Membership Reward PF (PF_R_00-000-A)
Voting Period : Nov 30th, 2018 ~ Dec 6th, 2018
Proposal is approved!
Congress Members 1375 Total Votes 1361
- 1339 (97.38%)
- 16 (1.16%)
- 6 (0.44%)
- 14 (1.02%)
Thus, your rewards will be calculated starting 13:00 on December 7th.
You will receive the first Reward in about 10 days.
Then it is estimated to be every 4 weeks beginning with the second set of Rewards.
- Effective date
- If the proposal is approved, execution starts at 13:00, December 7th, 2018 (UTC+09:00).
It will be executed during 6,307,200 blocks (approximately a year)
- The amount of issuance
- 160,833,600 BOS
- Voting Schedule
- Start : November 30th, 2018 13:00 | End: December 6th, 2018 13:00
※ KST standard: UTC +09:00
- Conditions for approval of proposal
- A/C − B/C ≥ 0.1
A: The number of “Agree” votes
B: The number of “Disagree” votes
C: The number of Members as of end of voting
- The purpose of Membship Reward PF
- The Membership Reward PF proposal aims to revise the reward system proposed in WP1.0. If the proposal is approved, the Membership Reward will replace both the Confirmation and Freezing Reward. The budget for the Membership Reward will be the same as the total budget of Confirmation and Freezing Reward.
- Calculation of Membership Reward
- Commencement of Membership Reward calculation: 13:00, December 7th, 2018 (UTC+09:00).
The amount of Membership Reward per member per 17,280 blocks: 440,640 BOS X (The number of frozen BOS in Frozen accounts linked in a Membership account) / (The total number of frozen BOS in the BOSnet).
The amount of Membership Reward per member will be calculated every 17,280 blocks (approximately daily). For calculation, every Member’s frozen BOScoin will be counted every 17,280 blocks. The number of frozen BOScoin will be included in the counting if only BOScoin remains frozen during the 17,280 blocks.
- Distribution of Membership Reward
- Membership is required to receive Membership Reward.
Membership Reward will be distributed to Membership account.
The first distribution of Membership reward will include approximately 10 days of rewards.
From the second distribution of Membership reward will include approximately 28 days of rewards.
- 1) Details of Membership Reward: Why it has to be changed
- Now, let’s look into the proposal. Why can’t the community receive the reward as suggested in the Whitepaper 1.0?
First, security issues. If you are a sincere coin enthusiast, you must have heard about the Howey test. This test shows whether or not a coin is classified as security. The bolts and nuts of the test check whether or not you can receive reward without doing any work. Remember freezing reward? Sounds familiar? This is one of the reasons why we propose to revise the old reward system. Reward should be something you earn by contributing something to the community. And, we plan to redesign the reward system based on this principle.
Second, regulatory issues known as Know-Your-Customer, KYC. BOScoin completed ICO without KYC because at that time there were no requirements regarding KYC. However, Swiss Authority (Financial Market Supervisory Authority (Finma)) recently conducted exhaustive investigation on all ICO cases. And they requested that KYC be conducted. We want you to understand that we’re trying to survive from the unpredictable changes in regulation. Indeed, we’re proactively seeking ways to comply with regulations. The good news is that KYC completes BOScoin’s legitimacy, and it also enables Congress Network to achieve one-person one-vote. Mainnet is becoming decentralized in terms of governance. This means you are participating in the decision-making process just as much as any other member of the community. The voting right cannot be delegated to others. Proudly, no other coin has achieved this before. Of course, we understand that you worry about your anonymity by doing KYC. But please don’t. Your information will be encrypted, and no one has access to the data stored. We will announce the details of the KYC process in the near future.
Lastly, members need to delegate node operation to BlockchainOS for the time being. The delegation is necessary until we can ensure Mainnet remains stable and secure with public members running nodes. It wasn’t an easy decision for us to open the Mainnet without public node operation even temporarily. However, we decided to launch Mainnet with voting and reward system first, and then open node operation once verification in Testnet is completed. Governance decentralization first, and consensus decentralization on its way. Until then, the community needs to delegate the operation to BlockchainOS for the time being. While we are operating nodes, we’ll be able to announce specifics of node operation.
- 2) Details of Membership Reward: What’s changed?
- Basically, this is a proposal on how membership should be defined and rewards be distributed.
We propose that both freezing and confirmation rewards are integrated into membership reward.
You are no longer able to receive any reward in exchange for just freezing your coins.
Instead, only members receive membership rewards. Then, 1) who are the members?; 2) What are prerogatives of becoming a member? ; 3) And how much will they receive? You will be able to acquire membership by conducting three activities: Conduct KYC, designate one of your accounts as Membership account, agree with delegation of node operation, and freeze at least 10,000 BOS. By becoming a member, you are qualified to vote.
This is the most important change. You contribute to the community by completing four activities to complete Membership, and then earn your voting right and rewards in return for your participation. Your rewards will be distributed proportional to the amount of BOScoin you freeze. The first distribution of Membership reward will occur ten days after this proposal is approved. Afterward, members will be rewarded about every four weeks.
The minimum amount of BOScoin you need to freeze will be just 10,000 BOS. We set the minimum amount of BOScoin small enough so that we can invite new members into Mainnet. The more members in the community, the more decentralized Mainnet will ultimately become.
Another important thing to note is budget for the reward. Whitepaper 1.0 promised two kinds of rewards, freezing reward and confirmation reward to be distributed. The sum of the two rewards’ budget, 160,833,600 BOS will be entirely allocated to the budget for membership reward. Thus, there is no additional inflation caused by this new reward proposal.
The amount of membership rewards will be counted daily and calculated as: 440,640 BOS X (The number of frozen BOS in Frozen accounts linked in a Membership account) / (The total number of frozen BOS in Frozen accounts linked in Membership accounts in Mainnet)
Please remember that no cost is considered here for operating a node. So, there should be some additional savings for you. The transaction fee will be distributed the same as before. We will announce the details of reward distribution schedule in the near future as well.
- 3) Reward comparison between the old and new reward system
- Now, let me explain why someone can gain profit of 32% instead of 10% under the new system.
For example, if Alice freezes 10,000 BOS, she would receive about 1,000 BOS as freezing reward according to the Whitepaper1.0.
However, she would get nothing in the proposed system. But if she signs up for membership by going through KYC, freezes 10,000 BOS, and agrees with delegation, Voila! She is now a Member of BOScoin, and according to the distribution schedule, she will start to gain membership reward, which should be about 3,200 BOS every year.
In short, Alice’s profit will increase from 10% to 32%.
Let’s imagine another case. Say Bob owns 40,000 BOS.
In the old reward system, he would receive freezing reward and confirmation reward if he operates nodes.
Resultantly, he would receive 13,300 BOS annually. That’s a total number of his freezing reward and confirmation reward. However, under the proposed system, he will receive about 13,000 BOS every year. So Bob’s profit will decrease about 300 BOS per year. However, he doesn’t have to pay expenses needed to operate a node.
The profits that I used in these examples were based on the following assumptions:
1) All 500 million BOScoin is frozen.
2) 96% coins are stored in accounts having more than 40,000 BOS and the rest having less than 40,000. This assumption is based on BOS Radar as of Aug. 2018.