A consensus and reward distribution scheme with two tunable parameters trading off between Stake or Space secured consensus and rewards.
The parameter defines whether the consensus is secured by Stake or Space.
The parameter defines the share of rewards distributed towards Stake and Space.
- : results in a pure Proof of Stake, where the Space doesn’t benefit consensus participants.
- : results in a pure Proof of Space, where the Stake doesn’t benefit consensus participants.
- and are degenerate cases which do not reward consensus participant.
- - share of the stake for given participant
- - share of the space for given participant
- - share of the target block reward transferred to a participant given that they won a block
Equations 1 and 2 define the two primary goals of the scheme, securing the protocol (by selecting winners) depending on the and giving out rewards depending on .
Equations 3, 4 and 5 derive the share of the block reward that a given participant should receive when they win a block. When the is equal to . Equations 4 and 5 are sound, as division by zero cannot arise because the participant cannot win a block.