IoTeX Mainnet — Staking/Voting & The Grand Design

IoTeX
IoTeX
Feb 22 · 5 min read

Hello IoTeX community! We are quickly approaching the IoTeX Mainnet launch and Delegates election. To get you familiar with the voting process, we will have another blog post coming soon with step-by-step instructions for voters! But first, we explain the design and rationale of IoTeX’s staking and voting process in this blog post.

The Grand Design of the IoTeX Network

While we are extremely focused on launching the Mainnet and IoTeX root chain, we are always thinking ahead about the bigger picture of IoTeX Network for the next 5–10 years. Our long-term design employs Separation of Powers, a term coined by Charles-Louis de Secondat, which states that political authority should be divided into legislative, executive and judicial powers. Inspired by this concept, the grand vision for IoTeX utilizes four layers with unique roles.

IoTeX Architecture Layers

Staking/Voting on DPoS Blockchains is Risky

Many DPoS blockchains (e.g., EOS, Lisk) manage staking/voting on its core operational layer blockchain, which is somewhat risky. Staking/voting is a special type of governance task, which we believe should not be grouped with operational tasks. For example, elected Delegates, as a vested interest group, may disregard staking/voting transactions in the block production process to mitigate being de-elected (i.e., conflict of interest). Furthermore, elected Delegates may enforce protocol upgrades (by upgrading their software without consent from other users) that are not favorable to the rest of the ecosystem.

IoTeX believes deeply in decentralized governance; therefore, tasks such as staking/voting should happen outside of the operational layer. But what are we gonna do before our governance layer (Gravity Chain) is ready? The answer is simple — use Ethereum as the governance layer for now, as our circulating IOTX token (ERC20) is already compatible with Ethereum!

Staking/Voting on Ethereum

Ethereum is a liveness-oriented blockchain that has moderate performance and high reliability, which is suitable for playing the role of the governance layer until the gravity chain is ready. After a few months, the staking/voting and other governance processes will be fully migrated to our Gravity Chain. So, how will the interaction between IoTeX and Ethereum work essentially?

  1. To stake/vote, users send the current ERC20 token to a smart contract deployed on Ethereum.
  2. IoTeX blockchain nodes (running iotex-core software) will periodically pull the state of this contract (call it a “rank feed”) from Ethereum to determine the Delegates and respective rankings for the current and next epochs.
  3. Rewards for Delegates are based on the rank feed and will be distributed on the IoTeX blockchain in the IoTeX native token (not ERC20). The native token will be used to run transactions and execute smart contracts on the IoTeX blockchain.

To facilitate the conversion of native tokens to ERC20 and vice versa, we have prepared a two-way token swap service. ERC20 tokens, which will remain trading on exchanges, can be swapped for native tokens (1:1 swap) to run transactions on IoTeX blockchain. Native tokens, which will be given as Delegate rewards, can be effortlessly swapped for ERC20 tokens to stake/vote or trade on exchanges.

Staking/Voting Process

To streamline the staking/voting process, we have developed an easy-to-use webtool on the IoTeX website. The webtool is integrated with MetaMask and the Ethereum voting smart contract for a clean user experience. Please note the IOTX you wish to stake must be transferred to the webtool wallet and a small gas fee in ETH is required to vote.

We will provide a step-by-step video of the voting process, as well as a comprehensive Voter’s Handbook in the coming week. Until then, be sure to participate in our upcoming Community Reward Programs to familiarize yourself with the voting process / webtool and earn points!

About IoTeX

Founded as an open-source project in 2017, IoTeX is building the world’s leading privacy-centric blockchain platform for the Internet of Things (IoT). Their mission is to build a decentralized trust fabric for a new era of collaboration and data exchange among devices, applications and people. Backed by a global team of research scientists and top engineers, IoTeX combines blockchain, trusted hardware and edge computing to realize the full potential of IoT.

Stay connected with us!

Website: https://iotex.io/
Twitter: https://twitter.com/iotex_io
Telegram Announcement Channel: https://t.me/iotexchannel
Telegram Group: https://t.me/IoTeXGroup
Medium: https://medium.com/@iotex
Reddit: https://www.reddit.com/r/IoTeX/
Join us: https://iotex.io/careers

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The Privacy-Centric Blockchain Platform for IoT