The Governance of the TRON Ecosystem - Crypto Academy / S4W7 - Homework Post for [@yohan2on]

gbenga (73)in SteemitCryptoAcademy • 3 years ago

It is a new week, and I'm going to be participating in the class by @yahan2on. Before going on with the assignment, I want to use this opportunity to say big kudos to all the current professors. Without wasting any more time, I will begin immediately.

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Delegated Proof of Stake

To explain the Super Representative, I need to explain the Delegated Proof of Stake (DPOS). Before DPOS, Proof of Stake was the main consensus mechanism used by a few blockchains to validate transactions but since there were a few flaws in the consensus mechanism, DPOS was launched by Dan Larimer, and it is used by public blockchains such as Steem, Tron, Lisk, Ark, Hive, and many more.

The main aim of DPOS is to increase the speed of transactions as well as give a very democratic method of governance via voting and delegation. Delegates that validate blocks on DPOS blockchains are referred to different name depending on the Blockchain, Steem refer to delegates as Witnesses, EOS refer to delegates as Block Producers (BPs), Tron refer to the delegates as Super Representative and so on. This delegates can differ in number of actively producing block producers required based on vote (although everyone can produce block but to actively produce, the node has to be among the top), for Steem, it is 21 witnesses, for Tron it is 27 Super representative and so on.

The Governance of the TRON Ecosystem

While it is clear now that Tron uses the DPOS consensus mechanism which allow for up to 2000 transactions per seconds, it is very important that the governance in the Tron Ecosystem is explained. Tron Blockchain has two type of block producer roles, which are the Super Representative (SR) and the Super Representative Partner(SRP).

Anyone can apply to be any of these two, and anyone can vote for their favourite block producers, but then, the top 27 block producers on the Tron Network are Super Representatives while the 28th to 127th block producers are regarded as Super Representative Partners, and 128th downwards are super representative candidates.

Super Representatives

Super Representatives are the main Block producers in the Tron Network, these delegates are block producers between 1 and 27 of the list of block producers. Block producers can be voted by accounts on the Tron Network with Tron Power (TP). The TP is determined by the number of TRX staked, which means that unstaked TRX doesn't count in the vote. The votes are counted every 6 hours and new votes overrides the old votes. The Super Representative generates a block every 3 seconds and for every block mined, the Super Representatives get 16 TRX for successfully generating a block. source. The Super Representatives make up the committee in the network and can therefore have the right to start a proposal causing a change on the network, such as transaction fees, block producing reward amount, account creation fee, SR generation rewards, e.t.c.

Super Representative Partners

These are block producers that fall between 28 and 127 based on voting. SRPs can also participate in governance as they can start a proposal just like the SRs source. When a block is created, 160 TRX is shared among the top 127. The Super Representative Partners do not get reward for mining, but they get vote rewards.

Reward calculation:

To know the total reward distributed for creating blocks mathematically;

Total Rewards = Vote Reward x brokerage ratio+ Block Reward x brokerage ratio

Note that rewards are distributed between the top 127 representatives and voters. The top 127 representative have a brokerage ratio of 20% while voters have 80%.

Vote Reward = (TRX/Block) x (blocks/election) x (total elections/day)
[N.B] Election is done every 6 hours and a total of 4 elections per day.
Total block per election is 7200 (since 1 block is created in 3 seconds)

Vote Reward =160 x 7200 x 4
Vote Reward = 4,608,000 (TRX/day)

Individual Vote Reward = 4,608,000 x (# votes / # total votes) x 20%

Block Rewards = (TRX reward/Block) x (blocks/election) x (elections/day)
[N.B] Super Representative are rewarded 16 TRX per Block created

Block Rewards = 16 x 7200 x 4 = 460800 (TRX/Day)

Each super representative daily Block Reward = (Block Reward/Number of SR) X brokerage ratio = 460,800/27 x 20%
Each super representative daily Block Reward = 3413.3 (TRX/Day)

Example:

Total Rewards for BinanceStaking

Total Rewards for BinanceStaking = Vote Reward x brokerage ratio+ Block Reward x brokerage ratio

