After receiving feedback from our dear community, we discussed potential changes to the Phantasma Energy model. The current model is lacking one major attribute: token velocity. We agreed to rework the Phantasma Energy model to stimulate and improve the token velocity of KCAL. We call the reworked model the ‘’Sustainable Energy System (SES)’’. The major changes are burning of KCAL, gamification of KCAL and a leaderboard to stimulate participation in this system. An important detail to mention is that this system is self-sustainable. The smart contract decides how much the Energy distribution is per 1 SOUL. This means that we have removed the bi-yearly halving of Phantasma Energy (KCAL).
Every transaction will allocate 50% of transaction fees to a special pool (Energy Bomb), while 25% go to Block Producers (BPs) and the other 25% goes towards dApps. Almost all Energy in the Energy Bomb shall eventually be burned at the end of every quarter (season), parallel to whenever the BPs voting occurs.
The Energy Bomb is used to beat a mysterious evil villain, who dislikes Souldiers. Here is where the Phantasma community comes into play. Besides burning of transaction fees, Phantasma users are able to contribute Energy directly into the Energy Bomb to make it grow and be big enough to beat the evil villain. The Energy Bomb is big enough once it surpasses 50% of the circulating Energy supply, in which the Energy distribution will double at the end of every season. If the Energy Bomb is smaller than 50% of the circulating Energy supply, the evil villain will perform ‘’The Snap’’ and halve the Energy distribution. Either way, the Energy Bomb will be used to fight the evil villain, as a result the Energy shall be burned at the end of every season.
e.g. The base of KCAL distribution is 0.002 KCAL per 1 SOUL per 1 day. If the evil villain performs ‘’The Snap’’, the Energy distribution will reduce from 0.002 KCAL to 0.001 KCAL per 1 SOUL per day. If the evil villain is stopped by the Energy Bomb (thank you Souldiers), the Energy distribution will double from 0.002 KCAL to 0.004 KCAL per 1 SOUL per day. There is no limit to how high or how low the distribution rate could go, so it is our quest to stop the evil villain before it snaps and removes half of the Energy distribution.
Users can keep track of the amount of Energy every BP has contributed to the Energy Bomb. This system incentivizes BPs to contribute Energy to the Energy Bomb to benefit the Phantasma community by potentially increasing of Energy distribution, to gather more votes. There will be a dedicated website in the future to check the progress of the Energy Bomb growth. If the BPs are not willing to combine strength to defeat the evil villain, which will cause the Energy distribution to halve… Souldiers might vote for other BPs.
Besides the progress of the Energy Bomb on the dedicated website, there will be two leaderboards of the top contributors to the Energy Bomb (for non-BPs): a seasonal and an all-time leaderboard. The top 100 of the seasonal leaderboard (excluding BPs) receive points according to their ranks. After the season concludes, the points will be added to the all-time leaderboard (cumulative). Whenever a standby BP spots opens, the top of the all-time leaderboard will earn a promotion to standby BP, upon this promotion it loses all the points accumulated in the all-time leaderboard.
The points rewarded per wallet is based on the distribution ratio of KCAL:SOUL in that specific season. e.g. the points rewarded in a specific season is double the base points if the distribution ratio of KCAL:SOUL is 0.004:1 (villain lost) instead of 0.002:1 (base). Same rule applies to whenever the ratio is 0.001:1 (villain won) instead of 0.002:1 (base), the points to be earned is halved.
This leaderboard improves the use case of Energy and benefits all scales: people who don’t want to become a BP can swap their KCAL for SOUL, since people who do want to become a BP want to accumulate more KCAL to contribute to the Energy Bomb. The liquidity of the built-in swapping feature between SOUL & KCAL is improved. You play the game or you don’t: either way your Energy is valuable to yourself, or anybody else.
Fun fact: significantly less amount of time necessary for coding with this new leaderboard.
Since SES is self-sustainable, we can remove the bi-yearly halving of the Energy distribution. Energy is the network resource token of Phantasma Chain, it is used to pay for transaction fees. SES improves the token velocity of KCAL to be used in the network. By introducing the Energy Bomb which will burn 100% of the Energy it contains at the end of every season, the total supply will decrease at the end of every season. Therefore, there will not be a maximum Energy supply anymore. The Energy distribution will be determined by the burn rate in proportion to the total Energy supply, it’s self-sustainable and as the ecosystem grows, more transactions will be processed, which results in more token burning.
On a sidenote: we are excited to see the dApps which are being built for the dApp competition to share 100K SOUL, 100K KCAL & 3 Block Producer spots.
Team Phantasma would like to thank all Souldiers with the overwhelming support and feedback we have received. We are always listening, adapting and discussing within the team. We will do whatever is needed to build a robust blockchain & ecosystem. Improving the network resource token Phantasma Energy is something what we thought was necessary after receiving your feedback. We believe that SES has a lot of benefits compared to the old model. United we shall be victorious, united we shall defeat the mysterious evil villain. Who could it be?
For more information about Phantasma Chain:
Telegram Channel: https://t.me/phantasma_io
Telegram Announement Channel: https://t.me/phantasma_announcements