ClusterToken: How a single token can be worth 100 Ether.
July, 2017. A brand new token does a stealth launch. No big presale topics, no public ICO, no pre announcement, just the release of the token without prior warning. This token, known as ‘ClusterToken’ consists of a few aspects that are intriguing in terms of investment and rewards. Let’s get in depth.
What we need to know first
These are the details about the token that matter to understand why ClusterToken is different from the rest.
1: Trustless self mining contract
ClusterToken is the third token that launches on the Ethereum network that implements the so called ‘self mining’ method. Rather than mining cryptocurrency real, it has a mathematical calculation based on the parent’s blockchain.
2: Clusterized reward system
Where regular mining, or even ‘self mining contracts’ give rewards for every block solved on the network, ClusterToken differentiates itself by adding a cluster that needs to be completed before any rewards can be claimed.
This cluster exists of 3 different units, that each have their own phase in order to becom a a single cluster. The units are as follows:
- UNIT: The base unit of ClusterTokens. Each block generated on the parent’s blockchain gives 1 UNIT to the ClusterToken Smart contract.
- SEGMENT: Every 1000 UNITS, 1 SEGMENT is added to the ClusterToken Smart Contract. Mathematically, one SEGEMENT equals a thousand UNITS.
- CLUSTER: Every 1000 SEGMENTS, 1 CLUSTED is added to the contract. This is the main reward for token holders, and the base unit for ClusterToken.
Mathematically, 1 CLUSTER equals a thousand SEGMENTS and one million UNITS generated.
Essentially, every one million blocks on the parent’s blockchain mined will produce 1 CLUSTER to be distributed among all ClusterToken holders.
3: Proportional reward structure
Now that the cluster system is explained, we can move on to how the rewards are calculated. The reward structure is set by the following mathematical formula:
REWARD = 1 CLUSTER / HOLDERS * SHARES
What makes it valuable?
Theoretically spoken, ClusterToken has very little value to start out with. If we take into account all calculations that happen and forget a moment about the cluster system, you would be rewarded 0.000001 CLRT (Cluster symbol) for every block that miners find on the parent’s blockchain.
But, the cluster system is there, written in the code. This means we have to go trough a process of 1.000.000 blocks before we get a payout. In human language, this equals to roughly 7 months until users can claim a reward.
The rewards given, are 0.000001 CLRT * 1000000 blocks = 1 CLUSTER.
Next, we need to use their proportional reward system and calculate how much we will receive. Let’s assume we invested 1 Ethereum in ClusterToken and there are 100 holders:
1 Ether = 100 shares. 1 / 100 * 100 = 1 CLUSTER
This means you would theoretically receive 1 CLUSTER as a reward!
However, 100 holders over longer periods of time is not realistic. Let’s make the calculations again, based on 1000 holders first:
1 Ether = 100 shares. 1 / 1000 * 100 = 0.1 CLUSTER
And what if it takes off, and we have 10k ClusterToken holders?
1 Ether = 100 shares. 1 / 5000 * 100 = 0.01 CLUSTER
As you can see, the more holders are joining ClusterToken, the smaller the reward pool for every uses gets. Over longer periods of time, this will be an interesting token to watch, as it’s unclear what the markets will do with this very limited amount of tokens available.
100 Eth per Cluster?
People will stumble over the price of 100 Eth per Cluster. Please keep in mind that 1 CLUSTER is the ‘reward’ for waiting one million blocks instead of having a payout of 0.000001 CLRT per block. In essence, there is not a digit of difference between the reward per block, or the total reward for a million blocks. In no way is it intended that anyone simply buys 1 or multiple ClusterTokens from the contract address.
How can I get ClusterToken, and should I get in now?
As described above, the sooner you’re in, the better it might be for the rewards.
The ClusterToken smart contract address is 0x08fd34559f2ed8585d3810b4d96ab8a05c9f97c5
To get some ClusterTokens, you can send funds to this address or follow the very detailed instructions on the website, https://www.clustertoken.io
The ClusterToken team is very committed and without a doubt has delivered what they promise without any kind of presale or marketing.
For any questions, visit the Github repo’s or the website.