Energy Web Token (EWT) Consortia Relay Staking Snapshots Insights
This update provides a brief overview and technical analysis of the results of the “snapshot” mechanism currently being used to track the consistency of staked Energy Web Tokens (EWT) in the Consortia staking pool. Patrons staking EWT can use the tools provided at https://consortia-stake-ewt.io/ to check the status of their wallets and snapshots if applicable.
Snapshots and Variable EWT rewards
A series of Snapshots are being taken of wallets that have staked Energy Web Tokens (EWT) in the Energy Web Consortia staking pool. The purpose of the snapshots is to measure the consistency of staking. Specifically, snapshots track how much EWT is deposited into a staking contract by a given wallet and how long that stake is maintained throughout the life of the Consortia staking pool. Since staking will be a major contributor to the cybersecurity of Energy Web solutions tied to the upcoming Consortia blockchain, having a consistent, high stake of EWT is crucial. Therefore, EWT staking pools reward consistent stakers with higher rewards compared to stakers who withdraw EWT before the staking pool ends.
In the case of the current Consortia staking pool, there will be an additional, variable reward distributed to all Patrons (individuals who have staked EWT into the pool) with at least 1 snapshot. This reward comes from redistributing all unallocated rewards from the Consortia staking smart contract. The staking contract was deployed with the maximum possible reward balance in order to provide rewards for Patrons staking a total of 7.5 million EWT for the entire 9 month duration of the staking pool.
Because the staking pool has yet to reach its capacity, not all fixed rewards will be distributed. This is where snapshots come in: the reward balance that is left unallocated will be distributed to Patrons who have snapshots. Rewards vary depending on the number of snapshots and the amount of EWT staked. For each wallet, the reward will be determined by an exponential formula taking into account the number of snapshots and average EWT stake. The exponential formula will incentivise Patrons to collect all snapshots, since a wallet with all snapshots will earn much higher rewards than wallets with 5 and less snapshots and the same EWT balance.
Similar to the timing of the snapshots, variable rewards are impossible to predict as they depend on the timing of snapshots and actions of other staking patrons. Therefore, the only rational behavior that maximizes variable APY is to stake as much EWT into a single wallet as possible and leave it staked consistently until the end of the Consortia staking pool. To be clear, the variable rewards will be distributed in addition to the fixed award already awarded by the Consortia staking pool.
Snapshot 1 Balance Analysis
In total, 6,408 wallets were included in the first snapshot. These wallets staked 5,540,589 EWT. The individual balances vary from 1 EWT (the lower limit for snapshots) to 3,000 EWT (the upper staking limit for a single wallet). The chart below shows the balances of all snapshot wallets: wallets on the horizontal axis, balances on the vertical axis.
The next chart shows the stake balance distribution with balance bounds on the horizontal axis and the number of wallets in each section on the vertical axis:
Almost 2/3rd of all wallets have balances under 500 EWT (out of which 334 are staking just 1 EWT), and 17% of wallets have balances higher than 2,500 EWT. This is surprising, as normally such distributions follow a power-law distribution (the higher the balance, the lower the number of wallets). In the case of Consortia staking, the relatively large number of wallets can be explained by Patrons holding many EWT (more than the upper limit of 3,000 EWT) staking with multiple wallets. Out of 1,110 wallets staking over 2,500 EWT, 970 are staking the maximum allowed 3,000 EWT.
Snapshot 2 Balance Analysis
Snapshot 2 was taken on block #18648235 generated on June 27th, 2022 at 9:16 PM UTC+1. This time, there were 6,641 wallets staking (up 233 from the first snapshot), staking a total of 5,730,962 EWT, so (up 190,373 EWF from snapshot 1).
Here are the balances of snapshot 2 (in orange) compared to snapshot 1 balances (in blue). Wallets on the bottom, balances on the vertical axis:
The orange spikes are wallets adding more EWT between snapshot 1 and 2. The orange dips are wallets withdrawing EWT. On the far right of the chart there is the orange line and no blue line: these are the completely new wallets that didn’t participate in snapshot 1.
In total, 880 wallets increased their EWT stake and 350 of were completely new (not staked during snapshot 1). 180 wallets decreased their stake, 117 of them withdrawing all their EWT and not qualifying for snapshot 2.
Here’s the balance distribution comparison between stake 1 and 2 balances. Bounds on the bottom, number of wallets in each category in the vertical scale:
We can see a slight increase in each category, even in the highest balances section: 41 new wallets staked between 2,500 and 3,000 ETW, out of which 40 staked the 3,000 EWT maximum. For comparison, there are now 150 additional wallets staking under 500 EWT.
Snapshot insights and what to expect next
So far, staking in the Consortia pool has been consistent in line with the design of the snapshot mechanism. This is evidenced by the balance distribution of snapshot 1 and 2 and EWT balances in the staking contract:
Such consistent staking will provide a high degree of economic cybersecurity to all enterprise-grade Energy Web solutions (for more information on the connection between consistent staking, cybersecurity, and Energy Web solutions, please review our announcement on the upcoming Consortia chain).
As mentioned above, the next 4 snapshots will be taken randomly between now and the end of the Consortia staking pool in December 2022. Patrons who receive at least 1 snapshot will qualify for additional rewards. The rewards will be calculated and distributed after the Consortia staking pool ends. Again, since variable rewards are impossible to predict, the best strategy for all patrons is to stake as high a balance as possible and do so consistently.
About Energy Web
Energy Web is a global non-profit accelerating the clean energy transition by developing open-source technology solutions for energy systems. Our enterprise-grade solutions improve coordination across complex energy markets, unlocking the full potential of clean, distributed energy resources for businesses, grid operators, and customers.
Our solutions for enterprise asset management, data exchange, and Green Proofs, our tool for registering and tracking low-carbon products, are underpinned by the Energy Web Chain, the world’s first public blockchain tailored to the energy sector. The Energy Web ecosystem comprises leading utilities, renewable energy developers, grid operators, corporate energy buyers, automotive, IoT, telecommunications leaders, and more.