Supernode 101 | Earn Vite Rewards Daily (Updated on March 2020)
Everything You Need to Be a Snapshot Block Producer (SBP)
1) What is a supernode?
Supernodes are unique to blockchains with a Delegated Proof of Stake (DPOS) consensus mechanism. Think of DPOS as a representative democracy, wherein the elected officials confirm the legitimacy of individual transactions and the overall public ledger.
2) Why are supernodes in Vite called Snapshot Block Producers?
Vite uses a variant of DPOS called Hierarchical Delegated Proof of Stake (HDPOS). This is due to our Block Lattice architecture which is a novel form of Directed Acyclic Graph (DAG). In HDPOS, there are three levels of consensus:
Local Consensus: Happens at the level of user accounts and smart contract accounts. Vite’s Block Lattice DAG ledger means that each user and smart contract has its own chain. Delegated Consensus Groups are hand-picked sets of full nodes who determine the state of smart contracts.
Global Consensus: Global Consensus happens at the Snapshot Chain level, through the Snapshot Consensus Group. The Snapshot Chain is an overall ledger of all chains at the Local Consensus level; though it does not store the whole ledger, it stores key information such as account balances and roots of Merkle Trees of smart contract states.
The relationship between Local Consensus and Global Consensus is captured in the following analogy: a company records its financial transactions (Local Consensus) and an auditor confirms that they are correct (Global Consensus). Supernodes are members of the Snapshot Consensus Group, from which the top 100 are eligible to become SBP’s.
Snapshot Block Producers (SBP) are the top 25 voting supernodes within the Snapshot Consensus Group, who produce blocks for the Snapshot Chain. Vite invented the Snapshot Chain to mitigate security issues posed by DAG architecture, which are well known.
3) Why should I become a supernode and SBP? — the SBP incentive plan
To become a SBP, a node must:
- Stake 1,000,000 VITE coin;
- Run a server and have necessary skills to maintain said server;
- Have community influence and be able to call for votes from VITE holders.
The top 100 SBPs with the most votes will be allowed to produce blocks and receive mining rewards. The probability for a top-25 SBP to produce a block is 23/25, and the probability for a SBP placed in the 26th — 100th range to produce a block is 2/75.
Reward amount (SBP rewards): All SBPs running for a full year will receive a mining award of 30 million VITE (roughly 3% of total supply). The SBP rewards are divided into two categories:
- Block-producing rewards: 50% of SBP rewards will be distributed based on the number of blocks created by each SBP as a percentage of total number of blocks created.
- Staking & Voting rewards: The other 50% will be distributed based on the amount staked and the amount of votes received by each SBP as a percentage of the total amount staked and amount of votes received (by the top 100 SBPs).
**The current annual ROI for a top 25 SBP is 15%-23%.
4) How can I become a supernode/SBP or full node?
1. Set up a full node. This takes 10 minutes maximum. full nodes keep the complete Vite ledger, vote for SBP’s and earn rewards unique to full nodes.
Check out the full node tutorial.
2. Set up a supernode in order to become an SBP. Be ready to stake VITE through your wallet and start the process of getting votes!
Minimum hardware requirements:
- 2-core CPU;
- 4GB memory;
- 100GB hard drive space.
5) Who are the SBP’s and how many are there?
Take a look at our SBP list online. Many of the teams have interesting personal profiles and they’re based all over the world!
Some SBP info can be viewed at the SBP page on our website.
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