Voi’s Block Rewards — 1B $Voi
Hello Voiagers and Future Explorers,
We are excited to unveil more details about Voi’s innovative block reward distribution model, a cornerstone of our community-driven blockchain.
This model is designed to ensure sustainable growth, robust network security, and long-term engagement by rewarding those who actively contribute to Voi’s development.
A Community-Centric Approach to Rewards
Voi is committed to decentralization, democratic governance, and true ownership. Our block reward model reflects these values, ensuring that network participants are rewarded fairly and consistently over time. By distributing block rewards across 20 years, we prioritize both early incentives and long-term stability, encouraging ongoing community participation and support.
Block Rewards Launch on October 30th
We’re thrilled to announce that block rewards are planned to commence on October 30th, marking the final milestone in Voi’s mainnet rollout.
This carefully chosen date ensures that all community members have the opportunity to set up their nodes and stake their earned tokens from various pre-launch initiatives. By the time block rewards begin, everyone will be ready to fully participate in securing the network and earning rewards.
How Block Rewards Are Structured
- Total Token Allocation: A total of 1 billion tokens are designated for block rewards, distributed to incentivize node operators and support network security.
- Distribution Period: Tokens are distributed weekly over 20 years, aligning with Voi’s vision for long-term sustainability.
- Decreasing Reward Model: The block reward distribution follows a geometric series, ensuring that rewards gradually decrease over time:
- Initial Weekly Distribution: The first week starts with a reward of 3,000,000 tokens.
- Gradual Decrease: Each subsequent week, the reward decreases by a fixed ratio, ensuring the entire 1 billion tokens are fully distributed over the 1042-week period.
- Front-Loaded Distribution: Approximately 27.04% of the total block rewards will be distributed in the first 2 years, and about 55.17% in the first 5 years. This approach incentivizes early participation while ensuring long-term engagement.
The Mathematical Model Behind Weekly Distribution
To achieve a balanced and sustainable distribution, Voi uses a geometric series model. This model ensures that the token distribution decreases gradually each week while fully utilizing the 1 billion tokens over the 20-year period.
Geometric Series Formula:
The weekly distribution is calculated using the formula:
Where:
- a = 3,000,000: This is the initial number of tokens distributed in the first week.
- r (common ratio): A fixed ratio that determines how much the weekly distribution decreases. This ratio is calculated to ensure that the total distributed amount across all weeks sums up to 1 billion tokens over 1042 weeks.
Total Distribution Formula:
The total sum S of the geometric series over n=1042 weeks is given by:
By solving this equation, we determine the exact value of r that fits the distribution needs. This approach ensures a predictable and gradual decrease in block rewards while adhering to the total token supply of 1 billion.
How Users Earn Rewards Each Week
Voi’s block reward distribution model rewards users based on their contribution to the network’s block production. Each week, the total block rewards are distributed proportionally among users who produce blocks.
Reward Calculation Formula:
- X is the total number of tokens allocated for rewards that week.
- Y is the number of blocks you produce that week.
- Z is the total number of blocks produced by all participants that week.
Then, your rewards for the week are calculated as:
This formula ensures that users who contribute more to block production receive a larger share of the rewards, incentivizing active participation and maintaining network security.
In short, producing blocks earns you rewards.
How to Produce More Blocks?
Block production on Voi is directly proportional to the number of tokens staked on your node relative to the total network stake.
To maximize your share of block rewards:
- Increase Your Stake: The more Voi tokens you stake, the more blocks you may produce.
- Maintain High Uptime: Ensure your node is always online and operational to avoid missing block production opportunities. This includes renewing your participation keys regularly.
- Use Recommended Specs: Run your node on hardware that meets or exceeds Voi’s recommended specifications to ensure timely block production.
Benefits of the Long-Term Distribution Strategy
- Sustainability: Spreading rewards over 20 years ensures continuous support for network security and stability, reducing inflationary risks and supporting the ecosystem’s growth.
- Transition to Transaction Fees: As block rewards decrease, Voi anticipates transaction fees will increasingly support node operators. This overlapping period allows for a smooth transition, with both block rewards and transaction fees providing incentives as the network matures.
Empowering the Community Through Governance
Voi is not just a blockchain; it’s a community driven blockchain.
Our governance framework allows community members to propose and vote on changes to the block reward distribution model if needed. This ensures that Voi can adapt to new challenges, market conditions, or technological advancements:
- Policy Flexibility: The community can adjust key parameters such as the distribution ratio, the rate of decrease, or the distribution period through a transparent governance process.
- Ensuring Network Health: By involving the community in these critical decisions, Voi maintains a dynamic, resilient, and inclusive blockchain ecosystem.
Important Note on Timeline
Please be aware that all dates provided are estimated and subject to change. While we aim to stick to this timeline, unforeseen events could arise, potentially pushing back these milestones. Rest assured, the Voi Foundation, along with our dedicated community, will be working tirelessly to meet these dates and ensure a smooth rollout.
Join the Voi Community
Voi Network is built, run, and owned by its community.
We invite developers, node operators, and blockchain enthusiasts to join us in building a decentralized future. Your contributions will help secure the network, shape its evolution, and ensure that Voi continues to be a platform where true ownership and participation are rewarded.
Stay tuned for more updates as we continue to enhance the Voi ecosystem and empower our community. Together, let’s build a blockchain that’s designed for sustainability, driven by innovation, and owned by its users.
