Q&A on IPX Staking System

Tachyon

Published in

Tachyon Protocol

10 min readJun 1, 2020

Questions List:

Part1. About the System

Q1. What is the IPX Staking System?

Q2. What’s the differences between IPX Staking System and IPX Staking 2.0 on v.systems?

Q3. What’s the differences between IPX Staking Model and other token staking?

Part2. About Participation

Q1. How to join IPX Staking?

Q2. Where can I participate in IPX Staking?

Q3. Is there any requirement for participants?

Q4. Do I need to transfer my token to join?

Q5. How many IPX do I need to stake for one node?

Q6. How long should I stake?

Q7. How many nodes can I stake?

Q8. Are there any risks to run a node on Tachyon VPN?

Q9. Can I cancel my participation after staking? How to cancel it?

Q10. What if I want to create and run the node by myself?

Part3. About Rewards

Q1. What rewards can I earn via IPX Staking System?

Q2. How to calculate my rewards?

Q3. When will the rewards be distributed?

Q4. Can my interest also generate interest?

Q5. If I cancel the participation, can I get my rewards?

Q6. Can I get more rewards if I stake for a longer time?

Q7. I have joined the Bootstrap Program, how about the 10% staking rewards?

Q8. Is there a lock up date for my rewards?

Part4. About Platform Partners

Q1. What is the Platform Partner?

Q2. What is ipxus.com?

Q3. What’s the relationship between IPXUS and Tachyon?

Q4. What’s the advantages of IPXUS as the first Platform Partner of Tachyon?

Q5. How to choose a Platform Partner as a participant?

Q6. Can we trust the Platform Partners?

Q7. Will you introduce more Platform Partners in the future?

Q8. How to become a Platform Partner?

Q9. Are there any rewards for Platform Partners?

Q10. Can Platform Partners join IPX Staking?

Part5. About the Development Timeline

Q1. When will the global test end?

Q2. What’s your next plan?

Part6. Terminology

Node Provider
Platform Partner
Node or “Tachyon Node”
Clients/Users
Tachyon Protocol
Tachyon Network
Bandwidth Marketplace
IPX Staking System/Tachyon(IPX) Staking System
Node Incentives
Staking Rewards
Session Rewards

Part1. About the System

Q1. What is the IPX Staking System?

IPX Staking System is an incentive system that enables an open, transparent, and competitive bandwidth marketplace. With this system, Node Providers are able to earn rewards by staking and selling bandwidth to global users. IPX Staking System is self-governed by all of its participants, and can ensure a stable supply of bandwidth for Tachyon VPN.

Q2. What’s the differences between IPX Staking System and IPX Staking 2.0 on v.systems?

Q3. What’s the differences between IPX Staking Model and other token staking?

Traditional staking aims to encourage token holders to hold their token for the longest time possible. The amount of rewards ties with the total staking amount and time, meaning the token holders only delegate their tokens for staking in order to get more rewards, and they don’t have direct control over the operation of the network.

The IPX Staking System comes up with a new solution to build a more community-driven staking model. It converts the traditional staking into two parts: 1) regular staking rewards generated by the system, and 2) variable session rewards based on the contribution made to the core system construction.

Part2. About Participation

Q1. How to join IPX Staking?

Just 3 simple steps.

Step1. Stake 20,000–200,000 IPX token per node.

Step2. Get your servers from Platform Partners like ipxus.com.

Step3. Start staking and earning node incentives.

Q2. Where can I participate in IPX Staking?

For now, you can join IPX Staking on the sites developed and run by our Platform Partners like ipxus.com. Node Providers who create and run nodes by themselves can also join staking on Node Manager2.0 in July.

Q3. Is there any requirement for participants?

Since we have introduced Platform Partners to offer servers and help run nodes. No tech skills are needed so anyone can join easily.

Q4. Do I need to transfer my token to join?

You don’t need to transfer your token anywhere. We have used V Systems’ cold minting technology so that all participants can join in staking with the tokens remaining in your own wallet.

Q5. How many IPX do I need to stake for one node?

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.

Q6. How long should I stake?

You can stake as long as you wish.

Q7. How many nodes can I stake?

It varies from different platform partners. Please confirm this with the Platform Partner you choose.

Q8. Are there any risks to run a node on Tachyon VPN?

