WORBLI Resource Model Update

WORBLI
WORBLI
Oct 5, 2019 · 8 min read

As we enter into the next phase of the WORBLI network with applications being rolled out, we have begun implementation of the WORBLI Resource Model. WORBLI has been designed to meet the specific demands of Decentralized Finance (“DeFi”) and, as such, there are considerable differences between WORBLI and other EOSIO chains in the way resources are managed.


The resource allocation per WORBLI Utility Token (“WBI”) is linear and constant in its proportionality to the overall system resources.

Simply put, x% of WBI tokens grants the owner x% of WORBLI CPU or NET. There is no “Leeway” or fractional reserve applied to resources as this creates instability for resource users and their capital management.


Excess resource requirements are managed automatically through a rolling daily borrowing protocol with an algorithmic cost of capital calculation linked to the inflation curve.

In other words, the “Leeway” that exists on other chains is not free on WORBLI. Users pay for excess usage via a daily borrowing protocol. The cost is not subject to the vagaries or friction of markets but is billed at the rate of inflation. Borrow costs are therefore a function of Utility. Those “Locking” resource in the protocol are able to monetize latent resource and the Network resources are optimized accordingly.


Each WBI token in addition to their CPU or NET resource has the right to utilize their proportional amount of system RAM at no extra cost.

The same “Locking” protocol manages excess RAM supply on the same pricing curve.


In addition, Voting on WORBLI is fundamentally different from other EOSIO chains.

At the heart of the WORBLI resource management model is our modified consensus protocol, which we call DPOU (“Delegated Proof of Utility”). Block producers in our system are chosen by Voting, with Voting weight proportional to the utility generated by Voters. In other words, this ensures that true users determine who gets to produce blocks.

DPOU combines elements of both PoS (“Proof of Stake”) and PoW (“Proof of Work”) since users need to either stake or borrow from others in order to transact, but essentially, they are doing “Work” and thus their voting weight is determined by their “Capital at Work”.

For example, when the Network is operating at 20% Utility, a user of 2% Utility has 10% of the voting weight. Conversely, the 80% with zero resource usage have zero votes. The full details of our model will be released over the coming weeks. Below we deal specifically with the factors that concern the treatment of Block Producers with respect to the Resource Model, the Token Model and the Voting System which again deviates considerably from other EOSIO chains.


Block Producers

Block Producers provide the foundations of the WORBLI Network. The essence of our economic model is the alignment of all stakeholders with respect to their shared risk and rewards. Our Block Producer model is not a “Rent-seeking” arrangement but one where the Block Producers are rationalized as physical stakeholders through their incentives and subsequent actions to the long-term benefit of the Network. At a very basic level, a delegated system such as our DPOU blockchain is only as strong as the capitalization of its Block Producers. Our model drives a strong correlation between growth of the network and Block Producer capitalization, which is essential for DeFi adoption.


Inflation and the “Bootstrap” Phase

Inflation on WORBLI will exist throughout the Bootstrap phase. It is constructed as a re-allocation of resource away from non-resource users towards the following stakeholders:

(1) Resource Users

(2) Users Locking Resources

(3) Block Producers

Once the system is mature, the inflation distribution is not required and actually becomes counter-productive to efficient markets.

Inflation is driven by Utility

Inflation on WORBLI is not constant but is derived from the measurement of usage of CPU and NET. It is distributed daily and can end after five years or when a fixed amount of WBI are in issue, subject to certain voting procedures.

Block Producer Compensation

(1) Distribution from Inflation

(2) Distribution from Inflation as a result of NET usage

(3) Block Producer Bond

The WORBLI Foundation has initially appointed 15 Active Block Producers that equally share the apportioned daily inflation distribution.

(1) Distribution from Inflation

The proportion of inflation distributed to Block Producers is itself related to the Utility of the WORBLI Network and considers the implied stakeholder position in the Network via the Block Producer Bond.

(2) Distribution from Inflation as a result of NET usage

Whilst CPU Utility receives the benefit of inflation distribution, the equivalent benefit attributable for NET Utility is re-allocated to Block Producers.

