Glossary

Coins – A coin is the native cryptocurrency of its own blockchain. It primarily serves as a means of payment, a store of value, and a unit of account, similar to bitcoin on the Bitcoin network or ether on Ethereum. New coins are generally created through mining (Proof of Work) or through issuance linked to their own network’s staking mechanism (Proof of Stake).

Tokens – A token is a digital asset created and managed by a smart contract on a third-party blockchain (often Ethereum). It does not have its own blockchain but borrows the existing infrastructure to represent a wide range of utilities: governance rights, access to a service, security tokens, stablecoins, NFTs, etc.

Testnet – A parallel blockchain often used as a sandbox for developers and to test blockchain performance. If you participate in a project before the token launch, i.e., pre-TGE, you will receive valueless tokens for your work. The good news is that theses tokens will be converted at the time of the TGE. Theses tokens are often preceded by the lowercase letter t for testnet tokens. For example, the Starpower project’s tokens in testnet are called tSTAR and will be converted to $STAR at the time of the TGE.

Faucet – Often used on testnet networks, it gives you a limited number of tokens initially or regularly to allow you to perform basic transactions related to the project, such as claiming or activating your miner.

ROI – Return on investment represents the number of days you will have to work your miner or the waiting time before earning the same amount that you invested in the project (excluding your time of course)

Proof of Work

Proof of stake

Nft

TGE – Token generation event is a business and technical act of limited duration that involves the technical generation of the token in a blockchain-based network, and its launch to the market, normally in the form of a public sale, private sale, or initial coin offering (ICO). It usually follows a period where you will have received tokens on a testnet that you will have accumulated by mining testnet tokens or participating in quests or simply by purchasing tokens at a fixed price unually incresing over tthe duratin of the AirDrop.

Vesting – A set of rules that prevents you from exchanging all your accumulated tokens within seconds of the TGE. This often prevents a collapse in the value of the new coin. Also known as a cool-off period.

DePIN – Decentralized Physical Infrastructure Networks

GameFi – Decentralized Game system

DeFI – Decentralized Finance

MEV (Maximal Extractable Value) https://www.coingecko.com/learn/what-is-mev-maximal-extractable-value-crypto

Layer 1 – A Layer 1 blockchain is the base layer of a decentralized ecosystem: it is an autonomous network that defines its own consensus rules, stores and secures data, and manages the validation and finalization of all transactions directly on its own chain.

Tokenomics – Describes the economic system and operating mechanism of a cryptocurrency or token. Often used to describe the distribution of tokens allocated to miners. For example, the Entropy project boasts of allocating almost all, if not the majority, of its revenue to miners with their slogan « Miners eat first! »

DYOR – Do Your Own Research. Influencers should always encourage you to make your homework before getting in a project.