CORE MAGAZINE April 2017 | Page 60

Incentivizing Proof of Stake mining.

We’ve launched a new asset, Miners Reward Token. The idea behind it is mining incentivization, more people should have a reason to maintain a full node. It’s important for POS systems, since in a usual set-up all you get in proof-of-stake blockchains as a miner is transaction fees, which are not so big if you don’t have tons of transactions in the network. Probably it would make sense to create a POS system with a block mining bounty as in Bitcoin, but it’s not so easy conceptually, since in POS systems all native tokens are distributed in the genesis block.

So,as a temporary solution, (as long as we don’t have tens of thousands transactions in the network per hour), we will be rewarding miners with a new asset https://t.co/YV4rZdzRTn. Each miner will be receiving 50,40,30,20,10 tokens per mined block, with “halving” taking place each 50000 blocks. The asset will be distributed in about a year.

So where does the value of this asset come from? As you know you can get mining fees on Wavesplatform not only in waves but also in custom tokens. So token issuers should have an incentive to strike a deal with miners regarding accepting their assets as fees. An automated way to do that would be distributing some bounty in the asset to active miners. That could be done through distributing it to the MRT holders, which are exactly that, miners.

On top of that, miners will be able to vote for certain network parameters and issues, similar to the proposed scheme for Waves Community Token. This is a quite flexible tool, so many other ways to use it could come up later.

Blockchains are technical mechanisms of social consensus, so it’s very important to engage system participants in securing and maintaining the network. I believe that MRT is a right step in this direction.

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