POWR ERC20 token is one of the tokens used in the dual-chain peer-to-peer energy trading platform Powerledger. The other token, Sparkz, is used on the Ecochain platform. The POWR coin’s primary functionality is to allow users to access the Powerledger platform to buy, sell, and trade energy.
The Powerledger project was established in Australia in 2016. It aims to democratize and decentralize global power supply with a focus on renewable sources like wind and solar energy.
As of writing, the POWR token has a market cap of $117.3 million with a daily trading volume of $48.2 million. The token has a circulating supply of 485.5 million POWR.
Powerledger executed an initial coin offering (ICO) in September 2017 and released 35% of the maximum 1 billion POWR supply. It raised AUD$25 million in public and private sales. It was considered the most successful ICOs in Australia, attracting interest from several utility providers, including Origin Energy, the largest in the country.
The blockchain startup then released more tokens in 2019 but removed over 2.7 million in circulation as part of its deflationary strategy. Powerledger retains 50% of the POWR supply in its own wallet, put aside for future funding initiatives and incentivization of future adopters.
The primary use case of the POWR ERC20 token is to provide access to application hosts and participants of the Powerledger platform.
What the platform does is remove the renewable energy markets from the middleman and place them in the hands of end-users. Its solutions include P2P energy trading, solar swap, and other noteworthy projects like sustainable land developments, grid stability, and flexibility services.
The platform’s three main energy products are xGrid, uGrid, and Power Port.
Using the Ethereum blockchain, users can buy renewable energy and sell their own unused renewable energy. Ethereum acts as a ledger and settlement mechanism for the energy trades, providing traceability and transparency.
The Powerledger platforms use two blockchain layers, Ethereum and Ecochain, and can be accessed using their respective coins POWR and Sparkz. The different blockchains support different local currencies and serve different functions. The Ethereum blockchain serves as the network’s external layer, allowing POWR to be bought, sold, and traded globally.
Ecochain, being a private consortium, can be customized according to a specific local area’s energy production conditions, its local regulations, and an area’s existing levels of supply that are connected to a particular grid. In simple terms, these layers ensure that multiple fiat currencies worldwide can participate in the Powerledger ecosystem at different prices.
Where to buy, sell, trade, and store POWR
You can buy and trade POWR in multiple established exchanges, including AAX, Binance, Crypto.com, Coinbase, Upbit, Digifinex, and Huobi. Since it’s an ERC20 token, POWR tokens can only be stored in a wallet that supports ERC20. MyEtherWallet is one of the best wallets to store ERC20 coins, while the best hardware wallets include Ledger Nano S and Trezor.
In 2021, Powerledger announced that it will migrate the platform from Ethereum to Solana in the hopes of achieving higher speed and scalability. This is an unsurprising move since the Ethereum blockchain has suffered slow transaction speeds and high gas fees due to network oversaturation.
Solana is also known to have a lower energy output but the POWR tokens will remain on the Ethereum network and can still be used for existing users.
Further ahead, the blockchain startup made several plans and partnerships, including a BHP Chile project that seeks to provide power to remote communities in Chile. It has also signed agreements to bring the platform to Asia and provide a way to settle microgrid transactions.
All eyes are on Powerledger and its ambitious ideas as its success could completely revolutionize the energy industry by enabling local areas to sell their unused energy and distribute it to their neighbors without the need for middlemen.