Rating, token staking, staking time

The main mechanism for achieving consensus in the network was laid down by the Stellar developers and has not changed. However, to achieve special benefits, we have created a block of governing smart contracts that add a complex system of rewards and penalties, in addition to the one inherent in Stellar.

The following procedures are used for this:

  • joining mining pools and selecting delegates

  • temporary staking of user's personal tokens and incentive tokens

  • mining pool rating

  • rating in the form of chip income

  • chip or proprietary hardware tariff plan

To maximize the benefit from each new block, each chip must follow the same general algorithm. If the algorithm is violated in any way, this will either reduce the reward for each chip (from “a little” to zero), or in some cases the abuse will also result in a fine being written off. Users who purchase the chip do not need to worry about fines; it is simply a self-defense mechanism against hackers.

The first part of the influence: income increases if the chips are united according to an algorithm into mining pools and choose their delegates. If implemented correctly, all chips in such a pool receive an equal % reward (and not just delegates). If all mining pools work correctly, the reward is divided among all mining pools and all chips.

The second part: this is temporary staking of user tokens. The user always has incentive tokens, which the system will give once at the time of purchasing the chip. This gives basic authority. All the user’s tokens from his wallet can be automatically added to them. Tokens on the wallet will appear either due to the operation of the chip (as mining income), or the user directly purchased tokens. The entire total volume of tokens automatically participates in short-term staking when a new block is generated. The user's tokens are blocked for the lifetime of the mining pool (about one hour). Immediately after, the tokens are transferred for staking to another pool. The more tokens, the higher the reward for the chip, relative to other chips.

Users have settings to not have their tokens locked if they choose. This will reduce the reward %. Or you can set a threshold of tokens that can be staked, while the rest remain always available. It is also possible to withdraw all of their staking money almost instantly, but the reward will be lost. By default, all tokens are staked at once, as the most profitable strategy for the user.

When purchasing a chip, incentive tokens are transferred to the user’s account. To increase income, the user can either buy several more chips, or simply buy tokens and allow just one chip to use them. The income distribution formula is set up in such a way that it is not profitable to have more than 2-3 chips. The volume of incentive tokens from many chips will give less income than one large account with one chip.

Third part: this is the rating of mining pools. Verified chips and user equipment can work in the blockchain (if they so desire). All chips are combined into mining pools consisting only of chips. All other equipment is combined into the same mining bullets, but where there are no chips. This turns out to be 2 mining pool spaces. The company is responsible for the operation of the chips. For the operation of the user's equipment - only he himself, i.e. such nodes may not work well. According to the blockchain ideology, for any harmful actions (starting with inaction, problems with computer and Internet speed) fines will be charged and the rating of the mining pool will be lowered.

To prevent monopolists from mining pools from appearing on the network, they must constantly gather and disperse, once every certain period. It is in order to prevent the collection of an infinitely large good or bad rating that it is assigned to the mining pool. It is impossible for users to choose which mining pool to connect to.

The most profitable strategy is to gather in pools according to the general blockchain algorithm by choosing the number and specific number of the mining pool, for the working time provided by the formula. Any deviation reduces the % of the reward or a rating downgrade follows.

The fourth part: this is the pseudo rating of each chip in the form of a mining reward. This forces the chip to fulfill the requirements placed on it by the general algorithm. For example, if he engages in independent mining, he will receive a very low percentage of the reward. Or if he tries to vote for blocks on behalf of the mining pool without being its elected delegate. Or he will avoid work altogether, although he was chosen as a delegate. For destructive actions there will be not just a loss of reward, but an additional fine. The better it is to follow the established algorithm, the higher the % reward.

Fifth part: this is the tariff plan. When purchasing a chip for one of 3 price options, the user receives the corresponding % reward. The higher the cost of the tariff plan, the higher the reward in each block. The tariff plan is paid once and is simply a chip purchase, no additional recurring fees are collected from users.

In total, to increase the % reward per block, it is necessary to comply with all aspects of the overall complex strategy. Then the final reward distribution formula will assign the maximum possible volume of tokens as an incentive for creating a new block. The strategy is already fully implemented in the chip software and the user has nothing to worry about or understand the technical details.

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