MOAC Technical Columns. “Mining Rewards Model”

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MOAC

4 min readJun 13, 2018

The MOAC system setup can be describes like this: We split the system into two parts: the lower level POW mining system which is compatible with the existing Ethereum system, allowing existinger miner easily to transfer from ETH to MOAC; the upper level is SCS node. The number of SCS could be very big. Every deployed smart contract as a subchain (SAAS) can choose participating SCS nodes and create a consensus network. The SCS nodes provide the service, and subsequently are rewarded.

MOAC’s two-level mining system has more profund considerations. The Ethereum and Bitcoin distribution systems are one-dimensional, relying only on POW to mine. However, POW’s is a high-cost operation, average participants don’t have any method to earn token except for second-level market currency trading of ETH or BTC. Whether it’s the processing fee for Bitcoin or the gas fee for ETH, it is the only redistribution method in the system.

MOAC proposes a two-level mining system, which specifically provides a secondary redistribution method to upper-level participants. This means that subchain deployers need to continuously pay MOAC to participating SCS nodes to maintain the subchain’s normal operation. This is different than Ethereum’s deploy-once-and-use-forever policy. Ethereum relies on users to pay gas fees to miners in order to execute the contract. MOAC has the creators of the contract or the community pay the contract maintenance costs. And the cost of participating in the mining of SCS nodes is extremely low, requiring only a specified MOAC deposit, which reduced the entry barrier for upper-layer miners.

MOAC is the default payment method for subchains. Subchain creators can set the time interval for block generation, as well as the reward for each block. These rewards are paid by the creators. MOAC provides a dynamic management system which allows the SCS nodes to generate revenue even when the value of the MOAC currency itself fluctuates, minimizing the burden on subchain creators.

If the MOAC market value changes:

If the value drops, the reward will not be enough to pay for the electricity, which will decrease the revenue of SCS. SCS may experience a decrease in performance, and may not provide normal service to subchains. If the decrease is great enough, it may be necessary to manually add additional SCS node.

However, doing so will incur a large overhead. A better way to handle this situation in relation to subchain creators/maintainers is to increase the number of rewards. It should be kept in mind that the number of subchain rewards can only be increased to prevent subchain creators from intentionally reducing rewards.

MOAC increases the auto-deflation of rewards. That is, after each flush cycle, the block reward is reduced by a certain percentage, releasing the burden of rising MOAC price on subchain creators/maintaners.

If the value remains stable, subchain creators/maintainers can counteract the effect of deflation [MW1] by increasing the reward on a regular basis.

In summary, as reward automatically decreases (to match MOAC’s anticipated inflation); and subchain creators increase rewards (to match situations where MOAC deflates and SCS profits are too low).

In addition, after subchain contract deployment of the MOAC system, users can (not including SCS nodes) use the direct call function to call contract function without using gas. Bear in mind:

Dapp users don’t need to understand the MOAC system, or even accquire any MOAC token to use Dapp. Users can interact directly with Dapp without having gone through the cryptocurrency or contract call learning curve.

When gas is not in the loop, users’ direct call don’t need a lower-level balance transfer transaction, greatly reducing transaction pressure on the lower level.

Users can still obtain tokens in subchain (contracts) to satisfy relevant business logic.

Remuneration and Penalty Flow