On Feb 20th, the ELA node was upgraded to support registration of DPoS supernode candidates. Voting for candidates and the DPoS Election will soon begin. There is a community initiative called the “Elastos DPoS Node Rights Alliance” (“???DPoS??????”) that has been set up, “to allow more token holders to participate and benefit from the Election.”
There are two kinds of members within this Alliance, namely Node Committee Member (NCM) and Voting Member (VM). The Alliance is composed of 36 NCMs and unlimited VMs. NCMs will lock-in 5,000 ELA to participate in the Election and use the rest of their ELA to vote. VMs are required to place their votes toward all 36 NCMs.
If any NCM is elected, their profit as a DPoS node, after subtracting the running costs, is treated as profit for the Alliance and will be distributed among all members. Each locked-in ELA represents a weight of 2 and each voting ELA represents weight of 1.
For a VM, the return comes from voting (RVM):
RVM=Voting ELAVotes obtained by the Alliance + 36 locked-in ELA2Profit of the Alliance
For a NCM, besides the return from voting (using the rest of their ELA besides locked-in ones to vote), she can get the return from being a node (RNCM):
RNCM=RVM+locked-in ELA2Votes obtained by the Alliance + 36 locked-in ELA2Profit of the Alliance
For example, assume that the total votes gained by the Alliance is 2.64 million and the net profit of the Alliance is 30K ELA. If a NCM holds 20K ELA, her profit will be:
RNCM=(15,0002,640,000 + 36 5,0002+5,00022,640,000 + 36 5,0002)30,000=250ELA
In the above formulas, the percentages of RNCM will decreases with the increase in total votes obtained by the Alliance. This will encourage members to vote. Meanwhile, the absolute profit of the NCMs will still increase with votes obtained as the total profit of the Alliance increases.
As the Alliance states, the purpose of running nodes is not for profit but for the following reasons:
- Provide a way for token holders to benefit from DPoS Node Election;
- Encourage members to vote; and
- Prevent to collusion of “whales”.
What are your thoughts? Is this a way to counter the power of whales as it’s an open invite to the international community, or will it increase power even further for a small group of individuals as in many other DPoS blockchain projects?
The Alliance is recruiting members, and in particular, Node Committee Members. Interested parties can obtain more information by joining the WeChat group (ID: League_of_Elastos).