The SINOVATE AURORA mainnet upgrade officially commenced at block height 550, 000, marking the successful transition from masternode enhanced Infinity Nodes to pure Deterministic Infinity Nodes 1.0 (DIN). DIN was built from the ground up and entirely removes the Dash legacy codebase from the network. Now that this integration is complete and functioning flawlessly, we will be pressing ahead with our objectives for 2021.
Prior to announcing our 2021 roadmap, we are conducting a community governance proposal to decrease the total number and associated rewards for upcoming BIG and MID deterministic infinity nodes. The reasons for the proposal will be discussed in this article.
Why do you want to decrease the rewards and number of BIG and MID nodes?
High inflation is an issue synonymous with financial systems throughout the globe. Money printing exceeding trillions of dollars by The United States Treasury since the start of the COVID-19 global pandemic is a recent example of this, but inflation is also an inherent problem throughout the cryptocurrency sphere. We have strived to lower SIN coins’ emission ever since infinity nodes’ inception into the SIN System Economy (SSE).
In June 2019, the SIN coin circulating supply was 650 million, which now stands at around 600 million. Over 1.3 billion SINOVATE coins have been burnt thus far, thanks to our continuous deflationary Proof of Burn mechanism. SSE is solely reliant on proof of burn, where the collateral required to create infinity nodes is burnt from the SIN circulate supply forever, thus significantly reducing emissions throughout the SINOVATE network. In theory, this procedure has the potential to exponentially increase the long-term value of every SIN coin you own.
However, regardless of burnt blockchain transactions, lowering block rewards is essential to controlling inflation even further. There are currently almost 400 BIG and MID nodes, with 1752 SIN and 838 SIN received by BIG and MID SIN Nodes. The purpose of this community vote is to propose the reduction of BIG rewards to 1250 SIN and MID rewards to 650 SIN, bringing these tiers close to 300 nodes each.
I created a BIG/MID Node months ago. What does this proposal mean for my rewards?
The proposed reward decrease will not affect BIG and MID nodes created before 04.02.2021, and will only impact nodes made after this date. BIG and MID nodes created on or before 04.02.2021, will receive 1752 SIN and 838 SIN for the entire 12-month node lifespan. All MID and BIG nodes created on and after 05.02.2021 will receive 1752 SIN and 838 SIN until 05.02.2022, with 1250 SIN and 650 SIN paid from 05.02.2022, onwards.
What benefits will this bring to the SINOVATE network?
If accepted, this will result in the reduction of 690 SIN block rewards for BIG and MID SIN nodes combined, as well as the removal of 25 million SIN coins from the yearly circulating supply. The total number of BIG and MID nodes will both be close to 300, creating greater equality and economic prosperity across the SINOVATE network. Additionally, as the total number of block rewards will be lower, 69 SIN fewer coins will be received by the SINOVATE Development Fund.
To ensure that the Incorruptible Data Storage (IDS) platform is always exceptionally rapid, secure, and scalable for all future decentralized cloud data storage needs, significantly more affordable nodes must be added. Therefore, a new TINY node tier will be introduced in 2021, bringing thousands of more nodes into the SINOVATE network and considerably reducing entrance barriers for everyone. An additional 100 million SIN coins will be permanently removed from circulation. Further details regarding the TINY Node tier will be communicated in due course.
Are there any disadvantages to reducing BIG and MID Node tier rewards?
There are literally none! As previously mentioned, acceptance of this proposal will not affect current BIG and MID node owners in any way, as all nodes created before or on 04.02.2021, will receive associated rewards until the maturity date. As always, regardless of the outcome, SINOVATE will only proceed as the majority decides. Your vote counts. Help to shape our future, and join us on our journey to create greater equality, wealth, and world-class decentralized cloud data storage for all.
Join us and stay tuned for all forthcoming updates via our website and social media platforms:
Author: Amit Kaushal