Introducing IPX Staking System

Published in

Tachyon Protocol

7 min readMay 26, 2020

We first introduced Tachyon VPN in March 2020 and have since reached over 350,000 global users. The continual growth of our network has only become possible with the overwhelming support and demand from the community. Today we’re pleased to introduce the IPX Staking System, and how we’re going to expand our global node network with a better than expected reward model.

What is IPX Staking System?

Tachyon is building a global bandwidth marketplace — Here in the Tachyon network, Node Providers are able to earn rewards by staking and selling bandwidth to global users via the IPX Staking System.

IPX Staking System is self-governed by all of its participants, and can ensure a stable supply of bandwidth for Tachyon VPN.

Features

Unique Staking Model -Providing Node Incentives that is composed of Session Rewards and Staking Rewards.
No technical skills needed -Everyone can join and earn rewards easily.
V Systems’ cold minting technology — Participate in staking with the tokens remaining in the owner’s wallet.
Compound interest. Your interest can generate interest.
A daily basis rewards distribution.

Node Incentives

Conventional blockchain networks reward participants to contribute to network security through mining or staking. However, Tachyon is taking one step further to promote involvement through giving Node Incentives to participants who provide VPN service on Tachyon VPN.

Apart from regular staking rewards generated from the system, Node Incentives also include variable session rewards based on the contribution made to the core system. The more VPN traffic you provide, the more session rewards the Node Provider can get. This allows token holders to take a more active part in the operation of the network.

We can break the Node Incentives down into two pieces: Session Reward and Staking Rewards. All rewards are designed to be distributed to Node Providers on a daily basis.

Session Rewards

the variable reward from selling bandwidth to global VPN users.

Node Providers are paid Session Rewards directly by users.
Session Rewards are likely to be the bulk of Node Provider income.
Session Rewards vary based on:

Session pricing (determined by Node Operator)
Demand for VPN Services
Network coverage and capacity at your node’s data center

Session rewards are paid per 5-megabyte session. The price of each session is set by the node operator to be competitive in the marketplace. The more users connect to your nodes, the more session rewards you will earn.

4. How to calculate your session rewards?

Since IPX Staking System hasn’t been integrated into Tachyon VPN yet, Session Rewards will be calculated by this formula and distributed by Tachyon temporarily during the global testing period.

* 1 Session = 5 MB block of traffic.

* P_A(x) = The average price of your sessions that day.

* x = The total sessions of your nodes that day.

* P_A(m) = The average price of all sessions in the system that day.

* m = The total sessions in the system that day.

* This session Rewards formula is only applicable during the test period.

Once IPX Staking System is added into Tachyon VPN, the calculation will be as follows:

Session Rewards = P_A(x) * x

* P_A(x) = The average price of your sessions.

* n = The total sessions from your nodes that day.

Staking Rewards

A 5% regular reward generated by the system.

Staking rewards provide all participants with reliable income and provide the Tachyon network with additional security.

1. Staking rewards can be automatically re-staked, creating a compounding benefit.

2. Staking while keeping your token still in your wallet without transferring via v.systems cold minting technology.

3. How to calculate your staking rewards?

* Circulating supply = please refer to the corresponding data on CoinMarketCap. This data will be adjusted according to the actual circulating supply in the future.

* 5% = circulating supply inflation rate.

* 5% * Circulating supply = The total amount of IPX token that the reward system generates.

* S = Total effective Staking amount of IPX token from all participants that day.

* Y_n = Total amount of IPX token you stake that day.

We will add the IPX Staking Calculator on the official page tachyon.eco/network so that everyone can calculate rewards easily. Public server list, official guide, and staking data analysis will also be updated to our official site’s Network page. A node forum for everyone to discuss IPX staking and node operation is included in our following plans as well.

Anyone can run a Tachyon Node!

Over 150 nodes have been created on Tachyon VPN by tech enthusiasts via the Node Manager. Now, we’re offering an easier way for everyone to run nodes and earn rewards.

Participants can select a trustworthy Platform Partner to help manage nodes and maximize the session rewards. Platform Partners will offer servers, run nodes and are responsible for all the risks of node operation.

How to join?

Step1. Submit your wallet address to stake 20,000–200,000 IPX.

In general, an individual Tachyon node has a staking capacity of 20,000–200,000 IPX. To start a single node, the minimum staking is 20,000 IPX. If your staking amount is beyond 200,000 IPX, the excess part will not be counted. However, the staking amount may be adjusted. It is flexible on different Platform Partners. The lower barrier can be expected.

You can get IPX from these exchanges:

Buy, sell, exchange and trade IPX Token on Exchanges

The IPX token is a blockchain token residing on the V SYSTEMS blockchain network. The token provides an easy…

tachyon.eco

Step2. Get your servers

You can create nodes and choose the servers from the Platform Partners like ipxus.com..

Step3. Start Staking

Tachyon VPN will attract global VPN users to use your nodes by listing them in our bandwidth marketplace.

Development Timeline of IPX Staking System

1.IPX Staking System 1.0 — May 2020

Introduce Platform Partners. Offer an easier way for everyone to join.
IPX Staking System Global Testing begins on ipxus.com.

2. IPX Staking System 2.0 — July 2020

Integrate IPX Staking System into Tachyon VPN. Node Providers can start to receive session rewards immediately from global VPN users.
Node Providers can join staking, earn rewards and manage nodes via Node Manager 2.0.
Cooperate with more Platform Partners. Offer more choices to Node Providers.

3. IPX Staking System 3.0 — December 2020

Node Providers can enjoy automatic operation, maintenance and legal assistance system with Node Manager 3.0.
Open the source and offer tools to help Platform Partners run customized staking events easily.

ipxus.com

ipxus.com is the first IPX staking site developed and run in collaboration with one of our Node Providers. ipxus.com will make it very easy for IPX token holders to become node providers themselves by automating the creation of Tachyon nodes. IPX Staking Global Testing will be launched on ipxus.com this month. Please stay tuned!

Terminology

Node Provider：People who create nodes by Node Manager client or rent servers from Platform Partners and use nodes to join IPX staking.
Platform Partner: Partners who offer cloud servers renting and servers management or the exchanges which offer IPX staking on their own sites.
Node or “Tachyon Node”: Computers running tyVpnServer in order to provide services on the Tachyon Network.
Clients/Users: People who buy and use VPN traffic in Tachyon VPN.
Tachyon Protocol: Tachyon Protocol is what nodes and users in the Tachyon network speak to one another.
Tachyon Network: Decentralized network using Tachyon Protocol with nodes located around the world.
Bandwidth Marketplace: The platform of the Tachyon VPN where people can sell and buy bandwidth based on Tachyon Network.
IPX Staking System/Tachyon(IPX) Staking System: The official name of our staking system. It uses an incentive design that enables an open, transparent, and competitive bandwidth marketplace.
Node Incentives: a unique model that incentivizes participation and performance. A staking reward for participation that subsidizes server bills, and variable session fees for performance and bandwidth service they provide.
Staking Rewards: The tachyon blockchain annually generates 5% inflation based on the amount of IPX circulating to incentivize equally to token holders who secure the Tachyon network by staking on IPX nodes.
Session Rewards: The rewards earned by selling VPN bandwidth and later, other services, to users. Session rewards vary based on the prices node operators set, as well as the demand from users for services provided by nodes.
Session: A 5 megabyte block of internet traffic purchased by users from node operators who price sessions at their discretion.