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The Power Node Reward System: A Detailed Flow Analysis

The Power Node Reward System: A Detailed Flow Analysis

Reward System Overview

The Power Node Reward System within the Power DCloud operates on a meticulously structured flow that aligns with the epochal framework of the network. The model incentivizes consistent participation and penalizes underperformance by incinerating rewards that would otherwise be allocated to non-compliant nodes. Herein, we explore the sequence of events and the associated formulas integral to the reward system.

Epoch-Based Reward Flow

1. End of Epoch 0

An epoch ends after a predetermined set of blocks (100 blocks) or a duration of one hour, depending on which threshold is met first. At this point, the system evaluates the performance of each node.

2. Beginning of Epoch 1

A new epoch commences, marking the start of a fresh cycle for nodes to contribute to the network's operations and validate transactions.

3. Payout for Epoch 0

The epoch 0 payout is determined and distributed according to the total epoch payout and the equal fee received by all nodes, reflecting Power DCloud's synchronous consensus model and ensuring fair rewards for nodes that successfully participated in block validation.
Rewards are allocated for Epoch 0 based on node activity. The total payout (P) for active nodes is the commission (C) earned from transaction fees, smart contract execution, and data storage services.

4. Collection of Reports for the Current Epoch

Throughout Epoch 1, nodes continue to perform their assigned roles while the system gathers operational data, ensuring all nodes contribute equitably.

5. End of Epoch 1

Epoch 1 concludes under the same conditions as Epoch 0. Here, the network evaluates node contributions to prepare for the next reward distribution.

6. Beginning of Epoch 2

Epoch 2 starts, continuing the cycle. Nodes are expected to maintain or enhance their performance to secure their rewards for the next payout.

7. Payout for Epoch 1

Rewards for Epoch 1 are processed and distributed. However, there is a stringent condition applied: if a node fails to validate all blocks in the epoch, it forfeits its reward:
  • If a node validates all blocks: P = C
  • If a node misses any block: P = 0 (and the reward for that node is burned)

Reward Distribution Mechanics

The Power DCloud utilizes a synchronous consensus mechanism, ensuring all active nodes are poised to receive equal commissions (CC). This commission is calculated as:
C = T total / N active
Where T total​ is the total value of transaction fees generated within the epoch and N active​ denotes the count of nodes that fully participated. If a node underperforms and fails to validate all epoch blocks (N performance < N active), its reward (P N performance​​) is eliminated from the distribution and burned. This rigorous approach underlines the network's commitment to reliability and ongoing engagement from its nodes.

Participatory Consensus and Reward Finality

The synchronous consensus mechanism of Power DCloud not only encourages uniformity in rewards but also promotes collective responsibility. By requiring all nodes to participate in the entire block creation process throughout an epoch and burning the rewards of non-compliant nodes, the network emphasizes the importance of reliability and constant engagement.
We encourage our community to examine this flow and provide their insights. As we progress towards the mainnet implementation, we acknowledge the significance of community input to refine and perfect this reward system. Your active contribution ensures the resilience and longevity of the Power DCloud ecosystem.

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