Tezos

PoS systems are fairly common in the crypto space in recent times. What sets Tezos apart from the other PoS systems is its use of on-chain governance. What is on-chain governance? Think of a decentralized government that allows holders of Tezos to vote on various changes. For example, the developers can propose an idea to hard-fork Tezos into another Crypto called Tezos Cash. Each node then has the opportunity to accept this hard-fork or reject it. This is a system that is being adopted by a lot of cryptocurrencies and is a system that still requires testing but looks very promising for having smoother growth in the years to come. 

How does the blockchain work?
The Tezos platform has individual holders called bakers. A baker’s main job is essentially that of a miner in Bitcoin, they secure and manage the network, verify transactions and distribute block rewards. All of this is done through the Proof of Stake consensus rather than mining through expensive hardware. Unlike other cryptos, Tezos doesn’t have a maximum supply. Bitcoin is an example of a crypto that has a finite supply at 21 million, meaning that has its supply gets smaller and smaller, the price of bitcoin should theoretically go up as the asset becomes more rare(deflationary asset). Tezos on the other hand doesn’t have a hard cap and has an inflation rate of 5.5%. This may seem like a negative point, but the convenience yield may indicate that the inflation aspect is overhyped. 

Convenience yield – As defined by Investopedia, convenience yield is the benefit or premium associated with holding an underlying product or physical good, rather than the associated
derivative security or contract.

Essentially, there are sometimes benefits to holding the actual product during certain market movements as apposed to holding the derivative. An example, having bundles of wheat during a wheat shortage crisis would be more beneficial than holding wheat futures or other wheat derivatives. 

comes to cryptos, inflation can be overhyped. If the crypto has real world application and real-world adoption, then over time the inflation rate will become obsolete due to the pool size growth outweighing the amount of currency being created each year. The inflation rate also has the indirect side effect of incentivizing individuals to stake their Tezos to combat the inflation, forcing long term investments as well as making the network more secure.