Edge Block Producer's Reward Distribution
In "Future's Finance," the distribution of rewards to Edge Block Producers (EBPs) is precisely structured to incentivize their critical role in maintaining the blockchain's operation and integrity. The reward mechanism is designed to ensure that EBPs, who validate transactions and produce blocks, are adequately compensated for their contributions. This final version outlines the corrected distribution mechanism and the prerequisites for becoming an EBP in the ecosystem.
EBP Reward Mechanism
Block Reward Allocation: For each block an EBP validates and adds to the "Future's Finance" blockchain, they receive an exclusive 30% of the block reward. Unlike previous interpretations, this reward is not divided among multiple validators but is granted in full to the single EBP responsible for the block. This approach directly ties the effort of block production to a substantial financial incentive, encouraging active and consistent participation in the network's consensus process.
Prerequisites for EBPs: To qualify as an EBP within "Future's Finance," individuals must meet two financial criteria, reflecting their commitment and investment in the network's health:
Burning Requirement: Prospective EBPs must burn at least $2000 worth of FUFI Coins, permanently removing these tokens from circulation. This acts as a significant commitment to the network's future, as it represents a non-recoverable investment in the ecosystem's success.
Staking Requirement: In addition to burning coins, EBPs must stake at least $1000 worth of coins. Staking provides a recoverable but locked-in investment that serves as collateral for the validator's good behavior and sustained participation in the network.
Earning Transaction Fees: Beyond the block reward, EBPs also earn transaction fees from the transactions they process within their validated blocks. This additional incentive encourages EBPs to maximize the number of transactions in each block, boosting their potential earnings while promoting efficiency and speed in transaction processing across the network.
Example Scenario
Assuming a block with a total reward of 100 FUFI Coins:
The EBP who validates and produces this block would receive 30 FUFI Coins as their block reward, corresponding to the 30% allocation.
If the transactions within this block accumulate 10 FUFI Coins in fees, the EBP collects these fees in full.
The EBP's total compensation for this block would be 40 FUFI Coins, combining block rewards and transaction fees.
This reward structure not only guarantees a meaningful return on the effort and resources EBPs dedicate to the network but also aligns their interests with the broader goals of the "Future's Finance" ecosystem. The burning and staking requirements further ensure that EBPs have a long-term stake in the network's stability and success, fostering a secure, efficient, and robust blockchain environment.
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