IOST Node Election Voting: A Comparison

Node Candidacy Application and Voting Details

Roles within the IOST Community

Community Members / Voters

Definition: Any entity holding at least 1000 IOST to vote.

Any entity holding at least 1000 IOST to vote. Rights and duties: Participate in IOST elections by voting and receive reward share from Servi Nodes.

Node Candidates

Definition: Organizations or individuals who have submitted an application to qualify to be a Servi Node.

Organizations or individuals who have submitted an application to qualify to be a Servi Node. Rights and duties: Contribute development and promotional resources to the IOST network. Gain votes from the community and become a Servi Node.

Servi Node

Definition: Get 0.05% or more IOST votes of the entire network (approximately 10.5M, subject to decrease in future to boost decentralization). There is no fixed cap for the number of Servi Nodes in the IOST PoB consensus mechanism.

Get 0.05% or more IOST votes of the entire network (approximately 10.5M, subject to decrease in future to boost decentralization). There is no fixed cap for the number of Servi Nodes in the IOST PoB consensus mechanism. Rights and duties: Produce and validate blocks, determined by the PoB consensus algorithm. Receive block production and user invitation rewards, where 50% of the block production award is shared with community voters.

Based on the rewards model that includes block production and network fee sharing, there is no hard maximum on total rewards a node can earn.

Rewards and Costs

Servi Node rewards consist of two parts: block production rewards and network income share from inviting users.

Block Production Rewards

Block rewards are paid out from the Annual Block reward pool comprising of 2% token issuance of total IOST token amount + 2% of total IOST token amount distributed from the community ecosystem fund. Servi Nodes will therefore share a pool of 4% (840,000,000 IOST in the first year) with ½ based on blocks produced and ½ based on share of votes received.

Ram purchased with IOST will be burnt to offset token issuance from the annual annual block reward pool.

How does the IOST network compare to the degree of inflation on EOS and other networks?

On the IOST network, iRAM is purchased from the IOST system. The fee paid by the user to purchase the iRAM will be burnt (destroyed). In addition, the cost of account creation will be burnt, which will reduce the IOST circulation.

In the Bitcoin/Ethereum network, the user purchases resources in the form of paying the Tx fee/Gas to the miner, where the miners earn block rewards and thus increases the token supply.

In the IOST network, when developing DApps, developers will purchase iRAM resources, and the more frequent iRAM is bought and sold, the more IOST fees will be destroyed, therefore reducing IOST circulation.

EOS’s starting RAM resource is 64G, IOST’s starting iRAM resource is 128G, and as iRAM increases rate faster, there will be more storage resources for developers to buy and sell. That is, more IOST fees are destroyed, and more circulation will be reduced.

EOS RAM trading fee is 1%, where IOST iRAM trading fee is 2%. EOS will destroy 1% handling fee of RAM, Where IOST destroys 2% iRAM fee + IOST network account fees. Therefore, the IOST network has a higher degree of deflation than EOS.

Example of Block Production Rewards:

Assume that the total number of votes for all node candidates is 10% of the total IOST circulation, 2.1 billion IOST.

Assume that the number of votes for a Servi Node is 105 million IOST, accounting for 5% of the total number of votes of 2.1 billion IOST. Then the block production rewards for the node in the first year is approximately:

Total circulation 21,000,000,000 × 4% × 5% = 42,000,000 IOST

The digital currency market is currently in a bearish period. Current corresponding price is about $200,000. Based on average price in the first half of 2018, this equals about $2.75 million.

For individual Servi Nodes, their rewards and ROI will be dependent on several factors including how much IOST tokens they personally stake versus how many votes they receive from the community, how many users they invite and on-board onto the IOST network and also general operating costs and resources they dedicate to promoting their node and contributing to the ecosystem.

Invitation and Fee Rewards

In order to encourage Servi Nodes to contribute in building the IOST ecosystem and increase users, invitation and fee rewards are paid to Servi Nodes based on the network usage of users who are invited to join the IOST network by that Servi Node.

iGAS: Users can stake IOST to obtain iGAS. The Servi Node of the user receives 10% share when a user uses iGAS. iGAS rewards can be rented or sold to any user or developer.

Users can stake IOST to obtain iGAS. The Servi Node of the user receives 10% share when a user uses iGAS. iGAS rewards can be rented or sold to any user or developer. iRam: A 2% transaction fee is incurred when a user buys iRam. The Servi Node of the user receives 30% of the fee.

A 2% transaction fee is incurred when a user buys iRam. The Servi Node of the user receives 30% of the fee. Account creation. Users will pay a basic fee for creating an IOST account, and the Servi Node who invited this user will receive a 30% share.

Example of Fee Rewards

We estimate the iGAS rewards, the primary source of user invitation rewards:

Based on similar blockchain network data, assuming an average of 100 transactions per second, if 50% of users come from the node invitation, they will generate 1,576,800,000 transactions/year. Assuming that the iGAS market price is estimated as 3 IOST each transaction, then all Servi Nodes will earn 473,040,000 IOST through iGAS rewards each year.

Based on a total vote of 2.1 billion, a node that received 105 million votes is expected to pull 5% of users, and will receive iGAS rewards worth about 23,652,000 IOST.

The digital currency market is currently in a bearish period. Current corresponding price is about $110,000, and the average price in the first half of 2018 is about $1.38 million.

Special Node Contribution Rewards

If a Node makes significant contributions to IOST’s development and marketing efforts, The IOST Foundation will provide all-round support for promotion and technology as well as support from collaborating channels including Berm Protocol (a decentralized content platform with 500k active users), and Berminal (a crypto news app, US Google Play Store news list Top 2 with 50k DAU) to promote the Node’s product and candidacy.

Examples of nodes that contribute to IOST’s development : DDEX

The largest by market share decentralized exchange DDEX (the first decentralized exchange based on the Hydro protocol technology) on the Ethereum network will develop IOST’s decentralized exchanges and participate in node campaigns.

The IOST Foundation will help it promote and get more votes. In addition, it will provide development support for its entire process and help its products get more users after the IOST Mainnet launch.

Node Operation Costs and Minimum System Requirements

CPU: 8 cores

Memory: 16GB

Local storage: 5TB

Bandwidth: 100Mbps

Node operating cost estimate

Estimated cost based on the same configuration as the c5.2xlarge server on AWS:

Server costs: AWS c5.2xlarge server price is $ 0.34 / hour. Estimated at $2,978.4 a year.

AWS c5.2xlarge server price is $ 0.34 / hour. Estimated at $2,978.4 a year. Storage costs: ST1 on AWS is $0.045/ GB-month, which will cost $2,764.8 a year.

ST1 on AWS is $0.045/ GB-month, which will cost $2,764.8 a year. Bandwidth cost: Average AWS price of $0.055/GB, over one-year, a node is estimated to generate $103.2 of upstream data at a cost of $563.2.

Estimated total cost: The cost of one year using an AWS server is estimated at $6,306. Taking into account the cost of operation, tax, maintenance and labor, the actual cost may be around $10,000/year.

Node Election

Rules and Timeline