Be Wary of Penalty and Select a Reliable P-Rep
You may not able to make ends meet if you voted unwisely — because of the Penalty.
The voting for ICON P-Reps has begun recently. Voting not only can select excellent nodes to help the ICON community but also help voters to get abundant rewards. For the current 70 P-Rep candidates, many ICONists may find it challenging to decide which node to vote for.
This article aims to remind ICONists of the risks of losing principal investment due to the Penalty System and help them carefully select reliable P-Reps to earn more rewards.
Recently ICON released the updated Yellow Paper IISS 2.0, and the new introduction about Penalty System, especially the “token burning component,” caused intense discussion.
The Yellow Paper states that there are three types of penalties outlined in the IISS paper: “Validation Penalty, Low Productivity Penalty, and Disqualification Penalty.”
In general, the lower the block productivity and stability, the more likely the P-Rep is to trigger the penalty system. Once the Low Productivity Penalty or a Disqualification Penalty is triggered, 6% of the votes toward such a P-Rep will be burned, which means, users voting for that P-Rep will directly lose 6% of their principal.
According to ICON’s economic incentive model, the annual return rate of voters varies from 2% to 12%, and the expected rate of return is 5.27% when the voting rate of the whole network is 30%. Once the P-Rep suffers the penalty, his voters’ income for the year would be even less than the loss of principal.
Yellow Paper IISS encourages ICONists to “Stake across multiple P-Reps to diversify the risk of having their tokens burned.”
However, it should be noted that this does not completely avoid the risk of penalty. In other words, if ICONist voted for multiple P-Reps and only one suffered the penalty, he would only lose 6% of the number of votes to this P-Rep. Losses could be reduced in this way, but still unavoidable. To avoid loss, voters should carefully select a safe and stable P-Rep. The security and the strength of the technical operation of P-Rep must be the primary consideration.
InfStones: One of the Best Choices for Professional and Reliable P-Reps
InfStones is a Silicon Valley-based technology company that specializes in cloud computing and is one of the largest service providers for blockchain cloud management. Having self-developed patents to protect key storage, InfStones can ensure redundancy while achieving node monitoring and disaster prevention 24/7. InfStones has also partnered with CertiK, one of the world’s most advanced blockchain cybersecurity companies using cutting-edge Formal Verification technology to prove hacker-resistance, to provide the most secure service.
With our top-notch technology infrastructure and outstanding node management record, InfStones stands out from all competitors for node management of every public chain’s nodes. Currently, we have over 100 nodes operating smoothly under our maintenance and surveillance. The nodes InfStones manages for EOS, TRON, VeChain, Ontology, IoteX, Loom, and other DPoS public chains are all supernodes. Additionally, InfStones has mining nodes deployed in well-known PoS public chains, including IRISnet, Cosmos, Tezos, Algorand, and IOST.
InfStones is ranked 3rd in the world amongst the best “Digital Asset Staking Providers” chosen by Staking Reward.
InfStones has a very stable and excellent node operation performance. At present, the block productivity of all of the InfStones nodes is higher than 99%.
The productivity of some public chains counts as follows:
The performance of other public chains is not shown because of the lack of publicly available productivity data. The Cosmos public chain also has a similar penalty system as ICON, and we could see that InfStones performed well. It’s convincing that InfStones has an excellent performance record in those well-known public chains mentioned above, which is also a proof of InfStones’ technical strength and security.
InfStones Provides Long-term Support for ICON Community
InfStones not only has the technical expertise to ensure high availability and security standards for P-Rep but also share experiences with the ICON team about the economic model. Through research on different PoS public-chain and DPoS public-chain economic models, InfStones has discussed and shared its experience with the ICON team, providing consulting services on the economic model, assisted ICON in improving the PoS Staking Program, and helped the network achieve greater stability.
Besides, through the operation of nodes on multiple public chains, InfStones has accumulated a large range of investor communities, including institutional investors and high net worth clients. InfStones will introduce ICON to existing customers and communities, expand the influence of ICON, and bring a diverse customer base to ICON to help it achieve greater stability.
We appreciate your vote for InfStones — one of the most professional and reliable P-Reps.