Strengthening Ontology’s Governance and Staking Economic Model
Ontology is committed to enhancing our ecosystem and, as part of our efforts to improve our governance and staking model, last month, on May 9, 10,000 ONG rewards were put up for all Ontology community members to vote and submit their suggestions.
We have been blown away by how active our community has been involved in this. We received more than 6,000 votes and important feedback.
We value this and will continue to maintain a sustainable, healthy, and stable ecosystem.
Community Suggestions on Improving the Ontology Governance and Economic Model
Based on the community votes and suggestions, we will start a vote amongst all Triones nodes on whether to put the following suggestions into practice, in a bid to further improve our governance and economic model. If the proposals are passed, changes will be made during the Ontology MainNet upgrade and become effective on July 7, 2020.
1) Lower the minimum requirements for staking to 1 ONT (The current minimum is 500 ONT) and shorten the withdrawal period within 5 days
This change will lower the requirements for users to stake from 500 ONT to 1 ONT thus allowing more stakers to participate in the staking and earn ONG rewards. Over 118k addresses that hold between 1 ONT and 500 ONT will now be able to participate in the staking. The minimum requirements for consensus nodes will now be 1,500,000 ONT.
The withdrawal period (which can take up to 2 consensus rounds) is dependent on the block production speed. A consensus round at the current block production speed takes less than 7 days. The more transactions occurring on the Ontology blockchain, the shorter the consensus rounds last. Therefore, with enough of an increase of the average number of transactions occurring per second, the consensus rounds will be short enough that the withdrawal period should on average end up being less than 5 days.
2) Add more fee consumption scenarios to improve the whole network’s average transactions per second (TPS) and increase the gas fee per transaction to 0.05 ONG
Ontology will launch common knowledge graph crowdsourcing services and attestation services such as OpenKG and OGQ on the Ontology blockchain shortly. We expect the average number of transactions on the blockchain to increase significantly. Therefore, we will likely see the whole network’s TPS increase from 0.1 TPS to 10 TPS.
By design, the gas fees shall cover the costs of operating a node and bring profits to the Triones nodes. There needs to be a certain balance between TPS and the gas fee per transaction. In order to generate more fees from transactions, we will raise the transaction fee from 0.01 ONG to 0.05 ONG, which will generate approximately 15,768,000 ONG in transaction fees per year, when the average TPS is 10.
The table below provides more details on how the changes in average TPS and transaction fees will determine the total amount of transaction fees generated from transactions annually.
3) Increase the rewards for governance vote (Ontology Triones nodes)
OWallet version 0.9.20 added support for the Ontology community governance voting, allowing candidate nodes and consensus nodes on the Ontology network to submit or vote on Ontology-related proposals. The Ontology Foundation will use the ONG rewards generated from its own staking activities to reward valid proposals that are accepted and implemented after a governance vote by all Triones nodes.
4) Cancel the current ONG unbinding model and combine it with staking with a new releasing curve
The current ONG unbinding model will be canceled, and users can earn ONG rewards via staking. The annual ONG releasing speed per block will follow a new releasing curve and witness a significant decline from Year 3 onwards. Currently, 4 ONG are released per block. After the change, the amount of ONG released per block will be reduced to 1 ONG per block. We expect the network staking rate may increase to 60% and the stock-to-flow will go up close to Bitcoin. It will act as an Ontology-style halving.
Block Time: 1 Second
According to the rules, community members who voted (at least 1 vote) and submitted valid suggestions before May 31 will be rewarded with 500 ONG. Please stay tuned for the rewards distribution announcement.
These improvements in the Ontology governance and staking model will lower the requirements for users to participate in Ontology governance, and encourage more users to participate in ONT staking to earn ONG rewards. We will also simplify the node application process and add an “ONT to ONG” instant swap on ONTO soon.
Please email us if you have any questions regarding the changes at contact@ont.io, or post in our Telegram. We look forward to building a better and more prosperous Ontology ecosystem with our community and are grateful for all your support.
Find Ontology elsewhere
Ontology website / ONTO website / OWallet (GitHub)
Twitter / Reddit / Facebook / LinkedIn / YouTube / NaverBlog / Forklog
