Synthetic Masternodes

From Token To Miner

Imagine that we are launching one of the most exciting Blockchain products in the past 2 years (Ed: that’s hardly difficult, is it!). We will call this hypothetical mezzanine layer which runs off a smart second layer protocol a Synthchain.

A Synthchain is a Synthetic Blockchain Protocol. It is the result of a Synthetic Masternode Token being produced via an algorithm that matches exchanges and re-exchanges of a coin within a smart contract.

For this exercise we will make a synthetic masternode called Bancor Synthetic Masternode (BNM) which is manufactured when sending a BNT token to the BNM smart contract and burnt when the BNM token is sent back to the smart contract to claim a proportionate share of BNT.

The algorithm we use to manufacture new BNM is as follows:

(COIN SUBMITTED/76,201,683 BNT)*( COIN SUBMITTED)=BNM RECEIVED

and the algorithm we use to allow BNM to repurchase the underlying BNT share is as follows:

(BNM SUBMITTED/TOTAL BNM)*(COIN IN SMART CONTRACT)=BNT RETURNED

In this way, the amount of volume of coins one uses to purchase a digital note (if you don’t know what a digital note is, start here) is materially imperative to the amount of underlying coins that the purchaser holds…