Ammeris Blockchain Foundation goes with Staking as a way to incentivize support and distribute inflation

By: Ammeris Blockchain Foundation
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Ammeris Portal
Ammeris Portal
HALIFAX, Nova Scotia - Sept. 20, 2018 - PRLog -- Ammeris have researched many models in relation to the distributions of rewards in the design of the protocol.

Do the block rewards go to the miners? No.

In fact, all the block rewards go to stakeholders through the Ammeris Portal. However, transaction fees in the form of gas will go to the data centers that operate the ledger as we want them to live off transaction fees, not subsidies. We believe this is a better division of incentives between miners and coin holders.

It is our believe that staking Ammeris Coin is an important part of the blockchain's governance model, as each coin translates into an important vote on the Ammeris Blockchain. While this is often a staple of proof-of-stake (PoS) networks, the underlying security function on the ledger remains PoW. Instead, staking empowers coin holders with the ability to offset inflation in the system (think of this as you would if you deposited your money in the bank, and the bank pays you a rate pegged to inflation), and provides them with an opportunity to vote on matters important to the foundation, which is after all, delegating consensus. Call it delegated PoW, if you will.

Ledger immutability is often determined within the blockchain community by the cost of the block reward and the collective computational power or cost of the energy powering the system. Over the past few years however, we have witnessed many networks get taken over by mining cartels, experience significant hashrate volatility or get dominated by ASIC hardware - all of which leads to intense centralization. Therefore we are less inclined to believe in the value of the block reward and the cost of the energy entering the system as a good indicator of security or decentralization - especially when it comes to altcoin networks. Instead we believe a better incentive to grow networks and keep things thriving is to ensure miners or data centers live off transactions fees, not block rewards.

More importantly, trustless models are by and large incompatible with a sustainability agenda and the imposition of any power composition requirements (wind, solar, hydro or fusion). Again, we believe the high cost of securing blockchains through radical decentralization, block reward, and energy heavily outweighs the security benefits or utility that such networks hope to realize. Besides, it remains to be seen if any of these "secure" or "decentralized" networks like Ethereum can become commercially viable. What happens when you remove the block reward subsidy? Will Ethereum miners live off transaction fees? With only 8 dApps with more than 300 users being stated, we don't think so.

Because of these challenges and our focus on sustainability (hence our incentive to use efficient hardware and moderate hashrates) we have introduced a second layer protocol whereby staking sets the necessary incentives to support the network, all while ensuring the risks of forking or project abandonment are minimized. The inflation built into the system is proportionally distributed to incentivize stakeholders (as any good economic system should do) with no minimum stake or requirements. Lastly, the block rewards set by the tokenomics (monetary policy) are fixed, with no room for change to the model - lest confidence is lost and the mission to breakdown boundaries becomes jeopardized.

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Tags:Blockchain, Infrastructure, Ammeris, Proof Of Work, Proof Of Stake, Miner Rewards, Ethereum, Hashrates
Industry:Computers, Environment, Technology
Location:Halifax - Nova Scotia - Canada
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