Ontology Announces the Triones Node Incentive Model
Ontology cost model
The Ontology cost model is a crucial part of the Ontology ecosystem. The cost model cannot only significantly improve the security and robustness of the system, but also can effectively stimulate the fast development of the Ontology ecosystem.
The Ontology cost model uses a “compensation/lease” model. ONT holders periodically receive ONG and Ontology users consume gas to use blockchain services. This consumed ONG will eventually be allocated to Triones consensus nodes. All nodes will be allocated different amounts of ONG according to their contributions.
ONG unbinding model
The max supply of ONT is 1,000,000,000 and each ONT is indivisible. The max supply of the corresponding bound ONG is 1,000,000,000 and is divisible to nine decimal points. When the system begins all ONG will be in a native contract and ONG will be sent to corresponding ONT addresses. When ONT is transferred, the unbinding of ONG will be triggered, and the ONG governance contract will authorize the sender and receiver to manually extract the unbound ONG to the wallet.
The number of unbound ONG is determined by the time interval and the number of ONT held. The unbinding rule is as follows: 1 ONG is unbound every second when a block is generated, all ONG will be unbound in around 18 years, and once unbinding has finished no new ONG will be generated.
According to this unbinding curve, around 16% of ONG will be unbound in the first year, around 47% in the first four years, and around 82% in the first 12 years. This unbound ONG will be given to ONT holders based on the ONT holding ratio. ONT holders can extract ONG to their address at any time.
ONG unbinding list
ONG unbinding curve
Assuming that the user holds 10,000 ONT, according to the Ontology ONG unbinding curve equation above, the number of ONG generated is approximately 4.32 per day, 129.6 per month, and 1,576.8 per year. For specific details, please see the figure below:
Ontology cost model
The Ontology cost model includes system fees and network fees. Network fees are the basic system fees; each transaction must pay a fee when entering the transaction pool. The system fee is the fee charged for using the system’s computing resources or storage space. If the system cost is insufficient, the smart contract operation fails.
The cost model is jointly regulated by OngLimit and OngPrice. OngLimit is the marker of smart contract execution, and OngPrice is the unit price for each step. The final consumption cost of the user is determined by both OngLimit and OngPrice.
When the system network is not busy, transactions in the transaction pool are all packaged in a block, and the user can directly pay a lower GasPrice to complete the transaction. When the system network is busy the transaction pool will contain many transactions. If the block cannot package all transactions at once, the consensus node will sort the transactions according to OngPrice. Transactions with a higher unit will be prioritized to be added to the block. Lower-priced transactions will wait in the trading pool until the completion of higher-price transactions.
Network fees and system fees will be distributed to a governance contract after the transaction is complete. The governance contract will be used to uniformly distribute this portion of ONG.
Ontology node incentive model
The smallest unit of ONT is 1.
The Ontology node incentive model is the Triones Consensus System incentive model. The Triones Consensus System includes: the consensus node group, the candidate node group, and the dynamic participator node group.
· All ONT holders can participate in the stake custody/trusteeship in the Triones Consensus System governance and obtain stake incentives.
· There is a candidate network in the consensus design. According to future enhancement plans there will be support for large-scale network deployment (over 2,401 nodes).
· The Triones Consensus System can dynamically adjust the candidate network size according to the node cost and scale of business on the chain.
· According to the VBFT consensus design, the Triones Consensus System will dynamically select candidate nodes that meet certain conditions to form a consensus network and be responsible for performing consensus.
The Triones Consensus System supports setting network node thresholds. The genesis setting is 49. These network nodes will use the VBFT consensus algorithm to select nodes in the consensus network. The ratio of the consensus/candidate nodes are set according to the initial ratio of 1:6. The generation of node roles will be ranked according to the ONT amount in the stake.
