Rewards and Incentives
What is the difference between TOTO (core asset) and POTENTIAL, and how are they earned?
TOTO (Core Asset): This is the main transferable asset of the Toto Chain. It can be traded, transferred, or used to pay for network fees.
POTENTIAL: A non-transferable asset that can only be used for network fees and referring new users. It decays over 28 days if not used.
Earning Mechanisms:
Block producers earn POTENTIAL by signing transactions and generating new blocks.
TOTO (Core Asset) is earned by submitting fractional NFTs (fNFTs) to the reward system. Block producers collect fNFTs, and when they accumulate enough, they can exchange them for core assets.
How is the core asset claimed by a user calculated?
When someone submits fractional NFTs (fNFTs), the rewards they can claim depend on:
The number of fNFTs submitted – Users need to collect a complete set to claim the full NFT.
The amount in the reward pool – The available core asset in the pool at the time of claiming.
The number of users referred – A user's referral history influences their reward potential.
Random selection – Since fNFTs are distributed randomly, acquiring a full set can take time.
How are rewards for block production calculated and distributed?
Block producers earn POTENTIAL after producing blocks. The total POTENTIAL to be distributed is divided by the expected number of blocks over a given period.
Block producers also receive fNFTs as additional rewards. These can later be converted into core assets by submitting a full set.
POTENTIAL decays over time (28 days), encouraging continuous participation.
What is the halving mechanism for rewards, and how does it work?
The TOTO rewards follow a halving cycle every 28 days (called Liquidity Halving).
Each cycle, the amount of core assets in the reward pool available for claims is cut in half.
There is a total of 13 halving cycles, after which unclaimed assets in the reserve pool regenerate.
Can I earn additional rewards through activities like referrals or community contributions?
Yes! Additional rewards can be earned through:
Referrals: Block producers can set a share parameter for referrals, meaning they share a portion of their earned POTENTIAL with users they referred.
Community Contributions: Users and dApps can submit full NFTs to the reward pool, allowing contributors to earn rewards for supporting the ecosystem.
What is the relationship between node performance and the rewards earned?
Currently, node performance does not directly influence rewards, but a reputation system is under development. In the future:
Validators with better uptime and reliability could receive higher rewards.
Underperforming nodes may lose eligibility for block production and, therefore, rewards.
Where are the fNFTs coming from?
fNFTs originate from user-created NFTs submitted to the reward pool.
The blockchain automatically converts full NFTs into fractional NFTs, which are then distributed as rewards for block producers and referrals.
Communities and dApps can also create NFTs and contribute them to the reward system.
What if there are no fNFTs?
If no fNFTs are available, block producers still receive POTENTIAL as rewards.
The blockchain ensures that even in the absence of NFTs, POTENTIAL continues to be distributed to incentivize participation.
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