2021-02-17 19:26:32
A Geek's guide to the Larvanet’s Economics
Marlin is a layer-0 scaling protocol that improves the performance of blockchains & dapps regardless of their consensus algorithm. As the network evolves, we'd like to explain the Larvanet's economics, staking mechanism & contract design.
Economic Model
Being a stake-based permissionless network, the economic model involves two key components:
1. Requiring nodes in the network to stake Marlin tokens.
2. Rewarding nodes for the work done.
Staking
Contracts used in the Larvanet have 2 primary modules:
1. Cluster registry: An operator address is used to manage on-chain records
2. Delegation mappings: POND or MPond are delegated to the operator address which are recorded in the mapping contracts via Stashes
Stashes are used to store POND, MPond or LP tokens & delegate to operators. Unbonding period is 30 days. A stash needs to be undelegated in whole. Partial undelegation using multiple stashes is possible. A stash may be redelegated to another operator without undelegation.
Network design
Marlin gateways find the closest nodes of the different clusters (with greater than 0.5 MPond in delegations) via a standard P2P discovery process. They are chosen using probability distribution.
In the Larvanet, clusters are chosen with a probability proportional to sq root of the sum of delegations they receive. Only the first 3 clusters to deliver content to receivers are sent receipts which can be deposited for rewards.
Tokenomics
The Marlin token economy consists of two tokens POND and MPond. 1 MPond can be minted by swapping 1,000,000 POND in a bridge contract.
Maximum supply of POND = 10 billion
Total allocation towards staking rewards = 21.8% of POND’s total supply.
There’s no difference between self-staking or external delegations in Marlin. Every cluster only receives delegations from holders of eligible tokens which includes POND and MPond initially.
Token Distribution
For a fair distribution of Marlin tokens and Marlin nodes, tokens were/are being distributed through:
1. Participation in the Eggnet.
2. FlowMint: Delegating DOT, ATOM, NEAR etc to validators who install Marlin gateways.
Larvanet allocation
Initial rate of annual inflation (iROI): ~1.03% of POND
Tokens to be distributed over a year per iROI: ~102,766,667 POND
Tokens to be distributed daily per iROI: ~281,553 POND (102,766,667/365)
Reward distribution
The 281k POND tokens are distributed once every epoch (24 hours).
APRs for POND could hover around 900% in the beginning and settle between 30-60% depending on the scale of participation.
Dive into our blog for more details: https://www.marlin.pro/blog/geeks-guide-to-the-larvanets-economics/
Spread the word: https://twitter.com/MarlinProtocol/status/1362075788388880390
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