Welcome to PlatON Tips-Episode 14
We are going to talk about the Economic model
Published by LAT
The token in the PlatON public blockchain is called LAT. LAT does not have a hard cap, and is divided into initial issuance and additional issuance.
LAT’s initial issuance is distributed to the Founding Team, LatticeX Foundation, Research Fund, Ecosystem Fund, Developer Fund, Private Round and Reserve in a certain proportion. This is achieved by writing the allocated account and balance parameter information into the genesis block configuration, and introduce the corresponding locking mechanism.
The initial issuance of locks is controlled through the Lockup contract, and the lock-up and unlocking are performed according to the set Lockup period. The amount of the Locked up Tokens cannot be unlocked in advance. In order to improve the processing performance of the system, the locking period must be a multiple of the Epoch (10750blocks). Therefore, the unlocking point (unlocking block height) of each locking period is the Epoch block (the last block of the Epoch).
In order to protect the equity of the locked-up account, the Locked-up balance can be used to verify the pledge and delegate of the node. When the pledge or delegate is released, the pledged and delegate LAT returns to the Lockup contract.
According to the Lockup plan, when the unlocked block is reached, the Lockup contract automatically unlocks the corresponding LAT to the locked-up account address.
The additional issue is mainly to motivate miners to maintain distributed ledgers. In the case that pure transaction fees cannot be met as incentives for miners, the additional block issuance will compensate them for the costs and risks. At the same time, the continuous issuance can dilute the holder’s Token, thereby promoting more people to participate in PoS consensus validator and ensuring a more stable network.
There are usually two ways to issue additional shares:
- Batch issuance: Periodically issue additional batches, each batch issuing a certain percentage. Such as Cosmos issue method.
- Continuous issuance: irregular issuance can be understood as shortening the batch of batch issuance mode to a very small value. Such as the EOS issue.
PlatON adopts the batch issuance mode, that is, one issuance per year (one additional period). Compared to continuous issuance, batch issuance is simpler and more practical, and can improve the performance of the chain.
According to the annual expected number of blocks for the additional period, LAT issuance. Compared to LAT’s total issuance at the end of the previous year, a fixed additional 2.5% issuance per year. Additional issuances are made in the additional issuance block (the last block in the last additional period), and 2% of the additional issuance is transferred to the reward pool controlled by smart contracts. And the reward is given to the validator by the running of the PPoS consensus algorithm. The remaining 0.5% is transferred to a trust fund, which is used by the LatticeX Foundation as a trustee to reward future developers of the PlatON basic agreement.
The additional LAT issued by the reward pool will be used for validator block rewards and staking rewards. The details will be detailed in the incentive mechanism section.
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