How does the Elastos (ELA) coin redistribution system work?

ELA's periodic coin redistribution system incentivizes network participation, potentially increases token value, and ensures fair rewards for stakeholders, including supernodes, vote holders, and ordinary ELA holders.

Jan 04, 2025 at 07:00 am

Key Points of Elastos (ELA) Coin Redistribution System

• DPoS Consensus Mechanism: ELA utilizes a Delegated Proof of Stake (DPoS) consensus mechanism, where stakeholders vote for their preferred delegates to manage the network.
• Supernode Interchain Model: ELA operates on a supernode interchain model, where selected supernodes play a crucial role in transaction verification and block production.
• Periodic Coin Redistribution: A certain percentage of ELA coins is periodically redistributed to stakeholders, including supernodes, vote holders, and ordinary ELA holders.

In-Depth Analysis of the Coin Redistribution System

1. Delegated Proof of Stake (DPoS) Consensus:

   • ELA employs a DPoS consensus mechanism, similar to EOS and Lisk.
   • Stakeholders vote for 21 candidate supernodes who are responsible for producing blocks and maintaining the network.
   • Supernodes earn rewards for their contributions, and stakeholders participate indirectly by voting for their preferred delegates.

2. Supernode Interchain Model:

   • ELA operates on a supernode interchain model, which involves a network of interconnected supernodes.
   • Supernodes are responsible for verifying transactions, producing blocks, and maintaining consensus on the ELA blockchain.
   • The interchain model allows for faster transactions and higher scalability.

3. Periodic Coin Redistribution:

   • A unique feature of ELA is its periodic coin redistribution mechanism.

   • Up to 10% of all ELA coins are periodically redistributed to stakeholders, including:

     • Supernodes: 3% of the total supply
     • Vote holders (stakeholders who vote for supernodes): 2% of the total supply
     • Ordinary ELA holders (holders who do not vote): 5% of the total supply
   • The redistribution process occurs every 2,102,400 blocks, or approximately every 55 days.
   • Coins are distributed proportionally based on the amount of ELA held or the voting weight of stakeholders.

4. Benefits of Coin Redistribution:

   • Incentivization: The redistribution system rewards supernodes, vote holders, and ordinary ELA holders, incentivizing them to support the network.
   • Token Appreciation: The periodic distribution of coins can have a positive impact on the price of ELA, as increased demand typically leads to an increase in value.
   • Transparency and Fairness: The redistribution process is highly transparent, ensuring that all stakeholders are fairly rewarded for their contributions.

FAQs

Q: What is the minimum amount of ELA required to participate in voting?

• A: There is no minimum ELA amount required to vote for supernodes.

Q: How do I vote for a supernode?

• A: You can vote for supernodes using an ELA wallet. Instructions can be found on the official Elastos website.

Q: When will I receive my rewards for voting?

• A: Rewards for voting are distributed during the periodic coin redistribution process, which occurs every 55 days on average.

Q: What are the benefits of holding ELA tokens?

• A: Apart from participating in the coin redistribution system, ELA holders can benefit from potential appreciation in the token's value, staking rewards, and governance rights.

Q: Where can I buy and sell ELA tokens?

• A: ELA tokens are tradable on various cryptocurrency exchanges, including Binance, Huobi, and OKEx.