PulseChain is a blockchain platform designed as a hard fork of Ethereum. It aims to address several key limitations of the Ethereum network, particularly around scalability, transaction fees, and energy efficiency. By forking Ethereum, PulseChain created an alternative network that not only mirrors Ethereum’s existing state but also proposes improvements in several critical areas. The primary motivation behind the creation of PulseChain was to provide a solution to the high gas fees and slow transaction times that have plagued the Ethereum network, especially during times of high demand. These issues have not only inconvenienced users but have also stifled innovation by making it cost-prohibitive to run complex or transaction-heavy applications on Ethereum.

PulseChain was initiated through a process known as a “hard fork.” This means that it branched out from Ethereum by duplicating the existing Ethereum blockchain up to a certain point and then diverging with its own unique rules and enhancements. One of the notable features of this fork was that it replicated Ethereum’s entire system state. This replication means that users who had assets on Ethereum at the time of the fork now also have equivalent assets on PulseChain, facilitating a smooth transition for those looking to explore the new network without losing their existing investments.

Key Features of PulseChain

Lower Transaction Fees and Higher Speed

PulseChain addresses one of the main pain points of the Ethereum network: high transaction fees and slower transaction speeds. By implementing a block time of only three seconds, compared to Ethereum’s 15 seconds, PulseChain significantly enhances transaction throughput and scalability. This increase in speed facilitates more efficient processing of transactions and smart contracts, which is critical for decentralized applications that require rapid state changes​.

Environmental Sustainability

PulseChain adopts a proof-of-staked (PoS) consensus mechanism, which is far more energy-efficient compared to Ethereum’s original proof-of-work (PoW) model. This shift not only reduces the network’s carbon footprint but also aligns with the growing global emphasis on sustainability in technology. By minimizing energy consumption, PulseChain offers a greener alternative for blockchain operations, which is increasingly important as digital currencies and blockchain technology move towards mainstream adoption​​.

Economic Model and Fee Structure

Both PulseChain and PulseX utilized a unique financing method known as the “Sacrifice” phase. In this approach, investors voluntarily “sacrificed” their existing cryptocurrencies in exchange for free, initially valueless tokens of PulseChain and PulseX. This method was not just about acquiring new tokens but also about demonstrating a commitment to the new ecosystem. The Sacrifice phase is an innovative approach in the crypto space, aiming to distribute tokens based on ideological commitment rather than monetary investment alone. For further details on this topic, you might find this article helpful.

Micro-Fee Structure: PulseChain introduces an economic model where the transaction fees are extremely low, described in units called “beats.” One beat equals 0.000000001 PLS, ensuring that the costs remain accessible to all users. This micro-fee structure is crucial for promoting broader adoption and usage of the PulseChain network.

Deflationary Mechanism: A part of the transaction fees collected on the PulseChain is burned, effectively reducing the total supply of PLS over time. This deflationary mechanism is designed to potentially increase the value of the remaining PLS tokens, adding a layer of economic incentive for token holders.

Assets

HEX

HEX is often referred to as the first blockchain certificate of deposit, which rewards users for staking their tokens over a period of time, similar to a traditional bank CD. It was created by Richard Heart before PulseChain, but it is integrally linked due to its adoption and migration to PulseChain. HEX users can stake their tokens to earn interest, thereby reducing the circulating supply and potentially increasing the value due to its scarcity. As a predecessor and major component of the PulseChain ecosystem, HEX brings an established user base and financial ecosystem to PulseChain, which enhances the platform’s credibility and utility.

PLS

PLS is the native utility token of the PulseChain network, crucial for a variety of network activities. It is used for transaction fees, staking to secure the network, participating in governance, and as a basic unit of exchange within the ecosystem. The PLS token is fundamental to maintaining the network’s economy, securing its protocol, and empowering users through governance participation.

PLSX

PLSX is closely associated with PulseX, the decentralized exchange on PulseChain. It is primarily used within the PulseX ecosystem for liquidity provision and potentially for earning trading fees, similar to other DEX governance tokens. PLSX encourages liquidity and active trading on PulseX, driving user engagement and fostering a healthier DeFi ecosystem on PulseChain.

INC

INC is less commonly discussed and does not have as much public documentation as the other tokens. If INC refers to a specific project or token initiative within PulseChain, further details would be needed from more specific or direct announcements within the community or development team. Without specific details, the role and impact of INC remain speculative. However, new tokens within such ecosystems typically aim to address niche functionalities or support particular applications like governance, utility, or rewards.

Token Mechanics

The PLS token is the foundational currency of the PulseChain network, employing the PRC-20 token standard, a variant of Ethereum’s ERC-20 standard. This standard is crucial as it ensures compatibility with a wide range of wallets and exchanges while facilitating the necessary functions to operate within the PulseChain network. The token is integral for paying transaction fees, which helps maintain network operations and security.

The PLS token serves multiple roles within the PulseChain ecosystem:

Transaction Fees: PLS is used to pay for transaction fees on the network, which are crucial for the execution of smart contracts and general network transactions.

Staking and Security: Holders can stake their PLS tokens to support network security. Staking involves delegating tokens to validators who verify transactions and maintain the blockchain. This staking mechanism not only secures the network but also rewards participants with a share of transaction fees​.

Governance: As the network matures, PLS holders will have the opportunity to participate in governance decisions, using their tokens to vote on key protocol changes and developments. This promotes a decentralized model of governance where all stakeholders can have a say in the network’s future direction​​.

PulseChain introduces an innovative economic model where a portion of each transaction fee is burned, reducing the overall supply of PLS tokens over time. This deflationary mechanism is designed to potentially increase the value of PLS as the supply diminishes. Validators receive a significant portion of the transaction fees as a reward for their role in maintaining network operations, with the remaining fees either redistributed or burned​​.

The launch of PulseChain was accompanied by what has been termed the “largest airdrop in history,” where existing holders of Ethereum and ERC-20 tokens received an equivalent amount of PLS tokens. This strategy was designed to bootstrap the network with a broad user base and immediately provide value to a large community of existing cryptocurrency users. The distribution followed a unique “sacrifice” phase where users could contribute other cryptocurrencies in exchange for PLS, which helped fund the initial development and provided a fair distribution mechanism to support early adopters and investors​​.