DPoS Voting and Analysis on Node Investment & Output - Second-Earth/setchain GitHub Wiki

Overview

We use DPoS consensus protocol, which SET (including lockup SET) is the equity proof of the equity holder. Owners can entrust their equities (vote to elect block producers) to guarantee the normal block producing and operation of the SET public chain. And the producers and voters are classified according to functional roles.

A seven-day cycle will be used (starting at 00:00 every Sunday, GMT+8, the same as below), and the list of block producers (21 block producers + 7 backup block producers) by DPoS according to the ranking of votes received by the producers according to all the voting information of the previous cycle. The selected block producers will produce blocks in turn in this cycle and ensure the normal block producing on-chain.
When the BP rate of a block producer is less than 50% every 10 rounds, the backup block producer will replace the producers. And the block producer will be directly eliminated when it cann't be replaced by backup block producer.
Voting information of each cycle is independent, re-vote & votes counting are needed for every cycle, and we encourage every equity owner to actively participate in voting in each cycle to ensure the normal operation of the chain.
The available votes are from the snapshotted account balance per cycle, and the voting does not need token transferring.
The mortgages required by producer requires the token transfer, which is used for the evil punishment.

I. Producer

Producers who may become block producers, participate in the block producing of the chain and have a greater impact on the normal operation of the chain. Therefore, there will be higher requirements for producers.

Any account must and needs mortgage 500,000 SETs (in circulation) and transfer them to a specified account from his account to become a producer. If the producer is found to have done evil during his period as a block producer, he will be punished directly (the mortgaged SET will be forfeited).
The producer's mortgages default to be the number of votes received by the producer in each cycle until cancellation.
It is almost impossible for a producer to be voted as a block producer only by the votes from the mortgages, so the votes from other equity owners are needed. To get voted by others, his total SET holding amount (the initial available votes) must be more than 1 million during the snapshot at the beginning of the cycle, therefore, other equity owners or this producer can vote to him (self) successfully.

Here are a few examples to help you understand (mortgage, the right to be voted by others, initial available votes, available votes):

There is a newly registered account A and the funds of 1.5 million SET from other accounts aSETer a cycle began and wants to register for a block producing node. It has 0 SET (initially available votes) during the snapshot at the beginning of the cycle and registered as a candidate node and mortgaged 500,000 SET (500,000 votes were used for a mortgage so the available votes to 0). If it wants to vote aSETer registered successfully, can cast 0 SET (available votes). Since the amount (the initial available votes) during snapshot is less than 1 million SET, it cannot get voted by itself or others. Therefore, it has 1 million SET during the snapshot at the beginning of the next cycle, which means it can vote for its candidate nodes as well as get votes from others.
Account A wants to register for BP Node and has 30,0000 SET (initially available votes) during the snapshot at the beginning of the cycle, and receive 1.5 million SETs from other account, which has registered candidate nodes, and mortgaged 500,000 SET (500,000 votes were used for mortgage so the available votes is 0), it wants to vote aSETer registered successfully, and 0 SET (votes number) can be cast if it would like to. Since the amount (the initial available votes) is less than 1 million SET, either it can vote for itself or get voted by others. However, it shall have 1.3m SET during the snapshot at the beginning of the next cycle, and it can vote for its candidate nodes as well as get votes from others.
Account A which wants to register BP node and has 2 million SET (the initial available votes) during the snapshot at the beginning of the cycle. It registered as candidate node and mortgaged 500,000 SET (500,000 votes were used during mortgage, and available votes became 1.5 million SET). It wants to vote aSETer successful registration and can vote 1.5 million SET. Because the snapshotted amount (the initial available votes) is more than 1 million SET, he can either vote to itself or get votes from others. It shall have 1.5 million SET during the snapshot at the beginning of the next cycle, and it can vote for its candidate nodes as well as get votes from others.

II Voters

It’s necessary for Voters, as equity owners to participate in the normal operation of the chain. Voters can select qualified block procedures through their equity to ensure the normal of Block Producing.

