Draft: Freicoin 2.0 lesson learned - From people for people! - Layer 2 - Part 1 (POS) - Freindoes

[Arcurus 331]

Hello Freicoiners,

here is a now a more detailed early draft of how a Freinode / proof of stake based layer two could look like. This proposal is designed that way, that it can be used as second layer on the current Freicoin chain, similar to a soft fork. This draft does not have the Freicoin community consensus yet, and is therefore considered to be treated as my suggestion only.

 

If you dont agree with poof of stake (POS), i still please you to read this proposal. After that i would like if you could add your arguments pro / con here. Just to mention, this proposal uses POS only in layer two. The base layer would be still pure proof of work (POW). The here outlined POS algorithm uses a combination with POW, therefore multi chain signing of POS is not possible. The current draft is very much based on the dash masternode concept and therefore is proven to function in a one billion dollar market. I tried to simplify the masternode concept to as few parameters as possible to keep more complex decision making to layer three. Therefore you can find here nothing how to proof if a Freinode is doing his work well, thats layer three. Here you can only find how to get rid of the node if you think that he doest do his work properly.

This part is mainly about how to secure the blockchain with proof of stake based Freinodes on top of the proof of work based layer one and how to allow near instant transactions. The draft is also the base platform where the Freicoin 2.0 budgeting system could stand on, see next post. 

 

If you missed the first part where i outlined layer one i recommend to read first the initial post here: 

But have in mind, the first layer could also simply be the current Freicoin layer with all its cons and pros.

 

Layer 2 Part 1 - Freinodes:

- enforced on layer similar to a softfork. See dash masternodes

 

 

Introducing Freinodes

 

- layer two has a list of all Freinodes

 

- the Freinodes list is sorted according to the received ¨votes¨

 

- one coin equals one vote

 

- each coin owner can delegate his voting power to up to 10 freinodes

 

- after one year the delegation must be renewed

 

 

Introducing irreversible ¨instant¨ transactions

 

- a transaction is treated as irreversible if 80% of the Freinodes agree that it is included in the current block candidate

 

Decentralized Freinodes based proof of stake

Introducing Freinode voting:

- in each block, through using the proof of work hash, 10 Freinodes are chosen from the top 1000 nodes from the Freinode list.

 

Introducing Stake Transaction:

- each chosen Freinode can create a so called ¨stake¨ transaction

- each stake transaction must reference to one block and can only be included in the next block after this referenced block

- a mined block that has no referenced stake transaction has a difficulty of 20% of the original difficulty

- for each stake transaction that references the block the difficulty of the block is increased by 8% (at max 100%)
 

Introducing new coin distribution

- the block reward is:  transaction fees plus the demurraged coins

- each stake transaction claim use 8% of the block reward. Therefore in total max 80% for all 10 stake transactions.

- all not claimed block-reward can be claimed in the next block through stake transactions

 

Introducing Freinode reputation:

- each stake transaction can vote for two Freinodes (at max 1 for each Freinode)

- each stake transaction can flag (negative vote) one Freinode (at max 1 for each Freinode)

- a positive vote undoes all negative votes to the same Freinode

- a negative vote undoes all positive votes to the same Freinode

- the reputation of a Freinode is positive votes – negative votes counted for the last year

- A Freinode with a negative reputation cannot receive payouts and is not counted in the Freinode list / can therefore not take part in the staking