In today's rapidly evolving blockchain world, Chromia, a layer 1 relational blockchain platform, is committed to advancing Web3 technology. With the launch of the mainnet, Chromia will introduce an innovative economic model designed to provide reasonable compensation for service providers while supporting the continued development of the ecosystem. This article will take an in-depth look at Chromia’s initial mainnet economics, including important details such as resource pools, subsidy mechanisms, and staking requirements.
Resource pool and subsidy mechanism
In Chromia's economic model, all container rental funds will be concentrated into a resource pool. This resource pool is not only used to pay the basic fees of service providers, but can also obtain subsidies from the system node compensation pool and ecosystem funds when necessary. This subsidy mechanism ensures that service providers receive stable income even in the early stages of the network, which is crucial for the establishment and development of the network.
As the network expands, the amount of subsidy required will gradually decrease. According to model predictions, when the network reaches 11 dapp clusters, the system will become self-sufficient and begin to generate surpluses that will be used to further build the ecosystem.
Resource pool allocation
In the Chromia ecosystem, the allocation of resource pools is very critical. System providers are compensated for running the system chain of Chromia’s core functionality, while dapp providers are compensated for running clusters of dapps hosted on Chromia. All provider incentives (including network fees and subsidies) will be adjusted based on uptime. For example, a provider with 95% uptime would only get 50% of the bonus, but 100% uptime would get 100% of the bonus.
In addition, providers will automatically share 10% of their total rewards with stakers who delegate to them, a mechanism that will begin with the launch of native staking at the end of Q3. Such a design not only promotes provider enthusiasm, but also enhances the stability of the entire ecosystem.
The Chromia Foundation’s role
The Chromia Foundation is a non-profit organization registered in Switzerland dedicated to promoting the development of the Chromia ecosystem. Its mission is to promote the development, adoption and understanding of the Chromia network and engage in a variety of activities, including supporting R&D projects, providing educational resources, sponsoring events and workshops, and more. The foundation is funded by 10% of all network fees, which will be used to further develop the Chromia network and its ecosystem.
Staking requirements for network providers: Staking is an important mechanism to ensure that all providers have a vested interest in the integrity and performance of the network. According to the plan, CHR’s staking requirements will be implemented in phases after the launch of native staking, which is expected to be launched at the end of the third quarter of 2024. The specific requirements are as follows:
Dapp providers must own a total of $100,000 in stakes, with up to $90,000 in stakes from representatives.
System providers must maintain a total of $200,000 in shares, with a maximum of $180,000 in shares from representatives.
Staking requirements will be adjusted regularly based on CHR market value, network TVL and other ancillary factors, at least once every three months. If the provider fails to meet the requirements, it will have 2 weeks to reach the staking threshold, otherwise payments will be suspended until the requirements are met.
Mainnet specifications and node requirements
At mainnet launch, the specifications of the Chromia network are as follows:
Number of clusters: one system cluster, one dapp cluster
Number of system providers: 16
Number of Dapp providers: 7
Regarding node requirements, the system node requires 64 SCU hardware (32 high-frequency vCPUs, 128GB high-speed RAM, 4TB NVME SSD storage), while the dapp node requires 124 SCU hardware (64 high-frequency vCPUs, 256GB high-speed RAM, 8TB NVME/PCI-E high-speed SSD storage), and the benchmark score in the Postchain benchmark test is preferably below 1000ms (single node) or 2000-2500ms (multi-node).
in conclusion
Chromia’s economic model is designed to ensure that service providers are fairly compensated while supporting the growth and sustainability of the ecosystem. Through careful resource allocation, subsidy mechanisms, and staking requirements, Chromia hopes to build a strong and self-sufficient network. As the network matures, ongoing adjustments will ensure it meets the changing needs of participants and stakeholders.
In the days to come, Chromia will continue to promote technological innovation and provide better services and experiences for users and developers. As the Web3 business model evolves, Chromia will become an integral part of the blockchain ecosystem.