Snax is designed to be a blockchain-based social overlay which rewards content creators on popular social platforms with one block being produced every 0.5 seconds.
General information
Snax emission is a unique mechanic that is built on the following principles:
- Early users registration is not a basis for future preference, unlike Steemit, for example
- People with high social activity weight on their platform should receive high rewards.
- Differences in social platforms should be accounted for, as a fair distribution between smaller and larger platforms is necessary.
Because of these principles, SNAX emission is a complicated function with multiple inputs. Token emission is separated into two stages, with a fixed supply of 100'000'000'000 tokens in the first stage and an emission of 2'000'000'000 SNAX tokens every year after the first stage is over.
There is no ICO for Snax, Snax Foundation will conduct a partial pre-mine of SNAX tokens instead.
Out of 100 billion tokens issued in the first stage of emission, 16 billion will be pre-mined. Pre-mined tokens will create a fund that will be divided into the following parts:
- Snax Foundation strategic reserve — 4.25 billion.
- Marketing of the platform — 5 billion.
- Ensuring market liquidity — 5 billion.
- Snax team — 0.75 billion.
- Registration Airdrop fund — 0.5 billion
- Stacking for CPU and NET for new accounts — 0.5 billion
Registration Airdrop fund will be created at the launch of the main net and used to give the first ten million users a registration gift of 50 SNAX. We want everyone to have a chance to get some SNAX tokens to explore the social transaction features of our platform as described in our previous post.
All of the team, marketing, developing and reserved tokens will be sent to an Escrow smart contract.
This smart contract will act as a trust fund, with tokens stored there being able to participate in voting and delegating, but not used for transactions before the contract expires. The fund will be divided into ten parts, each part released six months after the previous one, with the first one being released 48 hours after deployment of the contract.
This is done to ensure the transparency and predictably of the fund’s resources as well as to motivate the Snax team to achieve continuous growth over the years.
Block producers and Publisher rewards
There are two main ways to earn SNAX tokens: by becoming a block producer for our network, or by monetizing your activity on the social networks through publisher rewards.
In the first stage of the emission, block producers receive rewards based on how many tokens there are in the circulation — the more tokens get into circulation the smaller the reward gets. This is done to prevent a situation in which block producers will have total control over the network due to large voting power. In the second stage of emission, block producers receive a fixed amount of the total 500'000'000 tokens emission every year.
Publisher rewards are determined by a mechanism similar to a search engine’s ranking system.
For different platform, the formula will be different, but the general principle is akin to how Google indexes websites to make sure you get the most relevant search results.
Snax takes into account factors like how popular is a person who upvoted your Steemit post or retweeted your tweet, how many likes or retweets you got over a fixed period of time (different for each platform), how many people are there on the platform and how supportive the followers are of your tweet. We will publish an extensive explanation for the mechanism behind publisher rewards for each platform that is integrated into our system in our white paper. You can already find a general formula for how your publisher rewards are calculated for any platform.
A total amount of rewards received by each platform is determined by block producers and the activity of people on that platform.
Block producers can establish a relative weight for each platform to account for a difference in their size — for example, if Steemit has 100 times fewer users than Twitter, then it should receive a relative weight 100 times less than Twitter would.
However, if Steemit users are way more enthusiastic about joining our platform then, it can happen that despite having a disadvantage in the size of their platform, they can still receive more tokens as a platform than Twitter. You can see the code of model on GitHub with parameters like a relative weight of the platform and percentage of users who adopt our platform in model.py file.
It is hard to predict how people from different platforms will adopt our technology, so it is impractical to try to estimate the number of tokens that each platform would receive.
The more influential people would join from each platform the faster all of the tokens from the 1st stage will be emitted.
Our models estimate that it would take at most ten to twenty years for the first stage of emission to be completed, and about five years with a more positive adoption rate. Those models are based on an increasing growth rate after a few years of slow adoption with not more than 2% of total Twitter influencers joining the network by the end of the period.
To sum up, SNAX token emission will depend highly on the adoption rate by the social network content creators. This emission mechanism brings a balanced total circulation — if there are few people who are adopting the chain, then there are fewer tokens in circulation leading to the higher price of an individual token and if there are many people who are using our system then it adds to the Metcalfe’s law effect described in the previous post, creating higher economic value for each token. Such supply law gives a win-win market situation regardless of the adoption dynamics at the beginning of the network.
If you have questions about how Snax emission works, or about how to become a block producer for our network, feel free to join us in our Discord at https://discord.gg/qygxJAZ. Don't forget to follow us on Twitter and to clap for this post!
Also, you can find answers to frequent questions here https://snax.one/faq.
