<PIVX - Private Instant Verified Transactions Purple Paper. Technical Notes: Seesaw Reward Balance System and Whitepaper aka the Purplepaper/p>
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[Music] a summary of deaf exit technical notes see sorrow loss balance system white paper aka the purple paper revision not 0.8 available March 23rd 2017 from Cove xorg these technical notes are intended to formally document and describe the features and concepts of the private instant verify transaction cryptocurrency this specific document will thoroughly explain it technical details of the Cecil reward balance system along with its intended benefits an introduction the majority of cryptocurrencies the make use of masternodes lets that block reward per blog equally between the mining and masternode distribution mechanisms the intended fairness of this reward distribution can be subverted by the growth of masternodes held when large investors without limits living to potential centralization of the budgeting system much like having a majority shareholder in a company the additional benefits of rottenness can lead to a less number of users conducting proof of stake mining activities and thus lowering the security of the proof of stake network master nets do provide a rival service and should be rewarded for that but our aim here is not to reward them way beyond the extra value they provide we believe that doing so disproportionately benefits the masternode owners above and beyond the other users of the system and ultimately leads to a greater degree of centralization proof of stake to overcome this problem the features outlined in this paper were developed and implemented with the sole intention of ensuring the security of the proof of stake network this is achieved by creating an incentive to stake which subsequently promotes liquidity in exchanges and also controls the growth rate account of the masternode network index overview private instant verify transaction pool pivots is a privacy focused decentralized open source cryptocurrency launched on February 1st 2016 under the name of a comet or D net before it was professionally rebranded to physics our initial proof of work distribution phase ended August 2016 Wendy next transition to the current proof of stake phase pip X runs on the black coin proof of stake 2.0 protocol and is based on Bitcoin core Northpoint 10 code base it utilizes a network of master nodes for an openly visible decentralized governance and increased transaction privacy the main goal of civics is to achieve near instant private transactions and to governance that help sustain the network for the benefit of all the users involved while we are well on our way to achieving this some of the features are under development and should appear in the near future Pemex has an open task and development environment as a highly accessible development team utilizing multiple social networking channels and social media the development team is welcoming of everyone and anyone who would like to join its course regardless of technical expertise we encourage people to just go ahead and do things rather than having lots of gatekeepers or a hierarchical structure where permissions are required to move forward for more specific details and physics please visit to vex org proof of stake 2.0 overview to achieve consensus proof if space 2.0 requires notice running a wallet software proving that it has coins in the blockchain in order to verify a block of transactions the participating nodes receive an amount of blocks proportional to their state period as a form of reward this means that with lots of participating nodes with roughly even amounts of coins the network becomes very secure due to the increased difficulty of owning a majority of coins in the network master nodes overview master nodes are nodes running the same wallet software on the same blockchain to provide extra services to the network these services include coin mixing for increased privacy of transactions instant transactions and decentralized governance that provides a decentralized budgeting system with immutable proposal and voting systems for providing such services master knows that all I paid a certain portion of reward for each book this can serve as a passive income to the masternode owners - they're running cost main feature overview to promote an even ratio between taking notes and master nodes in the network the DivX team has developed a variable seesaw reward balance system that dynamically adjusts is block reward size between master nodes and staking nodes each FedEx proof stakes block reward is split with 10% dedicated to the budgeting system and 90% dedicated to both the master net and stake mining reward the reward portion is further split dynamically via the seesaw rewards balance system between master nodes and staking nodes the logic is simple in its fruits the higher the master node count the small other Awards portions of each proof of fakeblock that will be paid out to the master nodes and the larger reward portion for taking nodes conversely when the master node count Falls the master node reward portion is increased and thus taking note award portion decreased the proof of stake block rewards starts with the ratio of nine to one towards master nodes when the amount of coins lock to master nodes is lower than 1% of the total coin supply but as the number of coins lock to master nodes go above 40 1.5 percent of the total pivot coin supply the block reward amount will shift more than 50% of the blocks reward going to stickiness this has the effect of making it less attractive to provision Walmart nodes as it has the potential to significantly lower as profitability compared to staking that has less upkeep cost this threshold was selected as it would allow a strong network of profitable master nodes while creating an incentive for approximately 60% of the total coins apply to be available for taking to secure the network and to maintain liquidity another intended benefit and goal of the Cecil reward system is to ensure that it is more profitable the users running master nodes than it would be to stake the equal number of coins under the normal circumstances of being below the equilibrium threshold the reason behind this is due to the extra cost risk and time associated with maintaining the masternodes are greater than just taking alone seesaw effect the following graph shows the block reward amount y-axis for the masternodes red and sticky notes blue against the percentage of total coins apply locks by the masternodes x-axis dancing from block 640 8,000 miss May 2017 where each block reward is fixed at five pips the following graph also shows very erratic or annual percentage return starting from blocks six hundred and forty eight thousand where each block is fixed at five kiss was an interval of 60 seconds one thousand four hundred and forty blocks a day the red line represents the return of masternodes where there is zero upkeep cost per masternode and the Green Line is the logical masternode return code on a hypothetical scenario where there is an annual upkeep cost of $300 per master note with the price of each pivot one u.s. dollar coast logic walk through the logic is intended to be simple as possible while being effective this is to ensure stability and to be able to easily determine its outcome and improve its logic if the need arises below is a sample function the block value is the total number of coins per block this value is multiplied by the variable ratio that is determined by the percentage of the masternode coins and note cones in relation to the total coin supply and money supply the result rep value is the number of coins for the masternodes portion of the reward the above example shows the very first logic used to determine the highest masternode portion payout you can see that it's M node coins is less than or equal to 1% of the coin supply and money supply and also greater than zero the return block reward value for the master node will be 90% of the proof of stake ret equaling blocks values 90 this logic continues for each increase in sex edges all the way until M node points is or equal to 99 percent of the coin supply below is another sample function nem node coins value that is beyond 99 percent of the total coin supply or return a fixed equal of one percent of the block value the expectation is that it should never come to this point but the logic is complete to cover all possible outcomes below is another sample function the seesaw rewards balance system algorithm initially started out with only 16 percentage steps it has since been approved and now implements the total of 105 percentage steps to the variable Cecil algorithm that allows for a far more granular step amount summary the seesaw water balance system that pivots utilizers provides numerous benefits over reward split methods used by the majority of masternode featuring proof of state cryptocurrencies one it can indirectly affect the total count of master nodes by varying its reward size to alter its profitability versus staking to promote staking by increasing its reward payment portion when the master node count is high and thus maintaining a high level of network security three profitability of martin ur is kept higher than staking as long as the master node count remains below the equilibrium threshold approximately 40 percent of coins apply for allows all coin owners to get rewarded for holding coins rather than just the master node owners hence resulting in a fairer and less centralized system future plans as the Cecil rewards balance system is still relatively new only five months old at the time of writing this document fine-tuning may be required as the network grows and is better thresholds are deemed more effective but even within the first five months of a prolific system with over 1,400 master nodes that make up over 30% of the current coin supply the algorithm has been proven to work seamlessly as designed source code and links github and other links including Bitcoin talk and ultimate throat official website and masternode payment information finally references proof of steak 2.0 white paper - master note also written by Jackie man edited by Werner Wortman and Spock purple paper formatted by money alchemist narrated by Melina for more information visit to vex dog