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xxNetwork: Economic Tweaks – Realtime Failure Deductions


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Intruiging, I love how fast they have responded and how open the issue is discussed and brainstormed. I thought it was also relevant to the current XRPL scaling issues with nodes, which (arguably) is related to incentives, or rather, XRPL's lack of them (vs xx's decision to incentivise & distribute on-chain via algorithmic tokenomics, staking, etc).

Transparency and disclosure – as well as architecture – is everything in this industry. 


An issue that has come to light with the launch of the xx network MainNet is that there are some lower performing nodes running on the network.

In the previous incarnations of the network  — AlphaNet, BetaNet, and ProtoNet — these issues were handled by the team by simply disabling poor performing nodes. This obviously is not possible in MainNet which is controlled by nPoS.  

The community has been discussing this issue since MainNet launch (you can find a very thoughtful thread in the #mainnet-chat channel on the discord). Solutions involving sliding scales of penalties, among others, have been proposed. Overall, it is the team’s opinion that a tweak to the existing solution, along with a client side modification, is the right approach.

To understand the current solution, some details of the economics will need to be reviewed. In each epoch (24 hour period) an amount of coins are awarded (the mechanism for this decision is described in the xx economics paper) and distributed among all nodes.  The portion of these coins awarded to a given node is equal to their portion of total coins earned. For example, if in an epoch award totals 50,000xx, and a specific node got 10,000 points out of a total 10,000,000, they will get (10,000/10,000,000)×(50,000xx) = 500xx (to be split between the validator and nominators).

But how are these points earned?


Edited by thinlyspread
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