About Node Rewards and Economy Model

New Generation DeFi Public Chain Website has been updated with a new look:

www.hashgard.com

We have announced recently GARD SWAP plan and reward mechanism.

Deflation! After the mainnet goes live, ERC-20 GARD will be converted to mainnet GARD at a ratio of 10:1!

Many community members have questions about the value of GARD and its perspective. This article will focus on the perspective of GARD, economy model and node rewards.

Value of GARD

It is believed that Token represents the foundation of ecosystem governance, the right to use the public chain and also the proof of ownership.

Each GARD holder is part of Hashgard public chain ecosystem and an important part of the community. Hashgard public chain belongs to the community.

GARD carries a series of functions on public chain such as staking, gas fees and proof of rights, etc. We hope to enable GARD greater liquidity and higher value. Therefore, as a system-level token of Hashgard public chain, GARD serves as a medium for value transfer and represents the use right. Here we list its main functions as below:

1. Stake GARD to become a validator node or hService provider;

2. Vote to participate in community governance;

3. Pay fees to the system or application;

4. Block generation rewards for active validator nodes;

5. Used for Ecosystem construction.

In addition, the tokens in Hashgard network include system-level tokens and app-level tokens. GARD is used as a system-level token, applied to blockchain scenarios such as using systemic rights and interests, using public network resources and building applications, etc.; application-level tokens are independently created by application developers and may be used in related DAPP. Application developers can decide which token to use as the payment method.

For example, on Hashgard public chain, a developer initiated a decentralized lending DeFi protocol and issued the corresponding Token. Developers can choose whether to use GARD as the base currency in their DeFi protocol or use its Token.

We believe that in the future, GARD will not be inferior to other public chain Tokens such as ETH and ATOM.

We have informed the community members about the GARD deflation.

Hashgard Foundation decides to fix the conversion ratio at 10:1, thus, the total quantity of GARD in circulation will be decreased to 10 billion. 90% of the total supply, thus 9 billion is circulating in the market.

The node rewards as well as the unlocked GARD dedicated for the team will also be converted at the ratio of 10:1.

The total quantity of GARD needed for ecosystem building will also decrease according to the ratio 10:1.

1. The total quantity of GARD will decrease to 1/10 and GARD unit price will increase by 10 times. Hashgard team will communicate with the Exchanges to burn ERC-20 GARD and get mainnet GARD listed with the opening price increased by 10 times.

2. To become a node operator candidate, the minimum quantity of staked mainnet GARD amounts to 20 million.

3. One year from the mainnet launch, Hashgard Foundation will subsidize 1 billion mainnet GARD to all nodes.

4. The first 20 billion ERC-20 GARD holders who take the initiative to SWAP GARD will receive additional 10% incentive GARD. Hashgard team will communicate with cooperative exchanges to help SWAP GARD.

5. Since the incentive GARD are limited. First come first served. We strongly recommend that all GARDIANS complete GARD SWAP on their own.

6. If you don’t SWAP GARD and they are not stored on Exchange, they will become untradable.

A demo video shows how to SWAP GARD.

Calculation for node rewards

Many community members raise questions about node rewards

Similar to Cosmos, 2% of the block generation rewards will be used as a community fund and put in the funding pool.

The second part is package rewards, that is, for each block generated, after deducting 2% community fund, 5% will be taken out to reward the node that has participated in the block package. The probability of block packaging is related to the quantity of staked GARD. The more GARD staked, the more likely to package blocks.

The third part is what we usually call block generation rewards. It will be distributed to the node according to the proportion of staked GARD. Nodes with more staked GARD will get more block generation rewards.

Therefore, the total quantity of node rewards equals (mainnet GARD):

Total node rewards = [Single block generation reward (120Gard/block in the first half year, 60Gard/block in the second half year) * Number of blocks * 98%-Number of blocks * Block package reward]

Rewards for a certain node A:

(The amount of staked GARD on node A / the total amount of staked GARD on chain) * Total node rewards = Rewards for a certain node A

If we stake the same amount of GARD on 11 nodes, the annual rewards for each node amounts to about 89 million GARD, which is about 29000 dollars based on the current GARD market price. And the community node does not need to bear high server costs.

The community members (not the operator) who stake GARD to the node can also obtain rewards, which will be distributed according to the ratio of staked GARD. Of course, the node operator will also obtain 10% of the node rewards as commission. (Commission ratio is determined by the node operator).

Rewards for A:

(Amount of staked GARD from A/Total amount of staked GARD) *(node ​​rewards-commission) = Rewards for A

For example, there are currently 11 validator nodes on chain, with a total amount of 5 billion staked GARD. A staked 300 million GARD on node 2 and became the node operator. B also staked 200 million GARD on node 2. Therefore, 500 million GARD are staked to this node.

If a block is generated every 3 seconds, 28,800 blocks will be generated per day and 3456000 GARD per day. After deducting the community fund and block packaging rewards, all the nodes share 3386800 GARD. The amount of staked GARD on node 2 accounts for 10% of all nodes. Therefore, node 2 will be distributed 338680 GARD per day. A as the node operator, will receive 10%, thus 33868 GARD. The remaining 304812 GARD will be distributed proportionally by A\B, A will get 182887.2 GARD while B can get 121924.8 GARD.

Hashgard is a new generation decentralized finance public blockchain. Garding the Realm of Blockchain!