Economic Fixes for the xx network – Stage 2

conomic Fixes for the xx network – Stage 2

With the fixes launched last month many node operators have felt the pressure subside. There are a few nodes who are facing a significant remaining issue: they are over nominated. Because too many coins are nominating their node, the returns from their own coins are low.

This is caused by the requirement to nominate your own node. If node operators were able to nominate any node, the Phragmen system would shift their coins to other nodes where they can get better returns – and the solution is to do just that.

This, in theory, could just be solved by enabling trading (which the team is working on doing as soon as possible), but this would put nodes in a bind. A wallet used to validate a node cannot nominate other nodes. And due to the 28 day unbonding period, a node would need to lose a month of income in order to nominate others.

We plan to fix this with a switcheroo – members of the MainNet Transition Program will commit to a new wallet, the team will send coins to that wallet, and you will cycle the node to that wallet, allowing your initial wallet to nominate any node.

As to the new coins, node operators ran for roughly 2 weeks uncompensated during MainNet Launch in November. Following these instruction, you can register a new wallet to receive 4,000xx as compensation for the first half of November.  In general, the appropriate compensation is 3,500xx, but we are increasing it by 500xx to account for lost staking rewards.

For all nodes, a 60% minimum uptime between BetaNet or ProtoNet is required over the 2 weeks in order to receive the compensation.

Next week, we will launch a process to move MainNet Transition Program nodes over to their new wallet. In order to ensure that too many node operators do not go offline at a time, we will only be moving 25 nodes a day. You will receive an email with instructions to use a new MainNet Commitments applet which will allow you to designate your new wallet as a validator wallet and the old wallet as a nominator wallet – both of which will count for the team multiplier. As well as instructions for transferring the cMix node registration from one wallet to the other. For the duration of this period, the minimum stake for a node will be reduced to 1,000xx so you will be able to start your node with the November coins. 

This is the last fix needed for the launch of the xx network, and are excited to be on the cusp of the next stage of the xx network.