Main Net Tokenomics
Hey SOUL masters!
Today is the day of the long awaited announcements! The team is very aware of the community’s eagerness for news from Phantasma, especially since recent developments in our GitHub were identified. We appreciate your patience. Over the past few months, our team has put considerable effort into revising the Phantasma blockchain tokenomics model. We have conceived what we feel is a near perfect solution that will benefit token holders, Phantasma users and developers whilst facilitating growth of the ecosystem and mass adoption. We have kept communication somewhat subdued whilst being laser focussed on the development and testing effort required to deliver this tokenomics model. Now we’ve achieved a level of technical confidence, we are very excited to share with you all the final details on how it will be structured and work. This is the day you have all been waiting for!
Is your soul ready?
With a new blockchain comes new information regarding the specifics & features of its blockchain. Since we are building Phantasma Chain from scratch, we can look at the legacy blockchains such as NEO, Ethereum & EOS and improve where improvements would be necessary and implement new features.
Phantasma Consensus: PoS+
Phantasma Chain is adopting a variant of PoS, where it requires users to put a stake in the network to become a validator (block producer). As a reward for their contribution as a block producer, each block producer receives a share of the transaction fees. The block producers use a rotational scheduling per side-chain to define who the active block producer is. This process occurs in parallel for each side chain, which will allow for horizontal scaling to boost the theoretical TPS of Phantasma Chain. Each block producer is responsible for accepting transactions from Phantasma users, verifying signatures & transaction contents. Once the transaction is accepted, the block producer adds it to the next block.
The first problem to solve is scalability. Phantasma aims for global adoption by bringing all different blockchains into one single ecosystem, therefore we have to make sure our chain is solid, easy to use and scalable. Phantasma Chain will allow infinite side chains to be deployed. Every dApp on Phantasma Chain will run on its own side chain independently from all other side chains. This removes the risks that one single dApp could shut down the whole network whenever it is being spammed.
Our Testnet has been live since November, we are proud to share some Testnet results. Our blockchain can achieve 5K TPS with an average block time of 2 seconds. This results in a block size of 10K transactions per block. These results are achieved in and applies to the main chain, this means that every side chain will be able to achieve 5K TPS independently from all the other chains. As a result, the total TPS of Phantasma Chain in theory is the amount of side chains multiplied by the maximum TPS of 5K. Infinite side chains coupled with the inter-chain technology Phantasma implements into its network will allow for all chains to be connected, which will give developers the power they need to build revolutionary dApps with the supported languages C#, Java, Solidity and Python.
One of the features of Phantasma is the ability to send transactions anonymously, which will cost more transfer fees than a regular transaction and run on its own side chain. We call this feature Ghost Mode. Ghost mode is automatically implemented into the Phantasma App and Phantasma’s Soulink.
Phantasma Name Service
Most blockchains still relies on a public address for a person to send or receive coins/tokens.
Some blockchains integrated a protocol to allow users to use a specific username instead of their public address to send and receive coins/tokens. As Phantasma aims for to make everything on the blockchain much easier for the users, Phantasma will support this feature from the first day of main net launch.
Non-Fungible Tokens (NFT)
NFTs are the new technology in blockchain in which we believe that it might be the forefront of global adoption. NFTs could potentially be the driving force to digitize the economy. Hence the reason why Phantasma is focussing on NFTs and its application. There are a lot of unforseen possibilities with for these kind of tokens. With our very own NFT Marketplace to support NFTs from all other blockchains, Phantasma aims to be at the forefront of this adoption.
Dual Token System: Phantasma Energy
For ease of use and adoption it is not efficient and realistic to pay a small fee in SOUL for every transaction. Phantasma Chain introduces a Dual Token System called Phantasma Energy with the ticker KCAL. Energy (KCAL) is the network resource token of Phantasma Chain which will be used upon transaction as transaction fees.
