Welcome to PlatON Tips-Episode 13
We are going to talk about the Economic model
PlatON’s economic design goals
PlatON’s economic design has the following goals:
First, choose PoS. We believe that PoW’s energy consumption is too high. Faced with real-world energy constraints, PoW’s market share cannot grow indefinitely. PlatON’s consensus algorithm is called PPoS (PlatON PoS).
Second, reduce consensus costs. PPoS uses off-chain identity and credit mechanisms and programmatic arrangements, but reduces the reliance on them through the randomness introduced by VRF. This can effectively suppress bribery and collusion.
Third, strengthen the coupling relationship between the economic activities in the public blockchains and the economic activities supported by the public blockchain (that is, data and computing power circulation markets) to provide support for the value of the token.
Fourth, endogenously inhibit the expansion of the PPoS mining pool.
PlatON’s economic solution
The business cycle in PlatON
first introduce several basic economic cycles in the PlatON economic model:
- Additional period
PlatON is designed to issue additional shares every year. This additional period is not a natural time cycle in PlatON, but a block height cycle. Based on 365.25 days a year, it is based on the average block production time within a period of time (the time range is based on the current block). The previous year, calculate the number of blocks in the current additional period. In order to make the additional issue logic always be processed in the settlement block, the additional issue period is designed to be a multiple of the settlement period when designing, so the additional issue block is also a settlement block. Due to the uncertainty of the average block production time, the number of settlement cycles in the issuance cycle will be dynamically adjusted.
In PlatON, considering the system processing performance, the logics such as lock-up processing, pledge lock, staking reward issuance, additional issuance, and node ranking are processed periodically and centrally. This cycle is called the Epoch. The last block of the Epoch is called the settlement block, which handles various periodic processing logic in a unified manner. The Epoch is a multiple of the consensus cycle and is fixed at 10750 blocks.
Each consensus Round produces 430 blocks, of which the 410th block is an election block, used to select 43 validator nodes for the next consensus Round.
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