The Ekasi Bucks token is an ETHEREUM DEVELOPED ERC20 STABLE TOKEN that is backed up by the South African Rand.
Ekasi Bucks (EKB) uses a Hybrid Proof Of Work and Proof of Stake velocity Protocol. The EKB algorithm is similar to the one which was first introduced by Reddcoin where Network nodes in Proof of Stake Velocity create coins by storing a small amount of the cryptocurrency in their wallet and having it online.
Unlike Traditional proof of stake algorithm which calculates weight as a linear product of age, POSV algorithm calculates weight on newly created coins quickly and old coins gain weight slowly and thus offers an incentive for nodes to be be active to verify transactions and keep the network secure.
Under PoSV, your returns are greatly influenced by how often you successfully stake. This is due to the mathematical formula of PoSV, and not a product of how often your interest is compounded.
⦿Selection of the creator of the next valid block is made by using deterministic randomization formulas that take both the stake size and the lowest hash value into account, therefore avoiding centralization of the cryptocurrency by not letting the richest members of the network accumulate more wealth.
⦿In POS algorithm the transactions are processed at least twice faster than POW based transactions this will allow merchants and customers transacting for various goods and services to confirm and validate transactions more speedily and ensure that there is less network clogging.
It is used to transact on some of the platforms under the Ekasi Bucks Ecosystem
EKB VIRTUAL MALLS
EKB START UP SECURITIES
- Name: EKASI-BUCKS
- SHORT NAME: EKB
- Total Supply: 100 000 000 EKB
- TYPE: POW/PoSV (Proof of work/ Proof of Stake velocity)
- Last POW Block: 20 000
❶ Static POS interest: 5%+ per week
❶ Block generation time: 60 seconds
❶ Block reward: 5 Ekasi Bucks
❶ Change difficulty: Every block
❶ Stake min age:7 days
❶ Stake Max Age:30 days
❶ Additional coins issued:Yes
In its most basic form, we can think of PoSV simply as compounding interest. It was designed to offer 5-6% interest, compounding every time you stake (produce new coins). For a rough approximation of returns under near optimal conditions, we will calculate the returns for 5% interest compounded daily.
To begin understanding PoSV, we need to first understand when, or how often, you stake.
It’s easiest to think about this in terms of a lottery. Everyone with Ekasi Bucks has many “lottery tickets.” Approximately every minute, one lottery ticket is chosen, and whoever wins gets awarded newly created coins.
If you have Ekasi Bucks in your wallet, you have some lottery tickets. Whoever has the most lottery tickets has the best chance of winning. To enter the lottery just make sure your wallet is staking, and it will enter the drawing for you every minute.
Before we can understand how many tickets each person gets, we’ll need to review a few important concepts.
What is staking ?
Staking is the process your wallet uses to validate transactions and award you with coins. When your wallet is staking, it is checking transactions to make sure everyone who sends coins actually owned those coins and had the right to transfer them. If most of the wallets online agree that a transaction is valid, then it gets accepted by the network. This concept of consensus is essential to all digital currencies, and is what keeps Ekasi Bucks secure.
In order to stake, ensure that your wallet is encrypted and unlocked. By keeping your wallet open, it will stake automatically.
When you encrypt your wallet, make sure to use a strong password that you will never forget. You cannot recover your password or coins if you forget your password.
As a reward for keeping the network secure, every minute one person is chosen to receive some interest on the coins they own. Whoever has the most “lottery tickets” has the best chance of winning the award.
Your lottery tickets are referred to as your “Weighted Coin Age” or simply weight, and your weight is a non-linear product of coin age.
What is coin age ?
Quite simply, coin age is the age of your coins. Imagine you get a new wallet and start out with zero coins. On Monday, your friend sends you 5,000 coins. On Wednesday, you decide to buy 10,000 more coins and withdraw them to your wallet.