(3) Block Producer Bond

Inflation compensates Active Block Producers. However, the bond deals with all Block Producers as follows:


Block Producer Groups

Reserve Block Producers receive no inflation distribution other than their potential proportionate allocation in the event they become Active for any period.


Block Producer Voting

  • DPOU Voting is based on Utility and not Stake.
  • Eligible users vote daily by sending an action to the voting contract to record their preferences. Changing one’s preference takes effect on the next day at 00:00 UTC.
  • Each Vote enables the User to vote for up to 1/3 of the number of Active Block producers or 5 Votes.
  • Votes are normalized to a proportion of Utility but adjusted for total Network capacity. That is to say, as the Network capacity increases, the Vote count per period will increase proportionately.
  • Normalized Votes are summed on a per 24-hour basis. They are tallied off-chain by an oracle and accumulated Votes are recorded on-chain.

Block Producer Bond

The WORBLI FOUNDATION has allocated Three Hundred Million WBI for the purposes of establishing a Block Producer Bond that allows every Certified Block Producer to be eligible for a distribution at maturity.

The WBI Tokens that underlie the Bond are divided as follows:

ACTIVE POOL 100 Million WBI

The Active Pool is distributed to any entity that has performed as an Active Block Producer throughout the Bootstrapping phase. It uses a series of weightings that skew the Active rewards to the earlier years of the Bootstrap period.

On the basis that there are 15 Active Block Producers for the maximum of 5 years, an Active Block Producer for the whole period accumulates as follows:

GENERAL POOL 200 Million WBI

The General Pool is allocated to every Certified Block Producer over the Bootstrap phase that received votes. Its allocation is based on the individual votes received as a proportion of total votes received for the whole period noting that:

  • The General Pool is only distributed at the end of the Bootstrap period (as opposed to the 5 year stop on the Active Pool).
  • For both Active and General Pools, a Block Producer that has definitively been removed loses the right to claim any part of the Bond. In this event, the tokens are burnt at the respective time of distribution of either Pool.
  • Certified Block Producers includes Active and Reserve Block Producers
  • In an expanding Network, later Votes will have more weight offsetting the skew of early years in the Active Pool.

Block Producer Evolution

The WORBLI model establishes the stakeholder position of Block Producers from a long-term strategic perspective. It provides a conditional path for Block Producers to evolve with the WORBLI Network in a fair and symbiotic relationship with other stakeholders across the Network such as applications and resource holders.

The survival bias in the model favors Block Producers who expand and diversify their business models to become multi-layer participants; driving and facilitating Utility. These business models increase their capital value via the Block Producer Bond and the correlated efforts of multiple models have an exponential value effect.

This leads to well capitalized and diversified Block Production which has a catalytic effect on the health of the WORBLI economy.

This is the ultimate goal for the WORBLI DeFi Blockchain.

WORBLI Block Producers as Trusted Partners

Aside from the above incentives, our Block Producers are considered trusted partners and can be called upon to deliver certain services for compensation. We are currently in the process of building many groundbreaking products and working with teams who are creating cutting-edge applications that all require development and advisory. We are always looking to leverage the expertise of our industry-leading Block Producer teams and there will be an abundance of opportunity for them to get involved with the various projects that we’re working on.


“We’re immensely proud of the model that’s been created for our Block Producers. We believe current Block Producer arrangements that are out there can be drastically improved to incentivize BP teams and in general, improve the entire ecosystem. This model truly accomplishes this and we can’t wait to see it up and running”.

WORBLI CEO, Domenic Thomas

The WORBLI business development team loves working with great projects. If you think WORBLI’s state of the art financial services blockchain could help your business or application, send an email to mitch@worbli.io

To learn more about WORBLI or create an account? visit www.worbli.io

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WORBLI is the infrastructure for an efficient, honest, and accessible financial system for enterprises and individuals to unlock the potential of blockchain.

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WORBLI is an enterprise-grade, compliance-focused public blockchain network; enabling a fair and inclusive financial system for the world.

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