Toorcoin Staking Rewards — The Token that keeps Giving (Part 2 / 2)

Note: This is the second in our series of two blog posts regarding Toorcoin staking rewards. You can find our first blog post here .

Toorcoin is truly a token that keeps giving. With its unique one token reward staking mechanism, we reward ALL holders of Toorcoin — weekly! Think Neo and Gas, with a one token reward mechanism instead of two. There is also no need to set up masternodes.

Creating an algorithm to track rewards dynamically for a token whose total supply is changing continuously is no small feat. On paper, this may sound simple; practically it requires significant engineering. We have seen how companies like Neo employ a two-token system to help them with their staking process. The benefit of doing so is that the reward calculation becomes relatively straightforward (as the supply of Neo is fixed and fully minted). A continuously evolving token supply makes things more challenging. We wanted to offer simplicity by having a single-token ecosystem that is easy to use (versus a two-token ecosystem). At the same time, we had to ensure we could handle the added technical complexity that a single-token ecosystem can bring in terms of managing reward distribution and keeping transaction costs (gas in the Ethereum network) from ballooning. Enter, the Toorcoin algorithm.

The Toorcoin contract works by keeping track of the number of intervals a user has held Toorcoin for. In this case, an interval is defined as 1 week, which is essentially the reward generation frequency. Now in most examples we have came across, reward distribution is handled by either a third-party process, which triggers a transaction on a token contract that mints and distributes tokens OR by users having to manually claim their reward tokens by making a transaction themselves. We wanted to create something that was self-sufficient — something that wouldn’t require involvement from users or third-parties (us) to actually do the distribution. As such, we decided that the actual minting and distribution of rewards to users would happen WHEN they are involved in a transaction (either sending or receiving Toorcoin).

So if someone was to hold Toorcoin for 6 weeks, at which point they received more Toorcoin from someone, we would calculate and mint the tokens owed as reward to the person before transferring in the Toorcoin sent to them. We would also do the same thing for the sender of Toorcoin. This ensures that no one can game the system by holding let’s say 10 Toorcoin for 10 weeks, buying 1,000 Toorcoin in the 11th week, and then getting rewards across 11 weeks for 1,010 Toorcoin in total. The algorithm ensures that rewards received are always in proportion to the exact number of tokens held across a certain number of weeks. At the same time, even though the minting of the actual reward occurs when an actual transaction takes place, a user’s Toorcoin balance always reflects their original Toorcoin holding PLUS the rewards they are owed.

To put this in perspective, if Regina Phalange was holding 10,000 Toorcoin at the end of week 1 (in year 1 of Toorcoin being launched when the reward rate is 27.94%), she’d be rewarded an additional 47.5 Toorcoin if she held the tokens for 1 week. If she held them for 2 weeks, her total rewards would be 95.23 tokens. If she held for a year, her rewards would be 2,794 tokens!!! The rewards compound as we go along; the longer she holds, the more tokens she’ll be rewarded. What’s important to note though is that in order to get the rewards for a week, she needs to be holding Toorcoin at the time of the snapshot. If she held Toorcoin for a part of the week but had no tokens at the time of the snapshot, she would not receive any staking rewards.

Through this mechanism, we hope to encourage a loyal user base that holds Toorcoin and uses it for actual use cases in the Toorister platform — users who, like us, are excited about Toorcoin and Toorister, and what they can bring to the travel industry.

Get in Touch

Look out for more posts and details about Toorcoin and Toorister through our website and social media channels. We look forward to connecting with all of you!

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Twitter: https://twitter.com/toorcoin

Reddit: https://www.reddit.com/r/Toorcoin/

Website: https://www.toorcoin.com