As we all know, REI Network adopts the PoS consensus mechanism, and staking is the key to making REI
As we all know, REI Network adopts the PoS consensus mechanism, and staking is the key to making REI Network’s native token $REI a value store. In theory, staking will encourage nodes to hold $REI as much as possible and use it to verify transactions. The more nodes there are, the safer the operation of the REI Network will be.
For $REI holders, the motivation for staking comes from the incentives of the system, and the rate of staking rewards on REI Network will vary according to the commission rate of super nodes and the total number of staked votes in the entire network, which is up to 10%. In the environment of low global interest rates, the hold-to-earn mechanism can attract more people to participate in staking, further stimulate the market demand for $REI, expand the base of long-term holders and investors, and increase the value of $REI.
In the first phase of staking of REI Network, although certain achievements have been achieved, there are also potential security issues due to unstable node status, and some nodes are not actively operating due to the distribution of network rewards. For this reason, REI Network ushered in a major upgrade — “Better POS”. This article will have an in-depth analysis of the achievements and existing problems of REI Network’s first phase of staking, and interpret the performance exploration of the “Better POS” hard fork upgrade.
The first phase of staking on REI Network
Since REI Network officially introduced the super node operation on July 13, token holders have been rewarded by verifying blocks. In principle, any member of the community can participate in node election, staking, verify blocks and obtain rewards, rewards are usually distributed according to the proportion and the number of tokens held. Besides, the foundation-supported staking helps further motivate super nodes according to the dimensions of staking duration and community contribution.
With the joint efforts of the community, the first phase of REI Network nodes achieved a total network staking of more than 150 million, and operated stably for more than half a year, truly realizing free, green, lightweight, and decentralization. Since REI Network has a low threshold for super nodes participating in staking (only need to stake 100,000 REI), it has been widely welcomed by the community.
However, there are also some shortcomings in the first phase of REI Network staking, such as the distribution of network rewards. Due to the Foundation’s incentive staking strategy, the current total amount of network staking objectively squeezes out part of the rewards of users and nodes, which affects the expected rewards of participants in the network to a certain extent. For example, without the support of the foundation, the proportion of voting and rewards of some super nodes may drop significantly, which will further affect the staking rewards of community users, causing a vicious circle and seriously affecting the enthusiasm of online nodes and potential community nodes. The above problems have hindered the enthusiasm of the community to participate in REI Network staking to a certain extent, thus hindering the development of REI Network.
As a new public chain, REI Network is good at continuous development in self-iteration and performance exploration. Considering the current status of network development, the foundation put forward the proposal of “REI DAO Proposal #5 #Better PoS: Jail Mechanism and Lower Network Protection Mode Threshold” and has been passed by the REI DAO.
REI staking upgrade — Better staking
Through the content of the proposal, we know that the specific changes that Better staking will make are as follows:
1) Adjustment of the threshold of protection mode
Lower the REI Network protection mode threshold from 10%(100M) to 7%(70M). According to the current 150M votes in the entire network, when the node dividend is 100%, the corresponding APR for stakers is 6%, and when this threshold is lowered to 70M, the APR for stakers will increase to around 12%.
The increase in per capita dividend rewards, on the one hand, will further attract users who hold $REI to staking and raise the enthusiasm of the community to participate in maintaining network security, thus enhancing the network value of REI Network. $REI is not only a practical public chain native token but also a value storage tool.
2) Jail Mechanism
During the long-term operation, some super nodes on REI Network affect the stability of the network due to hardware facilities and operational capabilities, such as block loss or even stop producing blocks. To solve this problem, this upgrade also introduces the penalty mechanism — Jail Mechanism.
If a validator misses blocks ≥ 300 in one day, the node will be banned from producing blocks and can choose to pay a fine of 20,000 REI to re-participate in block production. The 20,000 REI fined will be directly locked in the black hole address, and permanently cannot be withdrawn. Validators can also choose to withdraw all tokens and quit the node election. At the same time, during this period, the tokens and rewards staked by users and nodes will not be affected, and they can be freely withdrawn or reinvested in other nodes.
Under the premise of ensuring the reasonable interests of nodes and users, this punishment method restricts the evil and inaction of super nodes, and can effectively prevent the problem of negative verification of super nodes.
3) Introduce support for the snapshot function
The PoS consensus mechanism has gradually become the mainstream consensus algorithm mechanism of the blockchain, but the value of the native tokens of most blockchains has not been deeply mined because of the PoS consensus algorithm.
In addition to being committed to becoming the most friendly smart contract platform for users and developers, REI Network is also good at treating problems from the perspective of users and validators. Super nodes have the basic functions of processing transactions, communicating with other nodes, and storing transaction history. By setting penalty mechanisms and adjusting thresholds, a perfect “Reward and Punishment” Mechanism” will be realized, which can make REI Network more secure and stable.
Join the REI Network Community
REI Network is an EVM-compatible public blockchain. As an Ethereum para chain, it owns the features of lightweight, free and dev-friendly. REI Network is to effectively solve the current high-cost and low-efficiency problems of public chains. Therefore, GXChain can achieve free, low-cost development, and rapid migration of applications, and can be shared and symbiotic with the EVM ecosystem, also supporting the development of Defi, GameFi, and NFT.
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Better PoS: Enhance the Value Storage of Token Through Rewards and Penalties System was originally published in REI Network Project on Medium, where people are continuing the conversation by highlighting and responding to this story.
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