster than Ethereum's 15 seconds, theoretically offering greater scalability.

The project adopts the Proof of Staked Authority (PoSA) consensus model, introducing native validator staking, rotation, and reward reduction contracts. Currently, the PulseChain network has 15,893 validator nodes. Users can become validators by staking 32,000,000 PLS tokens and earn profits from network transaction fees.

PulseChain officially launched its version on May 14 this year, having previously completed testing for versions V3 and V4.

Team Background

The founder of PulseChain is Richard Heart, who is also the founder of the HEX project. Richard Heart is an American cryptocurrency entrepreneur and became one of the key investors in the Ethereum crowdfunding as early as 2015.

Richard Heart has a large following on social media, but he is also a controversial figure. The HEX project he founded set a record for token issuance fundraising, with a maximum increase of ten thousand times within three years, attracting widespread attention.

Richard Heart is skilled in marketing and once purchased a special black diamond, naming it "The HEX.COM Diamond." He also sponsored racing events to increase project exposure.

HEX Project Introduction

HEX is a project that claims to be the world's first high-yield blockchain certificate, launched on December 2, 2019. The project has designed a complex token distribution and staking mechanism, including airdrops for Bitcoin holders and obtaining HEX through ETH donations.

Holders of HEX can stake tokens for 1-5555 days, and upon maturity, they will receive the principal and interest. The project has set up an inflation mechanism and an early unlock penalty mechanism to encourage long-term holding. In addition, HEX also includes a promotion reward mechanism, where additional rewards can be earned through referrals.

PulseChain airdrop mechanism

PulseChain will conduct a 1:1 airdrop of PLS tokens to non-custodial wallet users holding Ethereum tokens. However, due to the extremely low initial value of PLS, this airdrop is actually more of a promotional strategy.

Project fundraising mechanism

Projects on the PulseChain network are mainly launched through the "Sacrifice activity" (essentially a donation mechanism). Users can donate freely, and the token distribution is determined by the donation amount. The PLS and PLSX projects raised approximately $13.7 billion and $55 billion, respectively, most of which came from wallets believed to be controlled by Richard Heart.

Token Economics

PLS is the native token of PulseChain, used to pay for network gas fees. The total supply is 135 trillion, with over 90% held by OA addresses. Validators can earn 75% of transaction fees, while the remaining 25% is burned.

PLSX is the platform token of the PulseX exchange, offering benefits such as fee discounts. 21% of the platform fees are used to buy back and destroy PLSX tokens.

INC token is a reward token for staking mining, obtained by pledging LP.

ecosystem

1. PulseX: Official decentralized trading platform, forked from Uniswap.

2. Liquid Loans: The largest third-party project on PulseChain, developing over-collateralized stablecoins.

3. Powercity: Composed of supporters of Richard Heart, covering multiple sub-projects.

4. Ph series projects: including Phiat (lending platform), Phamous (perpetual contract exchange), Phux (multi-currency liquidity pool exchange), and Phatty (wallet aggregator).

Summary

The PulseChain ecosystem is currently mainly led by Richard Heart and the HEX community, with most projects being forked versions of well-known projects on Ethereum. Despite lacking traditional venture capital support, the community has strong fundraising capabilities.

After the mainnet went live, PulseChain quickly climbed the DeFi TVL rankings, but most of the TVL is concentrated on the PulseX platform. Currently, OKX has launched the PLS/USDT trading pair, providing more convenience for investors.

The PulseChain project is controversial; some view it as innovative while others see it as risky. Investors should conduct thorough research and make cautious decisions.