Introduction

This document describes the various roles and interests of the AElf ecosystem. Production nodes, candidate nodes, investors, developers and collaboration rules.

The AElf economic model plays an important role in strengthening intra-chain collaborations in the ecosystem core business processes of the project. By stimulating the participation of all parties in the industry, the value of the entire AElf ecosystem will be promoted; rational distribution rules will be adopted to provide economic incentives for all AElf participants and contributors to promote the sustainable development of AElf's ecosystems health.

Actors of the economic system

The AElf ecosystem has the following actors: production nodes, candidate nodes, developers, investors (users), platforms.

Any node can apply to become a production node and the first 17 candidates are chosen. Once a node is elected, it will participate in the production of blocks according to the consensus rules and at the same time obtains the block rewards. a candidate node is not a production node according to the voting ranking. an individual or organization that develops an application based on the AElf platform is called a developer. those who own the valuable assets of the AElf platform become investors (users) of the platform.

Token model

AElf’s economic model is composed of multiple tokens: ELF (main token) and resource tokens RAM, CPU, NET, STO and of course tokens created by the developers and other actors of the ecosystem.

ELF is the main token on the AElf platform and is used for transaction fees, side-chain indexing fees, deposits and block rewards for production nodes.

The resource tokens are used by the developers to pay for the resource consumption of the application runtime. The developer needs to ensure that there are enough resources tokens to ensure the application runs normally. On the AElf platform, developers can create tokens, build their own token models and incentives.

Dividend pool

Rewards used to incentivized actors of the eco-system are taken from a dividend pool. Multiple sources increase the dividend pool:

  • every block produced will increase the current pool. The awards amount is reduced by 50% every 4 years. AElf produces 8 blocks every 4 seconds, and each time a block is created it will add 0.125 ELFs to the pool.

  • transaction fee: 90% of the transaction fee enters the dividend pool.

  • token transaction fee: trading resource Token will generate a transaction fee, and 50% of the transaction fee will enter the dividend pool.

Incentive model

Production node are responsible for collecting transactions, verifying transactions and packaging transactions into blocks and broadcasting them to other nodes. After verification, the block is added to the blockchain of this area to maintain the stability of the entire ecosystem of AElf.

They are incentivized to do so by receiving a base revenue (distributed from the dividend pool) as a reward from participating in consensus. Producers also receive extra revenue from participating in side-chain indexing and developer fees from side chains.

Candidates have the responsibility of verifying blocks and maintaining the overall ecological stability. For this they are also rewarded for their service through a reward mechanism based on the received votes.

Voting and election

At the start of the chain 17 nodes will be production nodes. Every year, two new producers are added. The maximum number of is determined by the community by vote, in order to adapt to the ecological development needs.