Everybody who stakes SOUL will immediately start receiving Energy, distributed to a public Phantasma address by choice, therefore it is not possible to receive Energy just by holding SOUL in your wallet, staking is required. By receiving Energy right after staking SOUL, you can start using the Phantasma App right away and by distributing the Energy to a wallet of your choice you can introduce your friends and relatives to Phantasma’s Ecosystem by staking SOUL for them.
The staked SOUL & generated Energy are locked in the specific wallet for 24 hours, after which you can transfer the SOUL back to your wallet or keep staking the SOUL for more Energy. Energy is unlocked after 24 hours, however you can still use the Energy for transaction fees within the first 24 hours. Automatic conversions between Energy and SOUL is supported later down the line with Phantasma’s very own DEX.
Energy: Supply & Stats
Now you should know what Phantasma Energy is. But how much will you receive by staking SOUL? We have evaluated some options and chose a distribution model that made sense to us. The average transaction costs on Phantasma Chain is approximately 0.01 Energy per transaction, therefor 1 SOUL will generate 0.002 Energy per day. The minimum amount of SOUL to be staked to receive Energy is 1 SOUL.
The maximum supply of Energy is 320,000,000 KCAL in which the release of Energy will halve every two years.
Main Net Tokenomics
Due to burning of the bonus tokens during the private sale, the maximum supply of SOUL is currently 91,136,374 SOUL tokens. We are going to increase the maximum supply back to 100,000,000 SOUL for Phantasma’s main net. These extra 8,863,626 SOUL tokens are locked and will solely be used to improve the ecosystem of Phantasma by incentivizing developers (Phantom Force) to build dApps on Phantasma Chain and reward SOUL Masters who stake a sufficient amount of SOUL. The extra tokens are never to be used by Phantasma to fund anything other than the Phantom Force, the Phantasma Cosmic Swaps and to reward SOUL Masters.
- 6,000,000 SOUL allocated for the SOUL Masters pool.
- 1,000,000 SOUL allocated for the Phantasma Cosmis Swaps pool
- 1,863,626 SOUL allocated to fund the Phantom Force Foundation.
More information regarding the SOUL Masters and Phantom Force in this article.
Furthermore, to sustain the improvement of Phantasma’s Ecosystem for years to come, we will introduce an inflation added to the maximum supply of 100,000,000 SOUL. Once again, the inflation is solely to be used to maintain the best quality of the ecosystem and to sustain incentivization of developers to build dApps on Phantasma Chain. The yearly inflation is coded to be 3%:
- 2% (two-third) allocated to block producers
- 1% (one-third) allocated to the Phantom Force Foundation
We believe that in order to build the best ecosystem, it is important to have good incentivization for the developers who contribute their fair share. As you can see, Phantasma is very serious in rewarding the people who contribute to Phantasma’s Network and Ecosystem. Without our inflation model, it would not be sustainable to reward the contributors for years to come. The inflation model is an excellent way to attract developers (and keep them) and to maintain high quality of the block producers, which will be beneficial for the growth of Phantasma.
With the introduction of Phantasma Energy it is not necessary to do the token swap from NEP5 to Phantasma’s own main net during the launch: it is possible to have both the NEP5 token and the main net coin simultaneously. The Phantasma team is constantly listening to community feedback. Switcheo appears to be one of the community favorite exchanges to buy SOUL. To maintain the listing of SOUL on Switcheo we have decided to postpone the token swap and do it in stages (more information in the future). Another huge benefit of this new approach is the quick listing of SOUL on our partner exchange Nash, since there won’t be an obligatory token swap. All SOUL pairs on current exchanges will remain to be the NEP5 SOUL token which is deployed on the NEO blockchain.
Instead of the obligatory token swap, there will be an optional token swap from NEP5 tokens to Phantasma’s SOUL coin to stake on the network. All the Phantasma SOUL coins are initially locked. They get unlocked on a 1:1 ratio whenever somebody makes the token swap, as a result the SOUL from the NEO blockchain gets locked upon the swap. This means that the max supply of both SOULs on the NEOs and Phantasma’s blockchain is a combined amount of 91,136,374 SOUL.
