CARTESI RESERVE MINING: what to know.
Cartesi, operating system for DApps (Decentralized applications), is the link between Linux and the blockchain. It allows DApps to take advantage of Linux, then aims to make them as powerful, scalable, and easier to build as possible.
Cartesi is about to release its mainnet Proof of Stake (PoS) system, this has been anticipated for a while now, and it is poised to make Cartesi a unique scalability solution for decentralized applications. After the launch, it will be possible for users and $CTSI holders to stake the token for rewards.
The era of Proof of Work (PoW) is dying, as it is not sustainable. For Cryptocurrencies based on PoW, their algorithm uses mining which involves having to solve computationally intensive puzzles for the validation of transactions and creation of new blocks.
Solving the puzzles require a great deal of computing power as different cryptographic calculations need to run to successfully unlock the computational puzzles. The great computing power means a reasonably high amount of electricity and power is needed for the PoW.
To make things a lot scalable, PoS is seen as the alternative to PoW as less computational power is required. Ethereum 2.0 is based on this consensus mechanism.
Proof of stake (PoS) is defined by wikipedia as a type of consensus mechanisms by which a cryptocurrency blockchain network achieves distributed consensus.
CTSI RESERVE MINING (Proof of Stake)
There are three major components involved, each worth noting:
=> Selection of Block Producers
To be able to participate in the Cartesi PoS, users need to run nodes continuously. The number of tokens staked by each user boost their chances of being selected as a block producer, albeit randomly. As selection is done through participation in a lottery.
Selection of block producers make use of an efficient mechanism that reduces fees and race conditions on the underlying blockchain. The selected user will receive a block reward that will be extracted from the mine.
Since users are required to continuously run nodes to get the rewards of a block producer, having a failure of the node's availability/connectivity can result in the user losing the corresponding reward.
But in this Cartesi's design of Proof of Stake system does not include slashing, this means there is no risk for the user to lose their staked tokens due to the aforementioned failures.
=> Cartesi Services
Having users to run their personal nodes requires them to be online for an extended period of time which can be a burden, which is why Cartesi will release a platform for staking. The platform will make it possible for users to delegate staking procedure to Cartesi, making the burden lighter for them to run their nodes.
Also, Cartesi will make it possible for users to outsource staking responsibilities to organizations in partnership with the project. This will be in form of delegation, users and the service providers will get to split the mine rewards.
=> Token rewards
25% the total supply of $CTSI has been set aside for the mine Reserve, these tokens will help bootstrap the staking participation rate until the fees paid by the network users become large enough to sustain an appropriate staking rate.
According to Cartesi's roadmap, 5% of the total CTSI supply will be used as mine rewards in the first version of the protocol. More tokens will be released in batches after announcing to the Cartesi community.
The value of each reward will stay constant for a period of six months, then it will decay exponentially over time.
There is a formula used by Cartesi for calculating returns on amount of tokens staked by users :
R = 5% / P
Where:
R = Return over the amount staked
P = Proportion of the tokens that have been staked.
From this formula, if 40% of $CTSI tokens are staked, each users will earn average 12.5% of returns per year during the plateau (of approximately six months).
The value of R will be measured and a real-time updated estimate of R will also be provided when Cartesi's staking user interface is released.
The Cartesi Project is very transparent, every move made is communicated to the community. You're are welcome to join the community and be part of the participant.
Pre-Staking is already available on Coinone:
Official announcement on Twitter
Get connected to the Cartesi team :
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