Analysis: Why is Lava's "Flint Mechanism" an upgraded version of staking?

Staking (interest pledge) is no stranger to those who are active in the mining circle this year. It has set off a new wave of “everyone mining” and has also brought PoS back to the center of the stage.

The rise of Staking is largely due to the fact that the current market conditions are getting colder, and the drawbacks of PoW mining become more apparent. The early participants earned a lot of pots, but the latecomers could only hope to quench their thirst. What's more, today's currency price is not the same as that of 2017. The calculation power is steep, the cost is increased, and the energy consumption is getting bigger. The mining machine that used to be "Golden" has begun to sell. According to this situation, the development will continue. When the miners are reduced and the head pool is occupied by a large amount of computing power, it is no longer impossible to launch a 51% attack.

It can be said that Staking was born in the mechanism of PoS. Based on the launch of star projects such as Tezos and Cosmos, Staking can be described as one of the best. In PoS or a mechanism similar to PoS, anyone can use the spoofing asset currency to obtain token rewards by means of Staking. The rate of return is calculated in terms of the currency standard, and the rate of return depends entirely on the expansion model of the cryptocurrency.

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Staking includes both MasterNode and Dividends modes. MasterNode means that a node stores a certain amount of tokens in order to obtain interest rewards by providing network services. In this way, simply, if a user uses a node's network service, the node can get a corresponding return.

The other, called Dividends, is a dividend-like way that is the majority of the gameplay on the market today. There are also modes of dual pass, such as holding A token but getting B token reward.

In the Staking model, the more coins that are not pledged, the more they are dug. The core of it is that the more tokens are pledge, it is possible to obtain a higher probability of mining opportunities. Although the market is very high for Staking, along with the recent market rally, many exchanges and mining pools have also launched the Staking section, and want to get a piece of it.

From the perspective of maintaining decentralization, Staking can guarantee the normal operation of the blockchain and ensure the activity of the public chain, thus improving safety. This may be the biggest value of Staking. Despite this, Staking is not without problems. For Staking's so-called "interest" and "dividend", the industry has long questioned the value of the token after the issuance.

The current Staking project has an additional issuance mechanism, generally between 3% and 6%. With the increase in the rate of inflation caused by the project, it has been repeatedly emphasized in the industry. According to the data, according to the inflation rate from high to low, we can see the result – the top 10 inflation rate is close to 80%, and the lowest is 16%, and the bubble may break.

In addition, Staking is inseparable from the lockout. Many fund-discount projects facilitate the use of lockouts. This will require investors to lock the warehouse for half a year or more, but it will take more than half a month to unlock the withdrawal. What's more, the income of the locked warehouse, the investor has no right to speak at all, it may be 6% or 1%, and the Staking provider can adjust it at will.

As a leader in the field of PoC, Lava proposed the concept of "Flint Mechanism" and completely avoided the above problems. What is the flint mechanism? It is Lava's unique certificate, with the consensus of the previous goal, to support the LAVA token LV to obtain double mining output, but not mandatory. The value of Flint is regulated by the market. In the end, how many lv can be mortgaged to generate Flint, not the project party has the final say.

We all know that prices fluctuate around value. The formation of Flint, in addition to the supply and demand of the market, can also depend to some extent on the value of the project. Moreover, Lava does not carry out ICO or token pre-sale, so Lava has no concept of valuation, and the price of Lava is completely determined by the market.

The Flint's freeze ratio is dynamically adjusted at the beginning of each slot (every 2048 block height style). When the number of flints in the previous Slot exceeds the target value of 2048, the freeze rate of the Slot will increase by 5%; when the number of flints in the previous Slot is less than the target value of 2048, the freeze ratio of the Slot will decrease by 5%.

At present, different mine pools have different strategies for Flint. For example, B3pool is a profit-taking user who buys flint and mining users with a profit of 82 points; onepool is four or six points, and the blocker can also award an additional 50Lava; 168pool is a combination of Flint exclusive mode and shared mode.

The above-mentioned exclusive pattern of flint income can be understood as a miner holding a flint and popping up, enjoying the full benefit (double mining reward). The sharing model is that all miners holding Flint share the block reward. When the mine is out of the block, it will automatically detect the proportion of each miner's flint holdings and the effective capacity ratio, for each miner. The weights are assigned to calculate block revenue.

The addition of the Lava Flint mechanism has made Staking no longer just a way to get "interest" mortgages, enriching the Staking mode. In addition, Lava also sets up a power binding mechanism, which allows users to bind their own computing power to another user, so that both parties' revenues are transferred to the bound address. Computational binding will mean that the pool organization will be more diverse and the direction in which it can be developed in the future is more imaginative.

Simply put, the Flint Mechanism is like an upgraded version of Staking, which inherits all the advantages of Staking and circumvents the inflation rate that has always been criticized.

The initial heart of Lava's design of the Flint Mechanism is the natural adjustment of the Flint price by the market. In this way, the enthusiasm of the miners can be mobilized first, and the activity of the chain can be ensured. Secondly, the market can generate new vitality and have more possibilities to make the miners and the mining pool work more closely together. Finally, it can also be based on The price signal reflects the gap between supply and demand and the economic model of the adjustment project itself. This will be more conducive to the progress of the Lava ecosystem, when the project is the best, enough to accommodate more blockchain co-builders to join, to face the market with a free attitude, rather than the control model of the skyrocketing economy.

Lava has always focused on improving the existing consensus mechanisms by focusing on the PoC consensus mechanism. Lava has been working hard to build a low-level framework for global PoC participants, to create a “root of trust”, and to establish a global “top-level index” based on this.

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