Gamified Proof of Stake (GPOS)
Last updated
Last updated
Building on the success of the DPOS consensus mechanism, Peerplays introduced a unique enhancement called Gamified Proof of Stake (GPOS). This idea was first proposed as in January 2019.
The original intent of Peerplays was to operate as a Decentralized Autonomous Cooperative (DAC) where DPOS enables the voting collective of core token holders to determine who would act as Advisors, Witness, and Proposals within Peerplays. However, like other DPOS based blockchains, the challenges of voter turnout continue to plague Peerplays.
GPOS made a protocol change such that PPY token holders now receive a participation reward based on their voting performance and how many PPY they have vested or staked.
This is a significant change from the original protocol where token holders were rewarded with their share of a rake, taken from a percentage of the blockchain fees, and then distributed to token holders relative to their token holdings, regardless of any voting participation.
Put simply, this means that each PPY token holder needs to vest some, or close to all, of their PPY balance towards GPOS and then once a month vote for either Witnesses, Advisors or Proxies.
Being a DPOS consensus blockchain, the importance of voter participation from the PPY token holders is paramount to the security of the blockchain. The introduction of GPOS ensures that token holders will take an active interest in the operation and governance of Peerplays.
Each vote cast impacts the people behind the successful operation of Peerplays, in particular the Witnesses. A Witness receiving high votes is much more likely to be elected as a block producing (active) Witness.
Under DPOS the Witness position is more secure because a lot less token holders are voting and subsequently it might just take one or two major PPY token holders to influence the election of a Witness. Under GPOS all token holders should participate making it a much more democratic process, and also receive rewards for voting.
Participation rewards combined with voting performance are what makes the Peerplays consensus mechanism gamified.
The rewards are calculated as follows:
This is the percentage of a user's maximum possible reward received based on their voting performance. This reward decays at a rate of 16.67% per month. For example, if a token holder doesn't vote for a month the qualified reward percentage drops to 83.33% and if the token holder doesn't vote for six consecutive months the reward will be 0%.
Note: Complete decay was set at six consecutive months to coincide with the dividend distribution periods.
Below are the some of the key GPOS parameters that are currently set on mainnet.
GPOS period = 6 months(180 days)
GPOS sub-period = 30 days
GPOS lock-in period = 30 days
Vesting fee = 1PPY
Withdrawal fee = 0.01PPY
So the estimated rake reward is calculated as:
GPOS balance = b Total GPOS balance on blockchain = TB Qualified reward % = q
Estimated Rake Reward% = (b / TB) * q
For example:
A user has a GPOS balance of 1,000PPY and is entitled to 100% of their reward based on voting performance. The total GPOS balance on the blockchain is 4,000,000PPY.
The user would receive the following percentage of the rake:
(1,000 / 4,000,000) * 100% = 0.025%
So if the total (month) rake was 100,000PPY then the user would receive 25PPY.
create_vesting_balance account amount asset_symbol vesting_type broadcast
Creates vesting balance of GPOS type, enables user to participate in GPOS
Example:
vote_for_witness account witness approve broadcast
Cast or withdraw vote for a witness by given account. To keep user vesting performance, it is best for user to vote in each GPOS subperiod
Example:
withdraw_GPOS_vesting_balance account amount asset_symbol broadcast
Once the vesting period expires, user is able to collect his reward with withdraw_GPOS_vesting_balance command. User is not allowed to withdraw his balance before vesting period expires. Default GPOS vesting period is 30 days.
Example:
How to retrieve GPOS info
Some GPOS info is stored in global properties object. Retrieve GPO and inspect the following values - gpos_period, gpos_subperiod, gpos_period_start and gpos_vesting_lockin_period.
Example:
How to check account's last voting time
Account's last voting time is stored in account's statistic object. To retrieve the account statistic object, user needs account statistic object id, which is stored in account object.
Example:
This is the potential percentage reward a user could receive based on the , the amount of PPY they have vested and their share of the total GPOS balance.