Staking

Staking

Staking serves as a foundational aspect of Arichain, enabling network security and consensus through the DRPoS (Delegated Random Proof of Stake) mechanism. By participating in staking, both BP and BO play a crucial role in maintaining and safeguarding the network, ensuring long-term stability, performance, and success. The DRPoS chain relies on economic value rather than computational power, providing a more energy-efficient and scalable system.

DRPoS (Delegated Random Proof of Stake) represents a fourth-generation approach that enhances the existing method. In this mechanism, 17 elected master nodes (BP) and randomly selected 6 (BO) collaborate to generate blocks in random order to maintain the integrity of the entire blockchain. This approach supplements the previous method and aims to provide a more robust and secure network infrastructure.

In the DRPoS system, token holders stake their tokens to vote for BP or act as BO to generate new blocks, thereby contributing to the health and growth of the Arichain ecosystem for developers and users.

Arichain incentivizes BP, BO, and token holders who vote (stake) for BP through gas fee rewards and inflation rewards for newly issued ARI tokens. Newly issued ARI tokens are distributed to BP and BO annually at a fixed rate, and once block verification is completed, fees and inflation rewards are distributed to BP and BO. BP retains a portion of the rewards as commission, while the remainder is distributed to BO and the delegators.

Some of the generated block rewards and transaction fees are allocated to the storage fund. As time passes, the storage capacity that nodes must maintain increases significantly. From the perspective of a full node, which must retain all blocks from the genesis block to the current one, time and storage capacity are directly proportional. Therefore, to ensure the long-term sus tainability of the blockchain, there needs to be an economic incentive capable of accommodating extensive storage, even as time progresses. As a result, Arichain aims to create a storage fund to provide appropriate storage rewards to nodes participating in the network in the future

Details

1. Annual Inflation Reward, AIR:

AIR = TotalSupply × InflationRate

1. Storage Fund Allocation, SFA:

SFA = AIR × 0.1

1. Block Producer Inflation Reward, BPIR:

BPIR = (AIR - SFA) × 0.7

1. Delegator Reward, DR:

DR = BPIR × 0.9

Individual Delegator Reward = DR × (Individual Delegator's Votes) ÷ (Total Votes from All Delegators)

1. Block Producer Actual Inflation Reward, BPAIR:

BPAIR = BPIR × 0.1

Individual BP Actual Inflation Reward = BPAIR × (Individual BP's Votes) ÷ (Total Votes from All BPs)

1. Block Organizer Inflation Reward, BOIR:

BOIR = (AIR - SFA) × 0.3

Individual BO Inflation Reward = BOIR ÷ (Total Number of BOs)

1. Transaction Fee Reward, TFR:

TFR = Total Transaction Fees Included in the Block

1. Block Producer Total Reward (BPTR):

BPTR = Individual BP Actual Inflation Reward 
+ 
Total Transaction Fees from All Blocks Validated

1. Block Observer Total Reward (BOTR):

BOTR = Individual BO Inflation Reward 
+ 
Total Transaction Fees from All Blocks Validated

In this reward formula, 10% of the annual inflation reward is allocated to the storage fund. The storage fund is used to securely preserve blockchain data in the long term and compensate node operators for their storage costs.

The introduction of the storage fund is expected to increase the long-term sustainability of the Arichain network and provide node operators with stable rewards. Additionally, it is expected to enhance the trust of users by ensuring the integrity and availability of blockchain data.

The inflation rewards for BP and BO are calculated based on the remaining inflation rewards after allocating to the storage fund.