Token Issuance on Syscoin Platform and Masternode Innovations
Assets and Token Issuance
We are adding a new token issuance service into Syscoin. This will allow anyone to create a custom asset token which can then be sent directly to anyone else on the network, and we envisage a variety of use cases including ICO token issuance, supply chain management, reward points, and loyalty programs.
Asset tokens created on the Syscoin network can be minted with a custom data payload assigned to them, effectively coloring the tokens issued in that minting and allowing for use cases which require asset classes that have tokens which are explicitly linked to unique lots of that asset. For example, a gold depository could create a token which represents partial ownership in gold bars, and then issue lots of that token which represent ownership of a gold bar with a specific serial number.
To create a new asset class on the Syscoin network, users will issue an asset_create command with an asset symbol, name, description, decimal places, and an optional total issuance cap, which will prevent the asset creator from later minting more tokens than initially specified.
Tokens of that asset can then be issued by the asset creator using the asset_mint command with the token name, a desired token amount, an optional data payload to color the tokens issued in that minting, and an optional destination alias or address to send the minted tokens to.
Additionally, tokens of the asset can then be sent to any alias or address on the Syscoin network using the asset_send command. Several other commands will exist to allow for the listing of asset details and balances. The transfer of assets may happen instantly with the use of our instant transaction feature. This provides an inherent benefit to tokenize business models using Syscoin’s token issuance service over other competition such as ERC20 tokens on Ethereum
Masternode Innovation update
It has been an eventful beta period for us and we are now testing masternodes on Testnet 3 with several exciting new features:
- Miners and masternodes now share transaction fees 50/50. This is an additional incentive for masternodes, in contrast to Dashpay where miners receive all transaction fees.
- We have introduced a governance system whereby development proposals can be created on the blockchain and submitted for funding. The breakdown of how block rewards are used in this system is shown below under Decentralized Governance.
- Always looking to innovate on top of the masternode codebase, we have introduced a seniority model to incentivise long-term masternode operation, offering a potential increase of up to 27% Return On Investment (ROI). The breakdown for the increase of ROI over time can be found below under Masternode Seniority.
It’s been noted that Syscoin price fluctuations may in turn cause fluctuations in the number of masternodes running on the network. To mitigate this and incentivise nodes to provide services consistently for long periods of time, we have introduced a seniority mechanism that increases ROI for long-term nodes. Every 4 month period in the lifespan of a single masternode will result in a 3% increase in the ROI for that masternode. A maximum ROI bonus of 27% is possible if the masternode is operational for 3 or more years.
The breakdown of the block rewards will now be as follows:
75% Rewards to Masternodes
15% Rewards to Miners
10% Rewards to Decentralized Governance Proposals
Decentralized Governance Blockchain Budget (DGBB) is a method to solve two pervasive problems in cryptocurrency: governance and funding. Governance in a decentralized project is difficult because by definition there are no central bodies to make and authorise plans for the project. In Syscoin such decisions will be made by the network, or more succinctly: by masternode owners. The DGBB system allows masternode owners to vote for or against proposals that will impact the network, and it consists of three components:
- Proposals are a request to receive funds.
- Proposals can be submitted by anyone for a fee of 500 Syscoin. The proposal fee is destroyed on submission.
- Proposals cannot be altered once submitted.
- Votes are cast by Masternode owners.
- Votes can be changed at any time.
- Votes are counted approximately every month. (43800 blocks)
- Budgets are proposals which receive 10% of all votes cast, and have a majority of yes votes.
- They can be nullified at any time if vote totals (cast or recast) fall below the approval threshold.
- Order of processing is determined by comparing the number of Yes and No votes; more popular budgets get payment priority.
- Budgets are paid directly from the Syscoin blockchain.
- Approximately 168630 Syscoins will be available for each budget cycle (per month), declining by 5% per year.
Proposals will be integrated directly within the Blockmarket software so that users can view the current budget status and masternode owners can vote easily and securely.
Masternode core code update
Our core developer, Jag Sidhu, has been working with the Dash core developer, UdjinM6, to improve the masternode portion of the codebase. Jag engineered a pull-request fix that had been a long-standing issue in the Dashpay codebase, and he gratefully received a bounty for doing so. More info:
Thanks @sidhujag for finding the buggithub.com
Jag is currently working with UdjinM6 to remove the enforcement of txindex on Masternodes, since doing so creates an exponentially high storage cost requirement for these nodes as the blockchain grows.
@UdjinM6 It looks like txindex=1 by default in the later version of Dash to compensate for GetTransaction failing due…github.com
As you can see from the above txindex issue, we are headed towards a model in which Masternodes will live on the blockchain as opposed to a simple P2P existence. With this implementation we can do deterministic quorums that allow for things like our Sidechains and EVM execution plan. Speaking with UdjinM6 has re-affirmed this is the direction the industry is headed, and what Syscoin brings to the table will enrich the status quo rather than compete with Dash’s Evolution offering. We believe that by working together we can help each other solve complex problems and provide financial and individual sovereignty to those who truly need it: the users.