Introduction to V SYSTEMS Supernode
Given the experience from Peercoin and the reference to several advantages and disadvantages of Bitcoin, Sunny King released the SPoS consensus mechanism in September 2018 and applied it to V SYSTEMS project. The core of SPoS consensus mechanism, based on the cold minting technology, enables Supernodes as the minting pool in the minting economy and to generate blocks by receiving coins leased from VSYS Coin holders. Unlike Bitcoin and other PoS, Supernodes in the SPoS system could be completely decentralized, and build a decent ecosystem where Supernodes and coin holders co-exist with balance.
What is coin leasing in V SYSTEMS?
For detailed explanation about coin leasing, please refer to the SPoS whitepaper.
1. Introduction to coin leasing
Coin leasing is the way for VSYS Coin holders in the V SYSTEMS public chain to assist supernodes in coin minting, and participate in the self-governance blockchain ecosystem. Similar to cryptocurrency mining, coin holders can earn VSYS Coins during the process.
According to the SPoS White paper, currently the system keeps generating a block every 4 seconds, and each block produces 36 VSYS Coins. The total generation is 777600 VSYS Coins every day. Supposing 15 Supernodes in the beginning, each Supernode will generate 51,840 VSYS coins every day, and all Supernodes are the same.
The above diagram illustrates the role of VSYS Coin in supernode minting as well as the reward sharing scheme by supernodes to coin holders.
Under the protocol of SPoS consensus algorithm, coin holders could lease their VSYS Coins to any Supernode candidates through the leasing function of V SYSTEMS wallet (please note that VSYS Coin is still in the holder’s wallet at this time, supported by the cold minting technology of the SPoS). As a minting pool, the supernode starts to mint VSYS Coins using leased coins and generates blocks to obtain coin rewards. Then the obtained rewards will be proportionally distributed to VSYS Coin holders according to their leased number and time of VSYS Coins.
During coin leasing, however, the leased VSYS Coins are not actually transferred into the supernode’s wallet. This is due to V SYSTEMS’ pioneering cold minting technology, where VSYS Coins are remotely mapped to the supernode. This design brings a very high level of security, as the VSYS Coins remain in the owner’s wallet during the entire coin leasing process.
2. Reward calculation for coin leasing
The basic formula for calculating reward from coin leasing:
MAB = Minting Average Balance (number of VSYS coins with over 1 day of age)
According to the SPoS design, the total number of coins minted by all supernodes in one day is 777,600. Dividing this number with the number of supernodes will result in the number of VSYS Coins minted by one supernode in a day.
There are 15 fully-operating supernodes at the launch of the mainnet. As functions and the ecosystem expand, the number of supernodes will rise to 30 and ultimately 60.
3. List of supernodes
You can find out about the V SYSTEMS supernodes in the supernode market created by V SYSTEMS community fans. Select the one that you are most satisfied with in regards to the vision, reward system and more, then start leasing your coins to the respective supernode to participate in coin minting.
It is the duty for every coin holder to safeguard a decentralized environment. Choosing a supernode that is fostering the growth of the ecosystem is a key to building a stable network.
As a start, the supernode market can be found at vsysrate.com. More sites will be announced, and interested parties are welcomed to build similar marketplace as well.
4. Step-by-step guide to coin leasing
Step 1: In your VSYS Coin wallets, open a wallet for coin deposit.
Step 2: Select the “ Minting ” function.
Step 3: Enter the supernode address (find the coin leasing address of your preferred supernode in the Supernode Ranklist)
Step 4: Confirm