PoS and SN ROI by visual — with calculation: Explained

YolmerD
5 min readJun 11, 2018

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First look at FUSION Mainnet Parameters:

  • Total Supply 57344000 FSN(NOW)
  • Average Block time 15s
  • Lock-In Lock-Out Block reward 6 FSN
  • TX Block reward 2.6666666 FSN
  • TX Block vs LILO Block 9:1 (90% of Tx Blocks vs 10% of LILO Blocks)
  • Number of collateral FSN for Supreme Node 5000 FSN
  • Supreme Node can compete for PoS stacking in 9 transaction blocks

Overview of ROI of PoS and SNs:

Annual PoS RoI = Daily PoS RoI * 365

Annual SN ROI = Daily SN Block Rewards * 365

To visualize the PoS and Supreme Nodes ROI there are 3 graphs, an
explanation on these graphs can be found below.

In graph 2.1 and 2.2 we take the 1000, 2000, 3000, 4000, 5000, 8000 and
10000 Supreme Nodes into account. In these graphs, the lines won’t start
from the same point on the X-axis as did in graph 1.

This is because the number of all Supreme Nodes that we take into account
hold a higher percentage of the total supply then for example 10 or 20%.

You can see the math I did to calculate the total supply and the PoS and SN
ROI, in the example I used a number of 2000 Supreme Nodes, as you can
see this number exceeds the 10% and thus far there is no outcome to be
found on the 10% (found on the X-axis).

TOTAL SUPPLY:
NUMBER OF ALL SUPREME NODES * AMOUNT OF FSN REQUIRED FOR
A SUPREME NODE / TOTAL SUPPLY * 100 = PERCENTAGE OF ALL
SUPREME NODE COLLATERAL AND PoS STAKING AS A PERCENTAGE
OF TOTAL SUPPLY (in this case only the Supreme Node holders are solving
blocks)
2000 * 5000 / 57344000 * 100 = 17.43%

PoS ROI:
SECONDS * MINUTES * HOURS / AVERAGE BLOCK TIME X BLOCKS TO
GET REWARD FROM * BLOCK REWARD / PERCENTAGE OF ALL
SUPREME NODE COLLATERAL AND PoS STAKING AS A PERCENTAGE
OF TOTAL SUPPLY * TOTAL SUPPLY * NUMBER OF DAYS IN A YEAR *
100 = PoS ROI
(60 * 60 * 24 / 15 * 0,9) * 2,666666 / (0.1743 * 57344000) * 365 * 100 =
50.48% PoS ROI

SN ROI:
SECONDS * MINUTES * HOURS / AVERAGE BLOCK TIME * BLOCKS TO
GET REWARD FROM * BLOCK REWARD / NUMBER OF ALL SUPREME
NODES * NUMBER OF DAYS IN A YEAR / AMOUNT OF FSN REQUIRED
FOR A SUPREME NODE + PoS ROI
(60 * 60 * 24 / 15 * 0,1) * 6 / 2000 * 365 / 5000 * 100 + 50.48 = 63.09

Source: FUSION-SupremeNode-ROI-Analysis-2018052

Three Steps to calculate the Daily FSN rewards:

Because there are 2 different kind of blocks (Tx blocks and LILO blocks),
each step will calculate 2 different reward for PoS Tx (the rewards for Staking
for transaction blocks) and reward for LILO (the rewards for staking for Lock-
In Lock-Out Blocks which require a Supreme Node, but note that LILO reward
is not SN reward).

Step 1: Calculated the daily numbers of blocks
Step 2: Calculated the daily fixed total reward
Step 3: Calculated the daily reward per FSN

1. Determine the Number of PoS Tx Blocks and the LILO Blocks daily

Firstly, calculated the total Seconds in a day by Seconds * Minutes *
Hours, then divided by the time it takes to process each block (15
seconds). The result would be the total number of block during the day

The Total Number of blocks (per day) include both the Tx (transaction)
blocks and the LILO (Lock-In Lock-Out) blocks.

It is given that there ratio between Tx Blocks and LILO BLocks is 9:1

To get number of Tx Block, multiply the number of Total Blocks with % of
Tx Block which is 90%

To get number of LILO Block, multiply the number of Total Blocks with %
of LILO Block which is 10%

2. Get Total Reward Daily for PoS and LILO

Multiply the Tx Blocks per day with the Tx Block reward 2.66666 FSN will
get the Total Reward for PoS Tx Block for that day

The number of both two kind of blocks per day is fix, and the reward for
each block is also fixed, thus the daily reward of Tx Blocks (and LILO
Block) is fixed

But the only variable here is the number of FSN coins is being staked,
thus different number of FSN coins currently staked will get different
reward % per FSN coin

To get the reward for each FSN coin, divide the total daily reward for PoS
Tx blocks or LILO blocks by the corresponding number of FSN used in Tx
or in SN (for LILO blocks)

3. Daily Reward of PoS Tx and LILO per staked coin

To get PoS Tx reward per FSN, divide the Total Tx PoS reward by Total
number of FSN being staked (including both in Tx PoS and those in SNs)

To get the LILO reward per FSN, divide the Total LILO reward by Total
number of FSN being staked in SNs (exclude the number of FSN outside
of Supreme Nodes)

To get the Supreme Nodes reward per FSN, combine the LILO
reward per FSN and the PoS Tx reward per FSN

I would like to thank Thong Tran and a community member for putting up this article with me.

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YolmerD

“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.” — Margaret Mead