The votes number of a voter can cast comes from the total SET holdings (Fractions are rounded down) in his account during the snapshot at the beginning of the cycle.
A voter can vote for different people or vote for one-person multiple times until his available votes for that cycle are used up.
The available votes number is reduced and cannot be reused once votes are cast.
Voting in each cycle is independent and requires voters’ participation every week to maintain the normal operation of the chain.
A voter may vote to any producer that has the right to be voted on (initial available votes are greater than 1 million SET).

III. DPoS Rewards

Producers and voters are both equity owners and should be rewarded correspondingly for the contribution they made to ensure the normal operation of the chain.

Block producer can be rewarded corresponding for their normal block producing.
Voters who voted to this producer should be rewarded correspondingly.

Investment of the producers

Hardware investment: recommended configuration by the official:

The fixed IP is required for the supernodes. It is recommended to use the: 4 cores, 16G memory, 1TB SSD hard disk and above 10Mbps bandwidth based on the current data scale. At least one co-configured backup node with browser, RPC and other services to the public is needed at the meantime.

According to such hardware configuration requirements (the network is charged according to network trafic):

The rent for amazon cloud is about $2,900 a year
The rent of Aliyun is about ￥12900 / year

Operation investment: 1 part-time technic staff for operation and maintenance: ￥3000~5000 / month.

Output for Producers and voters

More than 10% SET from The Sustainable Mining will be rewarded for BP nodes. The output of current mining cycle (the second cycle of The Sustainable Mining) is 1.5 million SET per day, then at least 150,000 SET can be obtained by all BP nodes (including candidate nodes). The 150,000 SET rewards are divided into two parts: BP reward and voting reward which 80% are for BP reward and the rest 20% for voters are divided according to the proportions. The SET rewards obtained by both block producers and voters shall follow the lockup rule of the sustainable mining, that is, 80% will be locked in the second cycle, and the remaining 20% can be circulated.

Produces’ BP rewards:

21 BP nodes and 7 backup nodes can be rewarded according to the rules, and the rewards scale is determined by their ranking result according to the votes number and BP rate, etc. The weight coefficient from the first to the 28th is as follows:

100,95,94,93,92,91,90,85,80,75,70,65,60,55,54,53,52,51,50,49,48,45,42,39,36,33,30,27

Total weight: 100+95+90+... 33 + + 30 + 27 = 1754

Which means, in the second cycle of the sustainable mining:

The SET rewards of each week for the top 1 node account during the ranking list are: 100/1754 x 105W x 80% = 47890SET / week
The SET rewards of each week for the last node account during the ranking list are: 27/1754 x 105W x 80% = 12930SET / week

Voters' voting rewards:

If a user cast n votes for a candidate and the total votes of this candidate is m (including the mortgage and the votes cast for himself), then in the second cycle of the sustainable mining:

The SET rewards this user can obtain by voting for the Top 1 node are: 100/1754 x 105W x 20% x n/m = 11970 x n/m (SET/week)
The SET rewards this user can obtain by voting for the last node are: 27/1754 x 105W x 20% x n/m = 3232 x n/m (SET/week).

As can be seen from the formula, voting reward a user can get depends on his voting proportion for a certain node, and also not node ranked first will get the highest return.
The profit for the nodes at the subsequent year (4 cycles) is given by follows for reference (in which the mining output decreases by 50% in the second, third and fourth cycles, and 25% in the fiSETh cycle):

The Cycle (Sustainable Mining)	Cycle 2	Cycle 3*	Cycle 4*	Cycle 5*
Period	From Jul. 16th, 2019	From Otc.14th, 2019	From Jan. 12th, 2020	From Apr. 13th, 2020
Total output	1050	525	262.5	196.875
Total rewards for BP nodes入	105	52.5	26.25	19.69
Total rewards for BP accounts (80%)	84	42	21	15.75
Total rewards for voting users (20%)	21	10.5	5.25	3.94
The rewards for the top 1 node account	4.789	2.395	1.197	0.898
The lockup amount (rewards) for the top 1 node account	3.83	1.915	0.958	0.718
The(rewards)amount in circulation for the top 1 node account	0.96	0.48	0.2395	0.1795

The unit above: 10,000 SET/ week
The period with * means that the rewards for this cycle are not less than 10% of the total output and only 10% is calculated here.