The start of a phased campaign in the run up to public network launch
We all have roles to play within the Dusk Network and we’re inviting you to join us. In the coming weeks, pre-registration for staking opportunities will open, allowing DUSK token holders to fulfill the role of a node while reaping the benefits of participation.
Want to learn more about the function of nodes in the system? Read our previously released blog here: https://dusk.network/news/consensus-algorithm
- Dusk Network is launching a two-pronged pre-staking campaign:
Block Generator and Provisioner.
- The first phase starts with ERC-20 staking in order to amass a large number of node participants
- ERC-20 staking aims to evolve network participation gradually towards Genesis
- Staking will be open to almost anyone able to hold and trade DUSK
Staking is a vital mechanic within Dusk Network from both a technical and community-based perspective. On the technical side, the act of staking powers the Segregated Byzantine Agreement (SBA), which is Dusk Network’s Consensus Algorithm. Stakers fill specific roles within this mechanism and strengthen the network as a whole.
Just as important is the significance of staking in the relationship between project and community. By staking, participants are showing their dedication and willingness to further support Dusk Network. In return, they not only become first adopters of cutting edge technology, but also receive compensation for their efforts in the form of DUSK tokens. Accessibility is key, which is why nearly all who are able to buy and trade DUSK will be able to stake.
During the ERC-20 stage, minimal technical knowledge is required to identify as either a Block Generator or Provisioner. Our step-by-step tutorials will detail the actions needed to participate, while ensuring wide accessibility to non-technically savvy users.
Unique staking opportunities in a unique algorithm
Our Segregated Byzantine Agreement is a unique consensus algorithm, and so it follows that the types of staking available are also atypical. The two types of staking (the Dual Node system) are Block Generators and Provisioners. Both play different yet connected roles within our SBA.
To learn more, we highly recommend you read our article ‘An Introduction to our unique Consensus Algorithm’: https://dusk.network/news/consensus-algorithm
During the ERC-20 stage, our Dual Node staking system not only provides accessibility through two different staking methods but also two different reward types.
In terms of accessibility, Block Generators will require a higher stake (or ‘bid’) for participation but can potentially reap larger benefits than Provisioners. However, as the reward pool will be fixed - the staking payout is dependent on different variables, such as number of participants and total amount of DUSK staked. In this way, there is a discovery of the reward-ratio, to functioning as a Block Generator, and calculated risks might lead to significantly higher payouts. In contrast, Provisioners work together by design. Their return is steadier, without the risk of variables significantly changing the payouts.
Here’s a brief summary of the two ‘node teams’ powering the system:
Team Block Generator
Block Generators can be seen as lone wolves in fierce competition with each other. Every consensus round, Block Generators prepare candidate blocks in the hopes of becoming the single victor by measure of bidding. An advanced mathematical algorithm attaches a somewhat-random score to their bid, which ultimately decides the winner. This score is not entirely random, as the algorithm is swayed favorably by the amount of DUSK that the Block Generator bids.
However, to further increase sybil-resistance and decentralization, the algorithm is designed to limit its favor to higher bids. In addition, there is a fixed lower and upper bound of the amount of DUSK a Block Generator can bid. Once the Block Generator with the highest score is selected the victor, his candidate block is sent to the provisioners for verification. If all goes well, the winning Block Generator lines his pockets with DUSK rewards. This element of competitiveness is evident in the reward structure from ERC-20 staking to Genesis staking.
All for balance and fairness, Provisioners stake DUSK in order to be eligible for a Provisioner committee. There may be 3 provisioner committees, each consisting of 64 provisioners, which are re-created every consensus round. Provisioners are selected somewhat-randomly (which too can be swayed favorably within bounds by the amounts of DUSK staked).
The committee verifies the integrity of the winning block, and either approves or rejects. After approval, the finalized block is added to the network and the committee splits the reward amongst all its active participants.
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Together, the Block Generator and Provisioner reside at the heart of Dusk Network. Without either of them, the network would not be able to live up to the mission of being a truly scalable privacy-respecting blockchain.
Preparing for Staking..
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