(SOUL tokens can be changed back and forth between NEO and Main Net during this year of 2019)
Phantasma Chain will have block producers (BP) instead of masternodes. The amount of BPs is based on the amount of side chains & transactions. There will be 10 active BP + 150% standby BPs (internal testing has indicated that an initial 10 active BPs is the ideal number, but this is subject to change, and might become variable). Once the number of transactions increases and the network requires more block producers verifying transactions, SOUL Masters are promoted based on a lottery system to have a sufficient amount of BPs.
All active BPs will rotate over all chains, which results that all active BPs will continuously produce a block for every chain. Every BP can also verify multiple chains at the same time.
At the end of every quarter there will be a voting window for people to vote on BPs to become (or remain) an active BP to make sure that the network remains decentralized.
Requirements & Rewards
BPs have to meet all requirements to become a BP and to remain a BP. After a significant amount of time being inactive, the active BP will lose the active BP status. Once a new spot opens in the BPs pool (active BP falls out or a new side chain gets deployed), the current standby BP with the most votes will be promoted to the active BP status.
BPs will receive two-thirds (2%) of the yearly inflation of 3%. The 2% is to be divided into 4 quarters: 0.5% is to be allocated to the BPs pool every quarter.
Active block producers receive:
- 75% of the BPs pool
- rewards divided proportionally to the voting ratio
- 50% of Energy fees
- 100% of Main Chain fees
- 100% of Ghost Chain fees
Standby block producers receive:
- 25% of the BPs pool
- rewards divided proportionally to the voting ratio
*All BPs are SOUL Masters and will receive the SOUL Master rewards.
Everybody will be able to vote on BPs for the active BP status by staking SOUL. The voting occurs every quarter with a defined period of voting submissions.
- X SOUL staked = sqrt(X) voting power
- voting possible only through Phantasma App
- possible to vote for multiple BPs
- quadratic voting: voting power equals square root of total staked SOUL during conclusion of voting period
Based on the square roots as voting power, there is a voting dilution. e.g. whenever you stake 10,000 SOUL to vote for a single BP, your voting power is 100. Whenever you decide to vote for ten different BPs, your total voting power is 10 times 31 = 310.
Not everybody can become a BP of Phantasma Chain, as the maximum amount of BPs is limited proportionally to the average transactions being submitted to the blockchain. We know that many people have been accumulating the magic number of 50,000 SOUL to be able to run a masternode. To prevent disappointment and simultaneously reward the people who have accumulated the magic number of 50,000 SOUL, there will be an additional staking model besides the BPs and Energy staking.
Everybody who has accumulated 50,000 SOUL can become a SOUL Master by staking 50,000 SOUL, SOUL has to be remained staked for the Soul Master status. A total of 125,000 SOUL is to be distributed monthly & equally over all SOUL Masters for a total of 4 years. This sums the 6,000,000 SOUL allocated for the SOUL Masters pool. The SOUL has to be staked before the month starts to receive the rewards for that specific month. e.g. a person is eligible for the February rewards if that person stakes 50,000 SOUL between January 1st and January 31st. One will not be eligible for February rewards if that person stakes the SOUL between February 1st and February 28 (29th for leap years).
There are no benefits in staking more than 50,000 SOUL in one single wallet, as a result it is possible to become a SOUL Master multiple times by spreading your SOUL over multiple wallets.
SOUL Masters are automatically eligible for the BP lottery whenever a new spot opens for the BP groups and will be added if:
- Accept invitation within the given time frame after receiving
- Meet requirements to become BP (setup everything to become BP)
- After meeting requirements, SOUL Master added to Standby BP group
The Phantom Force is an independent group of open source developers and other contributors who wish to contribute and build the best user experience & ecosystem on Phantasma Chain and App. The Phantom Force is the driving force of Phantasma Chain.
As previously mentioned: the Phantom Force will be funded by the initial supply increase to a maximum of 100,000,000 SOUL and by the yearly inflation of 3%. The SOUL coins distributed to the Phantom Force will be used to fund the developers & contributors of the Phantom Force and to fund prize pools of dApp competitions. Yes, there will be dApp building competitions in the future with SOUL prize pools!
