FLETA’s new Proof-of-Formulation consensus algorithm consists of block generators (known as Formulators) that propose blocks to be appended on the blockchain. For each block that is successfully proposed, Formulators are rewarded in FLETA tokens for their work.

All FLETA token holders may serve as Formulators granted that they stake and lockup a certain amount FLETA tokens for a set period of time in a “Formulation Account”. When the requisite amount of FLETA tokens has been locked, they may join the network as a Formulator node and start generating blocks to earn FLETA coins.

Formulator Rankings

Those operating Formulators for a set period of time can go on to improve the overall “performance” of their nodes by upgrading their ranking to earn more block rewards.

Four formulator nodes that have been operating for longer than a month can be combined together to form a new group Formulator ranking known as a Formulator Sigma.

When there are two Formulator Sigma’s that have been operating for longer than a month, these two Sigma’s can combine to form the highest ranked formulator known as Formulator Omega. (To upgrade the nodes to next level, such as Sigma and Omega, the same person should hold and operate the nodes.)

Formulators -> Formulator Sigma -> Formulator Omega

Higher ranked formulators can earn more block rewards for each block generated, as well as operate with lower costs. This ranking system works to incentivize Formulators in continuing the operation of their formulators as they gain greater rewards for doing so. At the same time, this also helps mitigate their risks of holding tokens as it provides an additional source of revenue through mining.

Mining Rewards & Return on Investment

Any FLETA tokens earned as block rewards can be withdrawn and sold immediately through exchanges. As the lock of a certain amount of FLETA tokens is required to become a formulator node, FLETA’s block mining model provides a stabilizing effect to the number of tokens available on the market at any given time. The greater number of formulators that there are within the network results in more FLETA tokens being locked up, and this serves as a velocity and supply sink that helps stabilize the token price.

As more Formulators enter the network, rewards decrease as there will be less opportunities for generating new blocks. In addition to the mining rewards, formulators can also gain a higher return on investment through the increased value of FLETA tokens.

Transaction Fee Rewards

On top of mining rewards, Formulators also earn a percentage of the fees from all of the transactions made throughout the network. Therefore, nodes who join the network early will be compensated with earning a higher percentage of total block rewards and transaction fees throughout the network.

Airdrops & Token Swaps

FLETA’s reserve token funds will be airdropped via Token Swaps for outstanding DApps that are built and launched via FLETA’s ecosystem. This will provide a further means of revenue for token holders and Formulators within FLETA’s network.

Formulator Generation Service for Token Holders & Developers

The participants in the FLETA ecosystem are categorized as DApp developers, DApp users and Formulator operators (miners). One of the principal forms of revenue that is central to FLETA’s business model includes the “Formulator Generation Service”. This service provides token holders and developers with the opportunity to run Formulator nodes without having to purchase the hardware required for doing so.

Token holders may instead pay a nominal fee each month where FLETA hosts the Formulator node on their behalf, where token holders earn the revenue streams granted to the Formulator.

The Formulator Generation Service has been set at a very reasonable monthly rate, with the fee payable in either BTC, ETH, FLETA tokens, Korean Won or US Dollar. Payments made in FLETA tokens will receive a significant discount. This monthly maintenance fee is a fundamental revenue stream for FLETA and a key part of the core business model. FLETA get revenue from these formulators as discussed above, as well as gets an additional stream through providing tech support to DApp developers for a minimal/reasonable price.

Conclusion

Opportunities are available to all FLETA token holders and Formulators for earning additional revenue through staking their FLETA tokens and running a node. The first year of operation will be especially lucrative to Formulators as the highest rewards and opportunities will be available during this crucial period.

From becoming a high ranked formulator, to earning multiplied token rewards, as well as a percentage of total transaction fees, there are further airdrop and token swap opportunities that nodes will be able to benefit from.

This opportunity will not be exclusive to only those who have the hardware and ability to run the software required for nodes, through FLETA’s Formulator Generation Service, all token holders have the opportunity to become a Formulator for a low monthly fee.

If you would like to learn more about Formulator nodes and our block reward model, please feel free to get in touch with us through our Telegram group. You can also learn more about FLETA through our website, white paper, and tech paper.