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Completely describe the IOST node application / voting rules, application method and compensation system!

Completely describe the IOST node application / voting rules, application method and compensation system!  - iost text only 696x345

IOST is a block chain platform aiming to balance scalability and non-centralizedness by introducing sharding technology and proprietary consensus mechanism.

IOST announced that it will release the main net on February 25 next year , but this time further detailed mechanism on how to apply to the node and voting has been released.

On this page, I will explain how to apply to the ” Servi node ” of IOST · compensation system and easy to understand mechanism and merit of ” node voting ” that anyone can hold a token.

【cryptocurrency】 Complete commentary on the features and future of IOST (IOS T)!

Servi node application method · Profitability · Cost

Completely describe the IOST node application / voting rules, application method and compensation system!  - Screenshot 2018 12 23 at 12

A Servi node is a person or organization that creates and verifies blocks based on IOST’s proprietary consensus mechanism ” Proof of Believability (PoB) “.

This node can be a node if there are no restrictions on number and after applying for registration beginning on December 21, it satisfies the following two criteria.

  1. Acquisition of votes more than 0.05% (equivalent to 10.5 million IOST) of the entire network. Node candidates can vote for themselves .
  2. 8 core CPU, 16 GB RAM, storage of 5 terabytes or more, bandwidth of 100 Mbps or more

Registration application can be done from here .

The above criteria are numerical values ​​in the first year (FY 2019), and the number of votes required for node application and storage may be changed in the future.

What is the merit of becoming a Servi node?

In addition to remuneration by generating and verifying blocks, Servi node can also acquire invitation fee of new user .

  • Remuneration by node operation : 4% of the IOST token distributed throughout the network is allocated as remuneration by the operation of Servi node. The amount of remuneration that each node gets will increase in proportion to the number of votes at the time of election. Also, if a node is elected by a vote of a community (a voter other than him / herself), it is also to share 50% of the remuneration with the community .
  • Remuneration by inviting new users : Also, Servi nodes can earn rewards by inviting users to the network. It is said that 10 to 30% of the target fee can be acquired according to the opening of a new user’s account, iRAM commission, iGAS usage etc. (For details, see below).
Completely describe the IOST node application / voting rules, application method and compensation system!  - 1 gunvmpZbSKfvOGjZixCQZQ
From IOST Medium

It is estimated that ROI (Investment Return Rate) of Servi node operation will be as high as 40% , assuming only votes to itself, up to 4700% if you include votes and invitation fees from other voters.

The node application is scheduled to start from December 21, the vote on ERC – 20 token will be from the beginning of January next year to February 25, the vote at the main net token will start on the same day (the mechanism of voting will be the next section It explains it).

Profiability of Servi node

In the official announcement of IOST, the following scenario is cited as an example of revenue.

  • It is assumed that the total number of votes cast for all Servi node candidates is 10% (2.1 billion IOST) of the total supply amount of IOST (21 billion IOST).
  • Remuneration for Servi node (called node A) elected by acquiring 1.05 billion votes (5% of total votes 2.15 billion IOST) is as follows.
  • 21 billion (Total Supply Amount) × 4% (Total Compensation Amount to Servi Node) × 5% (Percentage of Node A Acquisition Votes to Total Votes) = 42 million IOST
Completely describe the IOST node application / voting rules, application method and compensation system!  - 1 As PL4jxDZHcskBXqmYrTQ
From IOST Medium

In addition, details of new user invitation fee are as follows.

  • iGAS : At IOST, iGAS can be obtained by staking an IOST token. If a user uses iGAS, the user’s Servi node can receive 10% of usage as a reward.
  • iRAM : A fee of 2% will be incurred when IOST users purchase iRAM. The purchasing user’s Servi node can receive 30% of the fee as a reward.
  • Account opening : If a Servi node invites a new user, you can receive 30% of the user’s account opening fee as an invitation fee.

Cost of Servi node

Cost (approximate value) generated in the operation of Servi node is as follows.

  • Server operating expenses : $ 2,978.4 per year
  • Storage cost : $ 2,764.8 per year
  • Bandwidth cost : $ 563.2 per year
  • In addition to the above, considering the overall operating costs (taxes, maintenance costs, labor costs), it costs approximately $ 10,000 per year

Mechanism and merit of node voting

Node voting refers to a system that votes for the candidate of Servi node, and it is said that anyone can hold a vote if they possess IOST .

Regarding the main net launch on February 25 next year, it is necessary to consider the following matters.

  • Before the main net start (February 25, 2019), you can vote with the current ERC – 20 token .
  • After the main net starting, you can exchange the voting ERC – 20 token with the main net token , at that time you can change the voting destination and invalidate the vote you made.
  • An ERC – 20 token holder who did not vote can exchange to a main net token through an exchange or the like.

What is the merit of doing node voting?

Completely describe the IOST node application / voting rules, application method and compensation system!  - 1 YNqHuQiHTf4etTBv4FdwFg
From IOST Medium

The candidate elected to the Servi node is supposed to distribute 50% of the reward to be acquired to the voters who voted for that node .

In other words, if the candidate who voted for himself was actually elected as a Servi node, we can get some of the reward earned by that node .

Furthermore, if you vote with ERC – 20 token which starts from next January, you can stake tokens for votes and you can also earn profits of 25% per year.

Node · Voting system quick reference table · Comparison with EOS

The IOST Servi node and voting system are summarized as follows.

project EOS IOST
Block creator Fixed by 21 people There is no limit to the number. Everyone can become a node if conditions are met
Condition to become a node Earn votes within top 21 Acquire 0.05% votes for the entire network
Operational cost About US $ 230,000 per year Approximately $ 10,000 per year
Resource efficiency CPU usage low High TPS
Relationship with voters Bribery is prohibited, but measures have not been taken. The exchange can vote on behalf of the user. The official approves the candidate’s self-promotion and provides resources to contributors who produce good results.
Revenue curve The number of acquired votes does not affect the block generation fee. The larger the number of votes obtained, the more the reward will be.
Additional income None There is a new user invitation fee.
Official support BlockOne can run a 10% vote if there is a serious problem with the vote. The official platform allows you to devote remuneration and promotional resources to contributors who produce good results.

To the applicant, the IOST Tech team supports free node support.

Summary

Election of a fair block creator (BP) is an essential process for building highly dispersive networks.

As the number of votes in IOST ‘s Servi node increases , rewards that can be earned increase, so candidates have incentives to involve as many users as possible .

Furthermore, by setting up a system and a staking system where the fee of the block creator is shared to supporters, the benefits of actively participating in voting are given to general users as well .

Completely describe the IOST node application / voting rules, application method and compensation system!  - 1 1SLt GAOsERDS9wLbNjExw
From IOST Medium

The application for registration of the node is to start from December 21, 18, and the vote is to start from mid January 19 .

Related Links:

  • IOST official website
  • IOST: Official Statement on Node Application / Voting System

Author: Yuya 【Coin Desk News】 – Source Post: https://crypto-times.jp/iost-node-application/

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