Vite Labs, which is set to launch its testnet for their decentralized application platform has announced incentive plans for participation. The incentive plan will kick off after the testnet is launched, and after Vite releases a system for users to migrate their ERC20 tokens to the testnet.
The following plans have been organized:
Super Node Election
Each full node will be eligible for becoming a supernode on the testnet and collecting mining rewards. At the time of mainnet launch, all supernodes on the testnet will automatically become supernodes on the mainnet.
To become a SuperNode, a node must:
- Stake 500,000 VITE (this requirement becomes 1,000,000 VITE for mainnet);
- Run a server and have the necessary skills to maintain said server;
- Have community influence and be able to call for votes from VITE holders.
There are 25 Vite supernodes in total. Vite Labs will retain at least 5 supernodes to ensure the stability of the system. The remaining supernodes are generated via voting. The 20 supernodes with the most votes will receive mining rewards.
Initially, Vite Labs will be responsible for running all 25 supernodes. When a new super node is registered in the community, and it obtains at least 200,000 votes, Vite Labs will retire one of its official supernodes, to allow the new supernode to takes its place. There will be up to 20 supernodes from the community. If more than 20 community nodes have registered for supernode status, they will compete for the 20 super node spots according to their vote count.
Super Node Incentive Plan
In the testnet, the VITE tokens originally reserved for airdrop & marketing (which has been migrated from ERC20 to TestNet per a previous article), will be used to reward the miner. After the mainnet is launched, miners will be rewarded through the additional issuance of tokens (aka inflation).
Reward amount: All supernodes running for a full year will receive a mining award of 3% of the total supply, or 30 million VITE. One supernode will receive 1.2 million VITE on average, which translates to 3287.67 VITE per day.
Rules for Supernodes’ Block Creation
The Vite system generates one snapshot block per second. The mining reward is calculated in terms of blocks. All 25 supernodes produce 86,400 blocks in one day, with each supernode producing 3,456 blocks. Each block is rewarded approximately 0.95 VITE.
Rewards for Voting — Voters will receive Mining Rewards obtained by Vite’s Official Supernodes
In testnet, all mining rewards obtained by official supernodes will be distributed to the community. Recipients of the rewards include voters and users that run full nodes.
If a user has VITE tokens in the testnet, they will receive rewards every day by voting for any of the OFFICIAL SUPERNODES. The rewarded amount depends on the total number of voters. Note that more voters will mean less income for each voter. Therefore, vote early (fewer voters then) to earn higher rewards.
If transferring VITE tokens out of the original voting account, that account will not be able to receive voting rewards anymore.
In the absence of community-registered supernodes, Vite Labs will give away all 82,000 VITE (the mining rewards of all 25 official supernodes) every day, according to this breakdown: 70% (57,500 VITE) to the voters and 30% (24,600 VITE) to the full node runners.
When the community starts to register as or vote for supernodes, the official supernodes will be gradually retired until five of them remain. The remaining official supernodes will continue to distribute their mining rewards to voters and full-node runners.
Voluntary Migration for User-owned VITE ERC20 Tokens to Vite Testnet
Vite ERC20 holders may choose to convert their own VITE ERC20 tokens to VITE in a 1:1 ratio.
The converted tokens can be used for supernode registration (i.e., staking) or voting for supernodes.
The migration is one-way and not reversible. After the migration, your VITE will be temporarily un-tradable in the secondary market, until the mainnet is launched.
VITE Test Tokens
Since they are equivalent to VITE ERC20 tokens in value, the VITE tokens in the testnet will no longer be offered for free. All VITE test tokens distributed in the preview version of the Vite network will be cleared. From then on, any new VITE token on the testnet must be migrated from ERC20 tokens on a 1:1 basis.
After Vite main is released, the VITE tokens on the testnet will be converted to the mainnet, on a 1:1 basis.
Vite recently released a preview version of its ecosystem which includes, Vite App iOS version, Vite Block Explorer, Vite Web Wallet, Vite Store, and Vite Pay.