Masternode Genom: Hydra (ENG)

Last updated 22 days ago

A document explaining the operation of the GENOM masternode reward system

We would like to present a new economic model included in Genom masternodes – “Genom Hydra”.

Every one of you, while setting up a masternode on your server, asked questions such as:

  • «How much income can I expect during a particular length of time, and will theprice of the coin fall if I will accumulate?»

  • «Will my investment into a new project be justified if I will be purchasing morecoins?»

  • «Will those who hold more coins and therefore are “richer” receive a greaterreward. How could I achieve the highest level of income from my investment?»

For these questions Genom team prepared a mathematical answer, a masternode of new generation, which is crucially different from all previous projects and existing projects.

Let’s take a millionth block into example to answer the questions above. At block one million, miners would have created 8000000 coins. Ideally, there would be 800 masternodes with 10000 coins locked up in each. Daily with block target time of 10 seconds – 8640 blocks.

Block reserve for masternode reward – 2 coins:

8640*2=17280

17280/800=23,6 coins for 1 masternode daily;

21,6*30=648 coins every month for 1 masternode;

Does not seem like much? There is not much motivation for holding the coin.

We have changed the reward method, with the help of multilevel structure, each of the levels influences the others and each level has it own reward conditions.

Altogether, there will be 10 levels, starting with the first one, where 10000 coins are required, other levels will require an amount increasing by 10000 until the 10th level of 100000 coins.

How will the reward change with such conditions?

Let’s refer to the table 1:

Required amount of coins

Hydra level

Amount of Masternodes in the system

Daily reward

10000

1

350

4,101355102

20000

2

90

10,35036735

30000

3

80

16,49755102

40000

4

70

23,29273469

50000

5

60

31,05991837

60000

6

50

40,38230204

70000

7

40

52,42628571

80000

8

30

69,91346939

90000

9

20

101,0086531

100000

10

10

186,5358367

Table 1.

From condition of column “Amount of masternodes in the system” in table 1, we can see that Hydra of level 1 would produce 4,1 coins daily.

Hydra of level 2 logically would produce twice the coins, therefore 8,2 coins. However, as we can see it produces 10,35 coins, which is of course more profitable than two separate masternodes of level 1.

Hydra of level 10 logically should produce rewards 10 times greater, therefore 41 coins. However, we can see that it produces 186,53 coins, which is significantly more than 45 separate Hydra masternodes of level 1.

You could think that this is “unfair” to those who possess less coins. Yet it would only seem that way at first.

Let’s look at this situation in a converse way:

Required amount of coins

Hydra level

Amount of Masternodes in the system

Daily reward

10000

1

10

9,272692913

20000

2

20

14,65738583

30000

3

30

17,45007874

40000

4

40

19,59477165

50000

5

50

21,48026457

60000

6

60

23,23615748

70000

7

70

24,91799325

80000

8

30

26,55354331

90000

9

20

28,15823622

100000

10

10

19,18818628

Table 2.

From condition of column “Amount of masternodes in the system” in table 2, we can see that Hydra of level 1 produces 9,27 coins daily, which is 1,97 times less than Hydra of level 10 and not 45 times less like in table 1.

Hydra from level 4 to level 9, conversely, greater than 10th level.

At this point you could also think that it is “unfair” for those who accumulated enough coins for 10th level masternode. Again, it would only seem that way at first glance.

All you have to do is withdraw the desired amount of coins from masternode wallet to move to one of the «neighboring» levels and transfer the coins into another wallet (exchange/friend’s/own).

In case of withdraw to the exchange and following sale, you can stimulate the purchase of the coins for those who do not hold enough coins for certain masternode level.

In table 3 let’s consider a possibility where on one of the levels (conditionally on the 6th) in the system «concentrated» 1 masternode:

Required amount of coins

Hydra level

Amount of Masternodes in the system

Daily reward

10000

1

10

9,258914651

20000

2

20

14,6298293

30000

3

30

17,40874395

40000

4

40

19,53965861

50000

5

50

21,41137326

60000

6

1

864,2574879

70000

7

129

18,21668163

80000

8

80

26,44331721

90000

9

90

28,03423186

100000

10

350

19,05040366

Table 3.

An impressive reward equal to 5% of collective daily rewards for all masternodes in the system – 864 coins. That is 40 times greater than for Hydra of level 5 and 47 times greater than Hydra of level 7. Let’s note that such daily reward is possible if your masternode is fixed as the only one on the 6th level during the day.

In table 4 let’s consider a possibility where the amount of masternodes on each level is equal:

Required amount of coins

Hydra level

Amount of Masternodes in the system

Daily reward

10000

1

80

3,132

20000

2

80

7,236

30000

3

80

11,34

40000

4

80

15,444

50000

5

80

19,548

60000

6

80

23,652

70000

7

80

27,756

80000

8

80

31,86

90000

9

80

35,964

100000

10

80

40,068

Table 4.

We can see that still, «holding» coins and moving to new levels is many times more profitable.

Let’s look at the most profitable possibility of allocation of rewards for levels 2-10 in table 5:

Required amount of coins

Hydra level

Amount of Masternodes in the system

Daily reward

10000

1

791

11,34564322

20000

2

1

255,7746746

30000

3

1

422,5420118

40000

4

1

589,3093491

50000

5

1

756,0766864

60000

6

1

922,8440237

70000

7

1

1089,611361

80000

8

1

1256,378698

90000

9

1

1423,146036

100000

10

1

1589,913373

Table 5.

If your Hydra is greater than 1st level and amount of masternodes on such level is significantly less than on the other levels – your reward is greater! Therefore, being on any of the levels , your reward could be many times greater of the previous level or next level, in dependency of the «load» of the level.

In the tables above example conditions are presented to illustrate the functionality of the reward system.

The reward of the registered masternode will be paid out once a day, according to the sum of your masternodes online during production of each block.

The reward for each masternode, in particular, is variable for each block, depending on the amount of all masternodes online, and depending on the amount of masternodes on each level.