Another use case of the allocated tokens are the kickstarters on Phantasma Chain. If there are specific dApps the Phantom Force members wants to build, they can present them to the community through the kickstarters program. Phantasma users can actually vote on the dApps, based on the amount of SOUL the user has staked, so that the dApps will get funded proportionally to the amount of votes received. This way the community is able to curate the dApps built by the Phantom Force.
With the new model there will be two different ways to receive funding through the Phantom Force: one is the dApp competitions and the other is the kickstarters. The dApp competitions is hosted for the developers who have already built an MVP, while the kickstarter is for developers who have good ideas but need the funding to realize their ideas. The yearly inflation makes this all possible and plays a crucial incentivization role to improve the ecosystem of Phantasma Chain.
If you wish to become a member of the Phantom Force, please contact one of the team members of Phantasma (Sergio, Alex, Lee Kai) or send an email to firstname.lastname@example.org with the subject ‘’Phantom Force’’ with your background experiences or join the official Discord Channel.
Cosmic swaps is a liquidity framework for decentralized exchanges on Phantasma. Developer can build their own exchange frontend and marketing, while the backend is connected directly with Phantasma which allows sharing of liquidity, orders and pairs with every exchange using the system. You will not have to worry anymore about liquidity and token listings once you use the Cosmic Swaps.
Stable Coin: Phantasma Gold
eCommerce plays a major role in Phantasma’s success. To remove volatility risks for 3rd parties who are using all different kind of Phantasma market places to sell their content, Phantasma will issue a new stable coin: Phantasma Gold. In the back-end, all in-app purchases are in dollars (Gold).
Remember that Phantasma’s goal is to build the one-stop ecosystem on the blockchain with ease of use for its users. Use the supported coins in Phantasma App (e.g. initially BTC/ETH/SOUL, more supported coins and FIAT to be added later) to make purchases or transactions which will then be converted into a combination of stable coins which will be converted into Gold. This loop all happens in the back-end, for the user it means that they are just buying their purchase with their initial choice of payment (BTC/ETH/SOUL). Whenever there is not a sufficient amount of liquidity in one of the pairs with any of the available stable coins, a message will appear for payment in any of the other supported coins. e.g. a user wants to pay with SOUL, but there is not enough liquidity to convert into the default stable coin: a pop-up appears with the message if the user wants to pay with BTC/ETH instead.
*Phantasma will always have 1 Stable Coin in reserve for any 1 Gold that has been generated during a transfer.
Phantasma Storage allows users to upload files to the Phantasma network, which is similar to Google Drives. However, Google stores their data within their own centralized systems, while Phantasma Storage allows a fully distributed and therefore decentralized storage network. The files can be read by smart contracts, which unlocks a new method of storing and accessing the files within the storage network that no blockchain can provide up until Phantasma Chain.
Summary and Surprise!
When we set the deadline for our main net earlier this year we did not factor in those big changes to the blockchain. We could have already launched our blockchain in February with the initial tokenomics (without staking, voting, without the Dual Token System etc). Therefore we hope you understand that all these changes benefit Phantasma in the long run significantly more than the initial tokenomics which we improved upon. As a result of all the changes, the main net will be launched at the start of Q2: April 2019. We apologize for this slight delay, significant due diligence has been applied to this release as we accept nothing less than an excellent level of quality from ourselves.
That concludes all the details we wanted to share regarding our upcoming Phantasma Main Network. We hope you understand that all changes were essential to the sustained growth of Phantasma’s Ecosystem for years to come. We also hope that you appreciate that additional development effort and time is needed to implement said changes. We are looking forward to your feedback and responses during the final weeks as we count down to the launch of our purpose built main network. The Phantasma team also has a very exciting surprise we will be able to share with you very soon. We are very much looking forward to broadcasting that! Stay tuned!
Forget the crypto forecaster, become a SOUL Master!
For more information about Phantasma Chain:
Telegram Channel: https://t.me/phantasma_io
Telegram Announement Channel: https://t.me/phantasma_announcements