About life-cycle phases of the Busy decentralized blockchain-based freelance platform
In my previous article, I wrote generally about the Busy platform and I mentioned that the platform will be ready for millions of people with its life-cycle phases — and that is correct! I would like to describe how is it going to work.
There will be configured a limit of slots on the platform for each life-cycle phase, but let’s start from the beginning.
Limit of slots
A slot limit is a term that will refer to space on the platform, which will be expressed by the sum of the sizes of all slots. The size of the slots will be limited and can increase or decrease according to the number of staking addresses. With this enlargement and reduction, the platform will not be able to ensure the size of new or existing slots in the longer term. However, the larger the slot, the higher it will be displayed among the other offers, and at the same time, thanks to its size, it will be seen better.
Because there will be only a limited number of slots on the platform, the supply will decrease with the decreasing number of free slots, which can increase the price of the slot tethered coins, assuming the same demand.
These rising prices of slots and tethered coins can economically motivate low-quality advertisers to withdraw from staking, sell their coins and free up space on the platform to more qualified advertisers.
If the space designated for the slots will be 100% saturated, the platform and blockchain will automatically move to the next life-cycle phase.
For Busy technology to achieve decentralized behavior and apply the inflationary/deflationary model, the platform and blockchain must have mechanisms in place that will work in both parts at the same time and must be considered in the initial phase of development.
As the number of slots on the platform will be limited, they will fill up over time, making it impossible for new and existing users to fill new slots or expand existing slots.
The whole system will automatically respond to this by moving to the next life-cycle phase, where the number of existing slots on the platform will be doubled (x 2) and at the same time, the staking limit will be reduced by 50% (/ 2).
Each user will have a “new” slot available for free, which they will be able to fill with half the coins than in the previous phase (since the staking limit has been reduced by 50%), and this will tend some quality advertisers to sell their coins from staking addresses. The sale of the coins will free up space for better and stronger quality bidders, who, on the other hand, will expand their place on the platform, bringing the quality offer to the forefront and the low-quality one moves lower and downward in a natural and nonviolent way based on real economic motivation.
The whole system will have a certain number of development phases defined when, for example, in phase 9 there will be a total of 7.68 million slots on the platform, the limit for staking will be 3.90625 and the approximate value of the coin will be $25.6*. The first phase will be named “Phase 1”, the second phase “Phase 2”, etc.
The transition of the phases
The transition to the next life-cycle phase will be performed automatically as soon as the total number of slots on the platform will be occupied, where the given number will be predefined both on the platform and in the blockchain. It is with the transition to the next life-cycle phase that there will be two automatic activities and one activity that can be performed by the user:
- The number of slots on the platform will be doubled (x 2).
- The staking limit will be reduced by 50% (/ 2).
- The user gets the opportunity to double their slot size for free using existing coins in staking (compared to the inactive user).
For the user to benefit from the transition to the next life-cycle phase, his action will be required. Since the staking limit will be reduced by 50%, the user will only need to have half of the coins in the current staking addresses for the slot to be displayed and to obtain a staking reward. Once the automatic transition will occur, the value of the coins in the staking addresses will not change automatically for the user, but his interaction will be required. The user will have to manually redistribute the coins from the original staking addresses to the new staking addresses to achieve the staking limit, thus gaining an advantage over inactive users who do not act.
- Will receive a larger slot (x 2) compared to the inactive users.
- Will receive a bigger staking reward (x 2) compared to the inactive users.
Example of transition to life-cycle phase 2
For this example, consider the following parameters: staking limit 1,000 and 1 staking address with 1,000 coins (referred to as SA).
- Limit for staking = 1,000; 1 x SA with 1,000 coins.
- The user has a slot of size “1” = has just one staking address meeting the limit.
- The user obtains a staking reward of 330 coins = he has just one staking address meeting the limit, therefore 33% of 1,000 coins = 330 coins.
Phase 2 — no action
- Limit for staking = 500; 1x SA with 1,000 coins.
- The user still has a slot of size “1” = he still has only one staking address meeting the limit of 500.
- The user receives a staking reward of 165 coins = he still has only one staking address meeting the limit, but since the limit has been reduced by 50%, a reward of 33% is calculated only from 500 coins, i.e., 165 coins.
- Result: Unrealized staking reward from 500 coins in SA + reduction of the slot position compared to the users who did the action.
Phase 2 — action performed
- Limit for staking = 500; 2 x SA, 500 coins each.
- The user has a multislot of size “2” = now he has two staking addresses, which meet the staking limit 500.
- The user has maintained a staking reward of 330 coins = he has now two staking addresses meeting the limit, but since he transferred the 500 coins from the original to the new staking address, a reward of 2 x 33% of 500 coins is calculated, i.e., 330 coins.
- Result: 2x bigger staking reward and 2x larger slot compared to users who did not act.
Taking into account the preceding paragraphs and the comparison table above, the principle of “eliminating” inactive users is clear now, isn’t it?
If the user will not act, he will still have the same slot size as before (but lose 50% of the size compared to the others who acted) and the staking reward will be reduced by 50%. This will move the slot to a lower position and make it less visible. The example above was used for its simplicity with only one staking address, however, with the analogy that the user will have 8 staking addresses and transition to the next phase, we are already talking about more significant impacts:
slot size from size “8” to “16”. And in case of non-action, loss of 50% staking reward (from the original “2,640” coins to “1,320” coins).
The inactive user will continue to receive staking reward, but since the staking limit will be reduced by 50%, he will also receive only 50% of the value from staking. This will not in any way affect the original balance of the coins on the account
the user will not lose his coins, only the future reward will be reduced.
Over time, this will almost completely eliminate the inactive users, both in terms of visibility on the platform and in terms of receiving a staking reward. The inactive user will not be beneficial to the ecosystem and will therefore not be rewarded.
On the other side, if the inactive user will become active again, he will have the possibility to receive his full position on the platform.
This quite technical topic is the main mechanism to have the decentralized freelance platform, where its ecosystem (e.g., users) will naturally eliminate the spam and low-quality offers. As I really like to write in technical words, I will write about the Busy blockchain next time, it will be even more far-beyond basic mathematics. Stay tuned!
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