In the initial stage, the Ontology Triones Consensus System will make a consensus network adjustment every 30 days according to the consensus management contract. At that time, the incentive method in the governance contract will be triggered. 50% of the total revenue will be distributed to consensus nodes and the remaining 50% will be distributed to candidate nodes. The consensus node incentive plan will be distributed according to the Ontology incentive curve equation, and the incentive scheme of the candidate node will be divided equally according to the stake proportion.
Triones Consensus System initial size and incentive plan
Ontology incentive curve
Note: A (as well as B and C) represent the compensation that can be obtained when the stake ratio achieves highest compensation. If too much ONT is used in staking, the ONG compensation will be reduced. A game design is created for the participant: enough ONT stake will allow them to join the consensus network, but too much ONT will reduce ONG rewards. Only a balanced ONT stake can receive the maximum benefit. The balance achieved by the incentive curve provides a more fair and decentralized governance participation for the entire node network. Furthermore, when there is enough on-chain business development and demand for ONT liquidity, less ONT can be required for staking and more liquidity added by adjusting the parameters of the incentive curve, whilst maintaining the same maximum ONG reward.
Triones Consensus System selection and withdrawal process
1. Node enters the process
• If an ONT holder wishes to join the Triones Consensus System, they must submit a candidate application to the Ontology Foundation.
• The Ontology Foundation will evaluate after receiving the application (see node recruitment rules for detailed information). If the applicant passes the audit, the node enters the candidate pool list. If the audit fails, no costs will be incurred.
• Nodes entering the candidate pool need at least a 100,000 ONT stake and consumes 500 ONG as a fuel cost. You can choose to entrust other ONT holder’s assets. If the node is ranked from 1st place to 7th place, the node is selected as a consensus node. Cancellation of a vote on a node cannot be made until two cycles have passed. If the node is ranked from 8th place to 49th place, the node is selected as a candidate node. Cancelling the candidate node’s stake needs only one cycle to pass.
• If the number in the candidate pool exceeds 49, the new application will not be passed until a node withdraws from the candidate pool.
2. Consensus node withdrawal
• If the consensus node requests to withdraw it can no longer continue to participate in the next round of consensus network nodes, but the current cycle of consensus first needs to finish.
• After two consensus rounds are complete, the node can withdraw, and all the vote stakes and node stakes will be returned.
3. Candidate node withdrawal
• If the candidate node applies for withdrawal, it cannot participate in being a consensus network node in the next round.
• After a consensus round is over, the node can exit, and all the vote stakes and node stakes will be returned.
4. Consensus node blacklist process
• If a node is malicious, it will be added to the blacklist. Once the node is blacklisted, it cannot continue to participate in the consensus or become the next consensus network node.
• At the end of two consensus rounds, the node will be removed, and the entrusted stake can be returned, but the node’s own staked ONT will be detained.
5. Candidate node blacklist process
• If a candidate node is added to the blacklist because of violation of the rules, once the node is blacklisted, it cannot continue to participate in the consensus or become the next consensus network node.
• At the end of the consensus rounds, the node will be removed, and the authorized stakes from other users will be returned, but the node’s own staked ONT will be detained.
6. Cancel blacklist process
• Nodes that are added to the blacklist can appeal to the administrator. If the node is approved, the node is removed from the blacklist and the staked ONT will be returned.
Consensus stake and unbinding process
Node participation and exit process
Triones Consensus System incentive example
Assuming the average transaction volume is 1,000 tps and each transaction takes about 0.001 ONG, the approximate annual revenue of the consensus node is approximately 2,697,795.071 ONG, and the annual revenue of the candidate node is approximately 458,881.3157 ONG. However, the actual situation will be determined according to the actual business volume.
If we assume that the average transaction volume reaches 5,000 tps and each transaction costs about 0.001 ONG, the estimate annual revenue of the consensus node is about 11,986,252.71 ONG and the annual revenue of candidate nodes is about 1,811,349.887 ONG.
The above examples of the Triones Consensus System incentives are only example. The actual incentive conditions need to be determined according to the specific conditions and are for reference only.