26
JUL
Bitquence Proof of Stake
Author
GLEN GARLAND
Comments
(9) COMMENTS
Category
ANNOUNCEMENTS
Initial draft v1, open for public comments.
This is one of the first features we plan to implement. Below is an outline of the approach and algorithm Bitquence plans to use for Proof of Stake.
Core Features
Participants can predict the future movement of any digital currency price
User can stake the predictions with BQX. Predictions can be cancelled or changed with fee (BQX)
User receives BQX back based on 3 factors
accuracy
prediction time
stake amount
Prediction Period
Each prediction period will have 2 phases
Phase A – predictions are accepted
Phase B – results are tabulated (predictions are not accepted)
The platform will have overlapping prediction periods so that user can always enter predictions. Because of this, the length of phase A and phase B should be the same.
Current thinking is for length of phase A and phase B to be 1 week each. Implementation should allow this length to be changed. In the future, multiple prediction periods can be established, eg 1 day, 1 week, 1 month, 1 year.
The composite of all profiles at the end of phase A is the community consensus profile of the particular crypto currency. This will be publicly displayed to any Bitquence user, and possibly on the internet.
If no profile has been entered during phase A, then the composite profile will be from the previous period.
to ensure every cryptocurrency has a default profile, when a cryptocurrency is introduced into the Bitquence system, a profile must be entered.
Prediction Ranking
At the end of each prediction period, all predictions are ranked by the difference between prediction and the price of the cryptocurrency at the end of phase B.
Notes
prediction time is not relevant for the ranking.
amount of stake is not relevant for the ranking.
Reward Pools
There are 2 reward pools
Stake Pool – This pool contains the BQX stake by user.
Bonus Pool – This pool is provided by Bitquence. The purpose is to encourage usage.of this feature.
Stake Pool Reward Calculation
Top 50% of predictions are eligible to receive reward from the Stake Pool.
For each of these predictions in the top 50%, calculate prediction score (S) as follows:
S = numToken x ( timeDelta x timeScaler ) x ( priceDeltaFactor x priceScaler)
where:
numToken = number of tokens staked
timeDelta = difference (in seconds) between prediction and the end of phase A. Minimum value is 1.
priceDeltaFactor = price – price – predictionprice
timeScaler = floating point number chosen by Bitquence
priceScaler = floating point number chosen by Biqeuence
The reward for each prediction is calculated as follows:
reward = StakePool * Sn / Ssum
where
StakePool = total BQX in the stake pool
Sn = the prediction score for this prediction
Ssum = sum of all prediction scores
Note: If there is only 1 prediction, then the user gets stake back.
Bonus Pool Reward Calculation
The top 80% of predictions will be eligible to receive rewards from the Bonus Pool.
The rewards are evenly distributed to all predictions in the top 80.
Note:
If there is only 1 prediction, then that user receives the entire bonus pool
Potential problem: users would be incentivized to enter multiple predictions with smaller stake instead of fewer predictions with a larger stake. A possible solution is to restrict each user to only 1 prediction per cryptocurrency.
Launch Feature – micro-BQX
Introduce the feature to users by creating a micro-BQX currency (uBQX)
1,000,000 uBQX = 1 BQX
During the feature launch period, all stakes are done using uBQX
Bitquence will provide each user on the system with 1,000,000 uBQX.
At the end of the launch period, uBQX are converted BQX
Only enable token sale participants to participate.
We welcome your comments and thoughts
https://www.bitquence.com/announcements/bitquence-proof-of-stake/