Individual Vote Reward = 4,608,000 x (# total votes/# votes) x 20%

BinanceStaking Vote Reward = 4,608,000 x (6,725,324,941/26,848,640,561) x 20%
BinanceStaking Vote Reward = 4,608,000 x (0.25) x 20%

BinanceStaking Vote Reward 230,400 TRX

Each super representative daily Block Reward = 3413.3 (TRX/Day)

Total Rewards for BinanceStaking = Vote Reward x brokerage ratio+ Block Reward x brokerage ratio

Total Rewards for BinanceStaking = 230,400 + 3413.3 = 233813.3 TRX

Super Representative Candidate

These are block producers who did not make it to the top 127 after the last election (6 hour interval). These block producers do not get any reward for creating blocks. Block producers from number 128 below fall under this category. Anyone can be a block producer, which automatically makes the individual or node a Super Representative Candidate.

When a user applies to become a SR candidate, 9999 TRX will be automatically burned to prevent attacks. Candidates do not make proposals and do not get rewards from blocks.Read More

DPOS and POS consensus mechanisms

Proof of Stake

This is a consensus mechanism that does not require the use of excessive energy to validate and create blocks, rather, it just requires that users stake their tokens, then the algorithm mechanically chooses a random staked account to validate the transactions.

The validation process could be done based on the size (volume) of the stake, longevity and period at which stake has been locked, and the lowest hash value. While Proof of Stake is a good consensus mechanism, it has flaws such as favouring the wealthy who can stake large amount of tokens.

Delegated Proof of Stake

Delegated Proof of Stake is the revolution that came to dethrone the POS consensus mechanism. With DPoS, users can delegate their stakes into voting for candidates they find worthy to become block producers, while they earn from voting them (in some cases). The system allow for democracy where the delegates can create a proposal favouring their voters while expecting others to validate their proposal. Unlike proof of stake, users do not have to transfer their funds to their delegates, they just need to vote them with their staked tokens.

Difference Between Proof of Stake and Delegated Proof of Stake

Proof of Stake	Delegated Proof of Stake
Validation of Block isn't fast	validation of Blocks are in Seconds
Users who Stake receive coins for staking	Delegate are elected and voters do not need to stake their coins
Stakers Remain in the system even when they are not adding to the network	Delegates can be removed by voters if found not adding to the network
Proof of Stake can lead to hoarding of coins	Delegated proof of work doesn't lead to hoarding of coins.

Write a Step by Step tutorial showcasing how to stake/freeze TRX and vote for SRs

To perform this tutorial, I will be using my System, and a Firefox browser. so the first thing to do is to download the Tronlink on the Browser.

Create a password, then you can either add a new wallet or add an existing one. I will be adding an existing wallet and to do so, the private key is added.

The Tronlink wallet is created successfully.

Visit https://tronscan.org and click on Connect Wallet

After clicking on connect, a pop-up to pick the type of wallet is shown.

I clicked on Tronlink and then the connect button. then clicked on the address at the top right conner to display my wallet.

On the wallet page, click on get vote so as to stake the tokens available to get Tron Power.

A pop-up to insert the amount of token to stake appears. I will be staking 7 TRX in this tutorial.

After clicking on stake, the successful pup-up shows up.

Click on the Vote Button to be redirected to the Super Representative page.

On the Representative page, click on the Voting button.

After clicking the voting button, I am allowed to vote for the representative that I want. It is clearly shown above that I have only 7 votes. I will be voting for BianceStaking.

After inserting the number of vote I want to give, I click on the voting button

A pop-up to sign the transaction appears showing me the details of the transaction.

The vote is done successfully and a pop-up to shown success appears.

Conclusion

Delegated Proof of Stake has been Proof of Stake's greatest fear and there is no doubt that DPOS has been a great plus to the blockchain and cryptocurrency in general, from allowing fast and seamless operations, to alowing large data being stored on its blockchain. It has allowed user to be able to hold their coin and still have influence in governance on the blockchain. Little wonder why projects are adopting DPOS very fast and there will be more to adopt the technology in the future.

#yohan2on-s4week7 #club5050 #dpos #cryptocurrency #pos #blockchain