6 Important Details Every Witnet Testnet Node Operator Should Know
With block counting for the Witnet Testnet Incentive Program due to start on Thursday 18th June 2020, we thought we’d address some key points within the Program Terms and Conditions, as highlighted by community members in the last few weeks.
If you need any further clarification, don’t hesitate to reach out to the community on Telegram, Discord or email.
1. The Testnet Program isn’t about making a quick buck! 💸
The Witnet Foundation is very happy to be able to reward early adopters and contributors within the community.
With that said, the community is committed to its core goals; if anything doesn’t align with these goals, then it’s in the best interest of all those who support and believe in the long-term vision of the project that we re-adjust accordingly.
The goals of the Testnet Incentive Program are:
- to stress-test the Testnet network, and ensure that the protocol is ready to transition to Mainnet
- to engage and support those who wish to make meaningful and vital contributions to the open-source community
- to build and support a strong and thriving community, that believe in the long-term vision of the project
The Testnet Incentive Program is not:
- an opportunity to make a quick buck
- a business, or a guarantee of profit
The community is committed to keeping the conversations open and honest, and ensure that every community member is kept up-to-date with developments as they happen.
2. It’s blocks, not Testnet WITs that count towards your Mainnet WIT allocation!
The Mainnet WITs allocated to each identity will be calculated pro-rata, based on the percentage of qualifying blocks that a participants’ node/s consolidate into the Testnet blockchain during the Counting Period, in relation to the total allocated WITs for this part of the Program (up to a maximum of 12,500,000 WITs).
Here’s an Example
Jane runs 10 nodes on the Witnet Testnet for the duration of Phase 2 program. She registers her nodes to her Witnet ID, and passes the KYC. Over the course of the Counting Period, her 10 nodes mint 0.3% of all qualifying blocks. The program finishes, and 12.5 million WIT are allocated for node operators.
Jane receives 0.3% of 12,500,000 = 37,500 WIT
3. Only qualifying blocks will count towards allocation ✅
It’s likely that a portion of blocks minted on the Testnet during the Program will not be counted for Mainnet WIT allocation (i.e. they will not be considered part of the Program Counting Period, and will not receive a Mainnet WIT allocation).
These include:
- blocks mined by nodes whose operators do not register their node/s, are disqualified from the program, or do not complete the required KYC
- blocks which are disqualified from the Block Counting Period due to an attack, a network error or downtime, or a network update
Please Note: we’ll send you detailed instructions on how to register your node/s in due course.
4. There will be a token lock-up for node operator’s Mainnet WIT tokens 🔐
Over the last few weeks, the community has made the decision to apply a lock-up period to Mainnet Tokens earned by Node Operators during Phase 2 of the Testnet Incentive Program.
During the lockup period, these tokens cannot be used for any of their intended functionality, namely:
- used as collateral on nodes
- spent on data requests within the network
- transferred to other wallets
The lock-up period details are as follows:
- All tokens earned by Node Operators during Phase 2 of the Testnet Program will initially be locked and unspendable within the network
- Token unlocking will be linear
- 7.7% of each Node Operators’ Mainnet WIT tokens will be unlocked every 14 days, following the Witnet Mainnet Launch
- Therefore, 100% of Mainnet WIT tokens earned through mining during the Testnet Incentive Program will be unlocked by the Mainnet Network’s 182nd day (approximately 6 months after Mainnet Launch)
This is to ensure that:
- a network attack is prevented. Unlocking a large number of tokens immediately after Mainnet launch leaves the network more vulnerable to a 51% attack, especially as the network is growing.
- Tokens earned by the “contributions” part of the program are distributed on a similar timeframe (the last batch of tokens for contributors is due to be distributed 6 months after Mainnet Launch)
WIT Mainnet tokens are not designed to be a store of value. They are a tool for smart contract developers to use within the Witnet Network only. WIT tokens are not lucrative or speculative assets. The Witnet Foundation will never facilitate the existence of a secondary market, and so it is possible that such a market will never exist.
5. The network will (probably) break 💔
Witnet is still in Testnet, so expect things to break! Whilst we know this can be frustrating, it’s important to break things now, rather than after Mainnet Launch.
The community is working hard to ensure that it’s as easy as possible to fix things when they break, but as with all unknowns, there may be times when things are out of our control.
We will try our hardest to keep you informed as best we can as things unfold. Please remain patient, and if you have any questions or concerns about anything, reach out to the community on Telegram, Discord or email.
6. There will be network resets, including resets of reputation and Testnet WIT balances 🛑
The community will most likely be resetting the network a few times during the program, and pause the block counting. This means you’ll lose the reputation points and Testnet WITs you’ve mined, and everyone’s nodes will once again start from scratch.
We realize this may seem frustrating. However, as noted above, it’s essential that the Network goes through numerous iterations and updates to ensure it’s ready for Mainnet. This also gives you the chance to improve and optimize your nodes, and levels the playing fields for newcomers (including any new nodes you’ve set up)!
If you lose your Testnet WIT and reputation during a network update, don’t panic! As noted in Part (2), all blocks mined during the Program Counting Period will be counted when allocating Mainnet WIT tokens, so even if your node/s lose their Testnet WIT and reputation, any qualifying blocks you’ve already mined during the Program will count towards your final WIT allocation.
