Ontology is committed to building an open-source, open-minded, and collaborative distributed trust ecosystem. This relies on the technology, applications, and governance of the entire Ontology chain network.
The governance model is core to the operation of public chains. Through long-term research and integration of Ontology’s own governance philosophy, Ontology proposes the first-generation governance model of the Ontology public chain to the community — the Ontology Triones Consensus Membership System Model.
“Triones” is the name for the seven brightest stars of the Ursa Major constellation. In Chinese it is called “Běidǒu”, which literally means “Northern Dipper”. Ancient Chinese astronomers gave the constellation this name.
1. Triones Consensus Membership System
The long-term strategy of the chain network system supports the organic combination of multiple blockchain networks. The Ontology governance model must support a combination of multiple blockchain networks based on support for a single blockchain network economic model. As a chain network system, Ontology has designed a multi-chain deployment system that will use the new architecture.
For the upcoming first main chain (referred to as “ONT main chain” hereinafter), Ontology will adopt the “Triones Consensus Membership System” architecture. This is an innovative governance model with a considered balance of decentralization, high-performance expansion, and incentives.
Triones Consensus Membership System Structure
As the provider of blockchain infrastructure, Ontology pays extra attention to the value created by blockchain. Due to blockchain’s decentralized nature, how to better manage and maintain the value of the blockchain — namely blockchain governance and incentive logic — is one of the core focuses of Ontology’s blockchain research.
Blockchain basic service incentive logic needs to consider the following factors comprehensively:
1. Node performance: The capabilities of the blockchain network are reflected in the differences in hardware performance. Hardware performance of single nodes includes network throughput, storage throughput, and computing power for certain functions (for example business transaction processing and blockchain services).
2. Node proof of stake: Node proof of stake is an important part of the node incentive plan in the VBFT consensus algorithm of the ONT main chain.
3. Incentive fairness: The consensus layer follows the Triones Incentive Curve Equation for incentive distribution, which does not use stake size as distribution criterion. It avoids stake monopoly and achieves fairness in the consensus process.
Furthermore, the Triones Consensus Membership System on the ONT main chain considers fairness of governance, network size adjustment (both expansion and contraction), flexibility of node configuration, and adjustment of the incentive plan.
The Triones Consensus Membership System divides different node networks and supports different networks to deploy different governance logic.
· Synchronous network: Synchronizes blocks and bookkeeping;
· Candidate network: Participating in consensus by meeting performance requirements;
· Consensus network: Participating in blockchain’s decentralized functions;
· Bookkeeping network. Provides consensus network support with blocks created by numerous independent nodes.
Different network sizes accommodate different numbers of network nodes. Node requirements for different networks will also gradually increase, and corresponding incentive plans can be adjusted accordingly. Network nodes can make different contributions within the overall model according to their own hardware and stake capabilities. They can also establish stake pools through smart contracts on the ONT main chain to pool together the stakes of other users.
2. Triones Consensus Membership System Governance Model
- High level of participation: Each stake holder can directly participate in governance and gain incentives (either indirectly or through single vote), regardless of the size of their stake.
- Fairer incentive distribution: Incentive distribution at the core consensus layer follows the Triones Incentive Curve Equation which gives participants with different stake sizes fair distribution. At the same time, different levels of participation in the Triones Consensus Membership System will also receive different levels of incentives.
- Naturally formed game mechanics: In the process of consensus and bookkeeping, a multi-layer game mechanism will be naturally formed, including factors such as hardware testing, stake comparison, and the highest level of incentive allocation in accordance with the Triones Incentive Curve Equation. This mechanism can further enhance the incentive fairness of the entire consensus cluster.
- Ontology trusted nodes and reputation evaluation: In addition to Ontology’s high-performance public blockchain network, the other strategic focus is creating a distributed trust collaboration platform, of which the governance model is key. Ontology uses ONT ID, a complete distributed identity framework, and a distributed reputation evaluation system to gradually form information certification on participation nodes and evaluate their reputation.
- Efficient consensus cluster screening and formation: The Triones Consensus Membership System is dynamically formed according its rules. It is neither pre-specified nor fixed long-term. Participants can partake transparently with fair rules, and can also be supervised by other nodes in the network. The formation of the overall membership system does not require a large amount of computing resources. The consumption can also be dynamically formed and adjusted within a short period.
- Effectively reaching consensus: Consensus can be achieved quickly and efficiently combined with the ONT main chain’s VBFT consensus algorithm.
- Supporting high-performance applications: Combination with the VBFT consensus algorithm can also achieve high performance and support large-scale applications.
Level of decentralization
- More distributed and diverse degree of participation: Regardless of the size of participants’ rights and interests, the Triones Consensus Membership System’s governance model can be formed in different ways and incentives allocated fairly.
- Continuous and real-time participation in governance: Triones Consensus Membership System governance provides real-time and direct participation and incentives. Instead of one-time voting, each participant can make decisions independently and dynamically.
The Triones Consensus Membership System has various sources of incentives. In its initial stage, the main incentive sources will be:
- ONT main chain network consumption:
- Network fees
- Storage fees
- Smart contract deployment and operating costs
- Other value-added service fees
- At least 1% additional incentive per year: In the first three years, the Ontology Foundation will give additional incentives of at least 1% per year to the Triones Consensus Membership System. After three years, the incentive quota will be adjusted according to the number and size of applications on Ontology.
- No additional issuance: In the initial three years, Ontology will not have any form of additional issuance, and all governance incentives will come from the operation income of the ONT main chain and incentive allocation from the Ontology Foundation.
Governance is the core of public blockchains. It not only embodies the public chain technical framework, but also reveals the philosophy and values behind each public chain. We must therefore consider factors such as fairness, distribution, and performance in governance model design. There is no perfect answer to this system, only the need for continued efforts to find the best balance point. Over the next few weeks we will continue to publish multiple design details of the Ontology governance model and discuss them with the community.
Ontology is committed to finding a better balance point in terms of consensus performance, degree of distribution, and fairness in accordance with its own technical characteristics, governance philosophy, and values. Innovative ideas and designs have already been proposed for the governance model. The research into public blockchain governance is a continuous and dynamic process, and Ontology sincerely welcomes community feedback and suggestions. We will also continue to summarize experiences from our practice, and work towards optimization of public chain governance and the realization of its values.
Thank you for your continued support,
The Ontology Team