ICON IISS Yellow Paper Update: New Incentives and Penalties for ICONists

Libra Coin News
Wed, 07/31/2019 - 08:50
Denis Sinyavskiy
ICON Yellow Paper brings many changes to the system on the path to true decentralization. Incentives and penalties have been changed
Cover image via U.Today

ICON continues to move towards genuine decentralization, so the IISS (ICON Incentives Scoring System) Yellow Paper has been updated. The main changes were network governance, as well as incentives.

One of the main tasks of any decentralized network is the consistency of incentives among all participants, and most importantly, the motivation not to harm the network, as it was in the situation with EOS.

Who is the most worthy?

In September, one of the most important events in the network will be held — the election of 22 P-Reps. These public representatives will operate the complete nodes in the ICON network. Elections will be the first milestone of ICONSENSUS. Preparing ICONists for the upcoming elections, familiarizing them with incentives and penalties — this is the Yellow Paper task.

Here are some key ideas from the document:

  1. Penalties for malicious actions of P-Reps are subject to penalties. Such actions include the offer of an invalid block, low performance or inactivity for a long period of time. For ICONists, penalties also apply.

  2. The owners of the ICX will receive awards for participating in elections, however, there is also a downside. If to vote for the evil representative, you can get a penalty for his subsequent actions.

  3. The system of distribution of ICX will undergo changes. A new system will reward network contributors from transaction fees first, and only then by creating new coins. This algorithm will reduce inflation.

Last but not least, Delegated Proof of Contribution (DPoC). Consensus protocol incentivizes network participants in accordance with their input. P-Reps are considered “most contributing”, for which they receive the maximum reward, the rest of the distribution and all innovations can be found directly in the ICON Yellow Paper.

About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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