Proof of stake is quite familiar to us, there are a lot of projects that have been applying it, however with Canxium, it has a difference and you need to pay attention.
There are NO fixed staking rewards? Why?
Canxium is a project aimed at a market economy. If imposing a fixed emissions roadmap or a fixed reward would break that core principle.
Therefore, once again, we would like to emphasize that there will be no fixed rewards, there will be no concept of just staking and getting a reward.
Instead, the rewards will come from offline mining, when the market conditions meet the necessary criteria for miners to start mining and submit valid mining transactions to the network, the validators will validate it and insert it into their block, while enjoying 10 to 15% of the mining reward of that transaction.
This is the operating mechanism of the hybrid chain and the decentralized supply mechanism according to demand. Staking rewards and CAU are only mined when market demand exceeds supply and incentivizes miners to mine, otherwise there will be no staking reward and no new CAU if the market demand is too low.
If you have heard of the Merge and Ethereum’s PoS, Canxium will also go through that process, we will open the staking launchpad to conduct the transition process after the testnet successfully switches to Hybrid chain.
To summarize, Canxium’s PoS mechanism is basically the same as Ethereum, instead of having to stake 32 ETH, you have to stake 320 CAU. However, rewards and penalties are a bit different.
- Penalty: Canxium PoS penalty are same as Ethereum: If your validator node are inactive or offline, you will be fined an amount of CAU, estimated at 1 to 2 CAU per day of inactivity. If the network is unable to finalized, the number of penalized CAUs will increase proportionally to the number of epochs that cannot be finalized.
- Reward: There are two type of reward in Canxium Hybrid Chain:
a. PoS reward (Only if balance < 320 CAU): If your node are online, back to producing blocks normally, and your validator’s balance < 320 $CAU: You will be rewarded with an amount of CAU equal to the penalty. This means your CAU number will always gradually recover to 320 CAU, but never exceed 320 CAU.
b. Offline mining reward: Depending on the miners, this reward will always be paid to validators if they create blocks and validate successful mining transactions.
If the validator validate and include a mining transaction to their block, the validator will be rewarded by 15% of the offline mining reward.
The total supply of Canxium before the transition period to PoS was only 1 million, how much will validators earn when it reaches 10 million?
