Post
Topic
Board Announcements (Altcoins)
Re: [ANN][LISK] Lisk | ICO | Decentralized Application & Sidechain Platform
by
GreXX
on 09/02/2016, 23:16:35 UTC

Explaining Lisk Forging Rewards

One of the biggest new features introduced by Lisk is delegate forging rewards. Today we want to explain to you our motivation behind introducing them and how they will work.


Get all information in our detailed forging reward description!

Quote
Why we introduced Forging Rewards
Over the past 10 months of working with Lisk’s Delegated Proof of Stake (DPoS) consensus mechanism, we have become very familiar with both its advantages and disadvantages.
What??? Huh Huh Huh

This is an accurate statement. Olivier and Max have been working with the Crypti DPoS (which Lisk is a direct port) for over 10 months and understand it quite well. They believe part of the reason there wasn't more delegate uptake was because of the lack of proper rewards due to low volume. Therefore they instituted a block reward. In Lisk, 5 new Lisk are created each block to reward to the delegates. So each one of the 101 blocks in a round creates 5 new Lisk that are cumulative for the 101 blocks. When the round is complete, the Lisk in that round is evenly distributed to the delegates who forged a block in that round, much like tx fee's would be. This ensures that there will always be a reward in every block and creates a built in incentive for running a delegate. It also makes the coin a small bit inflationary, but not enough to make much of a difference. This is actually something I proposed at the launch of the Crypti network but the team voted to not do inflationary blocks. It has it's advantages for sure and we will get to see how it works out and whether or not it increases the number of people willing to run delegates. It's the first major feature that starts to set Lisk apart from traditional Crypti, in my opinion, in a positive way.