In this paper we introduce POM, which has taken all the good qualities of the POS mechanism, but has improved upon it to tailor towards gaming projects that currently utilize the blockchain. The mechanism is designed for the Ethereum blockchain as a set of smart contracts written in Solidity. As we expect the Tap ecosystem to continue to grow and add more and more users, we want to ensure that a relevant consensus algorithm is in place to continue to foster a gaming mentality. This is why we will be introducing Proof-of-Mastery (POM). Improvements have been implemented to deter the predictability of the system and to ensure that offending approvers do not abuse the system. Proof of Mastery is a mechanism built on consensus algorithm on the Ethereum Blockchain.
With the introductory of Proof of Mastery, users are required to interact with the platform, converting from in game digital currency to TTT, completing steam challenges, entering and playing in tournaments, in order to gain experience points. These experience points help users level up towards achieving max mastery. Those who have reached max mastery are then eligible to vault their tokens which enable them to receive hourly rewards for groups of conversions on the platform. This ensures ultimate use of the Platform and the Tapcoin. We will also continue to expand and reinforce the new system to ensure that attack surfaces are minimized before any abuse can be done to the system.
POM (Proof of Mastery) creates the opportunity for staking, very fast transactions, and very low transactional costs. POM will run on a fully compatible EVM-based sidechain, allowing for main net interoperability, while as the same time providing more efficiency, lower fees and other benefits relative to current EVM consensus mechanisms.
Using the proven technologies/methods of the Ethereum network, our side chain improves on this by reducing transaction costs, and reducing computational costs to improve speed.
POM Consensus Model
POM is a self-sustaining, virtual entity connected by smart contracts on a public blockchain. Incentives and controls are put in place within smart contracts within the EVM and the execution state is stored on a public chain that implements the POM mechanism. The underlying POS exits within the POM as a core component. This model has been modified to provide improvements and tailor the consensus algorithm towards gaming and gaming projects.
The primary incentivized mechanism of the consensus algorithm is reward distribution. The ERC20 token TTT is used for staking, it is also used to provide rewards. This is known as the networks main coin.
Each side-chain transaction is assessed a transaction fee (or gas fee), this default fee is typically set very low. The lottery winner that is selected from the lotterypool and assigned approver collects 80% of the transaction fees associated with that conversion period, with the remaining 20% being divided between the remaining lotterypool candidates. The rewards is not distributed to all holders of Tap, only those in the pool. If an approver or lotterypool candidate is removed due to misbehavior, they are removed from the pool, loose eligibility permanently and 50% of their staked tokens.
Let’s look at an example of how this might work.
Staking and Mastery Eligibility
Participants in POM stake their assets, in the form of tokens or coins. Candidates who hold a higher percentage of coins/tokens have greater odds of becoming an approver on the network. Only those that have reached a mastery level are then eligible to stake their tokens. Mastery level is defined by the platform. Users of the platform are required to interact by means of converting from in game digital currency to TTT, completing steam challenges, entering and playing in tournaments, in order to gain experience points. These experience points help users level up towards achieving max mastery. The approver is then chosen at random out of those that have achieved max mastery and have chosen to stake their tokens. The addresses of those eligible are placed in a lotterypool.
The minimum amount of tokens that are required to be staked is 250,000 (TTT). For every 250,000 that is staked, the lotterypool is filled with the eligible candidate’s addresses. For example, if a mastery candidate stakes 500,000 tokens, they are assigned 2 entries with their addresses assigned to them in the pool. If a mastery candidate only stakes 250,000 tokens, then only 1 entry with their address is assigned.
The algorithm randomly picks the winner of the lotterpool and assigns them as the lottery winner (approver). The approver receives 80% of the transaction fees as a reward with the remaining 20% percent being shared between the remaining staked candidates. If an approver is caught misbehaving or abusing the system, they will then lose 50% of their staked tokens. In order to minimize the chances of a particular approver continually winning the lotterypool by always having the largest staked percentage, a protocol will be put into place that prevents this outcome. This protocol will ensure that if an approver has won the lotterypool 3 consecutive times in a row, then on the 4th their address will be excluded from the lottery winner’s pool until a new address has been selected, then at this time they will become eligible again.
The networks operation are divided into staking frames. The new staking frame begins immediately following the payout of the previous lottery winner. At the conclusion of each staking frame, the algorithm randomly selects a new approver from the lotterypool. Inactive users are ignored. If an eligible candidate withdraws all of their tokens/coins from their staked wallet or decided not to stake, they will be removed from the pool and no listed eligible until they meet those requirements in the future. Staked mastery users must hold the minimum amount required to be eligible.
The minimum stake is relatively large, encouraging institutional holders to become approvers. The large stake creates additional invectives for eligible mastery candidates to use the platform for good and discourages misbehavior on the platform.
The protocol implements a random number generator, which is used to randomly select the lottery winner/approver from a group of staked mastery eligible addresses at the end of each staking frame.
POM Network Bridge
POM smart contracts are utilized within this consensus mechanism. The POM token bridge is used to connect Ethereum chain instances to the side chain. In this instance participants bridge their erc20 tokens from the Ethereum main net to the POM enabled sidechain, and have the ability to move the coins back to the main net when needed. A synchronization effect is also done every ~12 hours to ensure a source of truth across both chains.
The POM mechanism is intended to ensure that a relevant algorithm is in place to continue to foster a gaming mentality, where continues interaction, participation, along with gamification is rewarded to those that strive to achieve such level of mastery.
*This document and its intellectual property therein is property of the Tap Project