You don’t need to worry about this. Platform Partners will be responsible for handling all risks.

Q9. Can I cancel my participation after staking? How to cancel it?

Of course you can. There is a ‘Stop’ option in your participation account. You just need to click it then your participation can be cancelled immediately. And if the amount of IPX in your wallet changed to be less than 20,000, you will be regarded as stop staking as well automatically by our system.

Q10. What if I want to create and run the node by myself?

You can create and run nodes by Node Manager but these nodes can’t join staking for now. The staking function will be released on Node Manager2.0 in July. Please stay tuned!

Part3. About Rewards

Q1. What rewards can I earn via IPX Staking System?

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.

Q2. How to calculate my rewards?

Your total Node incentives = Staking Rewards + Session Rewards.

Staking Rewards: A 5% regular reward generated by the system.

* 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.

2. Session Rewards: the variable reward from selling bandwidth to global VPN users.

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.

We will add the IPX Staking Calculator on the official page tachyon.eco/network so that everyone can calculate rewards easily.

Q3. When will the rewards be distributed?

All rewards are designed to be distributed to Node Providers on a daily basis.

Q4. Can my interest also generate interest?

Yes. All your rewards can be automatically re-staked, creating a compounding benefit.

Q5. If I cancel the participation, can I get my rewards?

As the rewards calculation and distribution is on a daily basis. If your staking period is less than 24 hours, you will get no rewards. If you have staked over 24 hours, the rewards will be received.

Q6. Can I get more rewards if I stake for a longer time?

It depends on the Platform Partners.

Q7. I have joined the Bootstrap Program, how about the 10% staking rewards?

To appreciate the Node Providers who create and run nodes by themselves and help to build the Tachyon Network on an early stage, we launched the Bootstrap Program. All Bootstrap Program participants will get the double staking rate, namely 10% staking rate on Node Manager2.0 in July.

Q8. Is there a lock up date for my rewards?

During the test period, there is no lock up for your rewards. Your IPX is totally under your control.

Part4. About Platform Partners

Q1. What is the Platform Partner?

The official Partners who offer cloud servers renting and servers management or the exchanges which offer IPX staking on their own sites.

Q2. What is ipxus.com?

IPXUS is the first official Platform Partner of Tachyon which offers Tachyon cloud servers renting & management and runs IPX staking. This site is developed in collaboration with the Tachyon team and is authorized to initially launch IPX Staking.

Q3. What’s the relationship between IPXUS and Tachyon?

IPXUS is built by some of our early Node Providers. They are very experienced in node management with passion on Tachyon VPN and IPX Staking System. The decision to launch global testing on the site developed and run by our early Node Providers is a manifestation of community autonomy and decentralization. We also offer technical support in the development of ipxus.com to ensure its functionality.

Q4. What’s the advantages of IPXUS as the first Platform Partner of Tachyon?

The website is operated independently by the Node Providers.
The team are much experienced in server operation and maintenance which will ensure the benefits of all node participants.
IPXUS offers the top well-known cloud service to all participants including AWS, Google Cloud, DigitalOcean, etc.
The legal team handles possible legal issues and completely isolates you from potential risks.

Q5. How to choose a Platform Partner as a participant?

All the Platform Partners must have the official authorization from the Tachyon team. There will be more Platform Partners joining us and running IPX Staking in the future. We will release an official page to list all Platform Partners with their features to help participants to choose. You can select the ones according to your needs.

Q6. Can we trust the Platform Partners?

Yes. All Platform Partners are selected strictly by our team. They are all officially authorized to run IPX Staking.

Q7. Will you introduce more Platform Partners in the future?

Yes. We’d like to introduce more Platform Partners to offer more choices for participants, especially the well-known brands in this industry. And top exchanges are also expected to participate.

Q8. How to become a Platform Partner?

You can send your application to contact@tachyon.eco.

Q9. Are there any rewards for Platform Partners?

Platform Partners can earn management fees from Node Providers and Tachyon System.

Q10. Can Platform Partners join IPX Staking?

Nope. Platform Partners can’t join IPX Staking.

Part5. About the Development Timeline

➤ Q1. When will the global test end?

Not sure for now.

➤ Q2. What’s your next plan?

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.

Part6. 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.