Aergo Network Voting Reward

Hunyoung Park
Nov 29 · 3 min read

Aergo takes a deflationary token model with lower fees unlike other projects giving out fees based on their inflationary model. Due to this reason, Aergo foundation decided to donate it’s own allocation to reward our voters. In this way, we hope to incentivise more participants to participate in voting.

Annual reward amounts donated by AERGO foundation are as follows:

  • 1st year: 1% of total supply (5M, 5,045,760)
  • 2nd year: 5M
  • 3rd year: TBD, (Planned 5M)
  • 4th year: TBD, (Planned 5M)

If you stake a certain amount of AERGO tokens, then you have the right to vote for a Block Producer(BP) with the same amount of staked tokens. Every voter has a certain probability of receiving a voting reward depending on the amount of AERGO staked.

However, voting reward algorithm is built to increase voter participation. The probability of getting rewarded is also based on voting power, not just on the amount of staked tokens. Voting power is determined by how often voters vote regarding system parameters that affects network overall. Those parameters includes BP elections and BP count decisions and so on. For instance, even if the staking amount is the same, a participant who votes on both the BP election and BP counts has more probability to be selected to receive a reward than a participant who only votes for BP election.

In the first year, the foundation commits to stake 50M AERGO tokens and will participate in voting to securing a stable network. The foundation will reduce total staked amount continuously.

The reward amount is calculated as 0.16 AERGO per block since the total amount for reward is fixed as 5M AERGO tokens.

Here is how a voter can receive rewards:

Expected reward amount =

Annual reward amount x Probability of getting rewarded

Let’s assume you staked 10,000(minimum) AERGO tokens and voted.

a) Total community staking(non-foundation) is less than 10M

  • If you are the only voter, 5,000,000 / 5001 = 999.8 AERGO per year (almost 10%)
  • At least, you can get 5,000,000 / 6000 = 833.3 AERGO per year (almost 8.33%)

b) Total community staking is between 10M ~ 20M

  • Foundation staking will be reduced to 40M
  • You can get reward between 5,000,000/5001 = 999.8 and 5,000,000/6000 = 833.3 AERGO

c) Total community staking is between 20M ~ 30M

  • Foundation staking will be reduced to 30M
  • You can get reward between 5,000,000/5001 = 999.8 and 5,000,000/6000 = 833.3 AERGO

d) Total community staking is between 30M ~ 40M

  • Foundation staking will be reduced to 20M
  • You can get reward between 5,000,000/5001 = 999.8 and 5,000,000/6000 = 833.3 AERGO

e) Total community staking is between 40M ~ 50M

  • Foundation staking will be reduced to 10M
  • You can get reward between 5,000,000/5001 = 999.8 and 5,000,000/6000 = 833.3 AERGO

f) Total community staking is over 50M

  • Foundation staking will not stake tokens anymore
  • At most, you can get reward 5,000,000/5000 = 1000 AERGO per year
Voting Reward according to the total amount

This is Aergo voting site. You can easily vote with Aergo Connect.

Aergo Voting Page

Aergo Connect is not only a wallet, but also your identity. The Voting page is integrated with the Aergo Connect so we assure that you can vote securely. You can find more information on Aergo connect here.

We may give similar rewards to BPs next time. Even If we decide to reward BPs, total amounts of reward will be fixed. (If the price of tokens increase, then we can reduce total amounts)

We will be releasing an additional article which will cover a detailed guide on DAO Voting and Staking.

Enterprise-ready, open-source hybrid blockchain and easy-to-use serverless cloud platform for building practical decentralized apps and business solutions.

Hunyoung Park

Written by

Aergo blog
Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade