We are proud to announce that Vite TestNet 1.0.0 is about to launch. In order to incentivize participation in testing the network, we have set up the following plans.
(Please note that Vite Labs reserves the right to change the rules for the Incentive Plan based on community participation, and will communicate such changes to the community on a timely basis if they do occur)
SBP (Snapshot Block Producer, aka Supernode) Election
Each full node will be eligible for becoming a SBP on the TestNet and collecting mining rewards. At the time of MainNet launch, all SBP on the TestNet will automatically become SBP on the MainNet.
To become a SBP, a node must:
- Stake 500,000 VITE (this requirement becomes 1,000,000 VITE for MainNet);
- Run a server and have necessary skills to maintain said server;
- Have community influence and be able to call for votes from VITE holders.
Vite Labs will retain at least 5 SBPs to ensure the stability of the system. The remaining SBPs are generated via voting.
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.
Initially, Vite Labs will be responsible for running all top 25 SBPs. When a new SBP is registered in the community, and it obtains at least 200,000 votes, Vite Labs will retire one of its official SBPs, to allow the new SBP to takes its place. If more than 95 community nodes have registered for SBP status, they will compete for the top 95 community SBP spots according to their vote count.
SBP Incentive Plan
In the TestNet, the VITE tokens originally reserved for airdrop & marketing (which has been migrated from ERC20 to TestNet per a previous article), will be used to reward the miners. After the MainNet is launched, miners will be rewarded through additional issuance of tokens (aka inflation).
Reward amount (SBP rewards): All SBPs running for a full year will receive a mining award of 3% of the total supply, which is 30 million VITE. 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 SBP rewards are only distributed amongst the top 100 SBPs. The top 25 SBPs will get the most rewards from both categories. Below are examples of rewards for SBPs under different scenarios:
Example 1: Suppose that, throughout the day, a top-25 SBP has 4% share of the total amount of VITE staked and voted amongst the top 100 SBPs. This SBP will receive rewards of 3,156 VITE on that day (1,512 VITE for block production and 1,644 VITE for votes & staking). This imputes to an annualized return on investment of 230%, based on staking of 500,000 VITE.
Example 2: Suppose that, throughout the day, a SBP ranked between 26 and 100 has 1% share of the total amount of VITE staked and voted amongst the top 100 SBPs. This SBP will receive rewards of 499 VITE on that day (44 VITE for block production and 411 VITE for votes & staking). This imputes to an annualized return on investment of 33%, based on staking of 500,000 VITE.
Rules for SBP Block Creation
The Vite system generates one snapshot block per second. The mining reward is calculated in terms of blocks. All SBPs produce 86,400 blocks in one day. Each block is rewarded approximately 0.95 VITE.
Rewards for Voting — Voters will receive Mining Rewards obtained by Vite’s Official SBP
In TestNet, all mining rewards obtained by official SBPs will be distributed to the community. Recipients of the rewards include voters and users that run full nodes.
If you have VITE tokens in our TestNet, you will receive rewards every day by voting for any of the OFFICIAL SBPS. The rewarded amount depends on the total number of voters. Note that more voters means less income for each voter. Therefore, vote early (fewer voters then) to earn higher rewards!
If you transfer your VITE tokens out of the original voting account, that account will not be able to receive voting rewards anymore.
Vite Labs will give away all SBP rewards every day, according to this breakdown: 70% to the voters and 30% to the full node operators.
When the community starts to register as SBPs, the official SBPs will be gradually retired until five of them remain. The remaining official SBPs will continue to distribute their mining rewards to voters and full-node operators.
Voluntary Migration for User-owned VITE ERC20 Tokens to Vite TestNet
Vite ERC20 holders may choose to convert their own VITE ERC20 tokens to VITE in a 1:1 ratio.
The converted tokens can be used for SBP registration (i.e., staking) or voting for SBPs.
The migration is one-way and not reversible. After the migration, your VITE will be temporarily un-tradable in the secondary market, until the MainNet is launched.
After Vite MainNet is released, the VITE tokens on the TestNet will be converted to the MainNet, on a 1:1 basis.
Additional information
The TestNet Incentive Plan will kick off after the TestNet is launched, AND after we release a system for users to migrate their ERC20 tokens to the TestNet.
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