Assuming it’s Thursday, you’ll have two groups of coins. The first group of 5,000 has 3 days of coin age, and the second group of 10,000 coins has 1 day of coin age.
When coins are sent to another address or successfully stake (generate interest), their coin age is reset.
It’s important to recognize that staking happens in groups. So, following our example above, if your first group of 5,000 coins stakes, you’ll get an interest payed on those 5,000 coins, not your entire balance of 15,000 coins.
Additionally, coin age will be reset on your group of 5,000, but coinage on your second group of 10,000 will continue to grow until they stake or are used in a transaction.
What is the network weight, total weight, and expected timeuntil next reward ?
A block is essentially a group of transactions. When you stake, your wallet attempts to “Solve” the current block by making a guess about an unknown password which unlocks the block. It takes a lot of guesses to find the password, but once you find it, you inform all the other wallets that you found the block and tell them the password you discovered.
The other wallets will check that password to make sure it actually unlocks the block. When enough of them report back that your password was correct, you have solved the block and as a reward you get paid interest.
In PoSV, the more coin weight you have, the easier it is for you to guess the password. Each block has many “passwords” and it’s possible that two people solve the same block. When this happens, Ekasi Bucks will give the award to the person who has the most coin weight.
The network weight can be understood as the number of tickets available for this lottery. In practice the network weight is the sum of “weighted coin age” of all the coins which are staking at this moment accross the entire network. Let’s call this number NW (for “network weight”).
Now your total weight is the number of tickets you own which allow you to participate in this lottery. It is calculated by summing up all the coinage of the coins which are staking in your wallet. Let’s call this number TW (for “total weight”).
A visual representation of your “Tickets” compared to total tickets.
Now you need to know that this lottery is fair in the sense that each “ticket” is equally likely to win on the next round. The details by which the winner is found is internal to the protocol implementation.
That being said, since different participants own different number of those tickets, the more of them you own, the quicker you can expect to be a winner, this is the expected timeuntil your next reward. Of course the lottery is random so nothing is 100% certain. It could effectively take less time (if you’re lucky) or more time (if you’re less lucky :P) than the expected time for you to actually win. But in the long run, those differences average out and you would see that the expected time is pretty accurate (as long as you keep your wallet online 24/7).
To be more mathematically specific, on each minute round you have a chance NW/TW to be the lucky winner. It is a simple result that as a consequence the expected time to be a winner is NW/TW minutes.
Expected Time Until Reward
Let’s now see how these things work in practice. Let’s assume that right now the network weight is about 13B (13,000,000,000) and that your total weight is 100m (100,000,000). According to what we explained above the expected time will be
13B/100m = 130minutes
so in expectation to get a reward, it would take you about 2hrs in that case. Check it with your wallet and see if the formula works!
Just to put things back in the context of posv, winning here means discovering a block which will not only award you those precious EKB but will also validate the most recent transactions for the network. That’s how you get rewarded for providing a useful service to the community!
What is the average weight ?
We mentioned before that in the wallet, coins stake in groups of coins which arrived in your wallet during a single transaction.
Your EKB wallet is made up of several groups of coins depending when you received the coins and which have staked and which are still in the staking process. Now each such group has a corresponding coin weight. As we said in the previous section the total weight is the sum of all those group’s coin weights. Now the average weight is simply the average of the coin weights of each group!
So how is weight calculated?
The calculation of coin weight is the core of PoSV. Like traditional PoS, the weight is a product of total coins (stake) and the average age of those coins. In contrast to traditional PoS, which calculates weight as a linear product of age, PoSV uses an algorithm where new coins gain weight quickly, and old coins gain weight increasingly slowly. This is how PoSV offers a big incentive to be active.
POSV coins start to accrue weight slower than POS. This is why it is said that POSV encourages staking over a relatively short period of time compared to POS.
How much do I earn when I mint?
Every time you successfully stake coins, you get paid interest on the weighted age of those coins. To make this more clear, we’ll use some examples and compare weighted age (PoSV) to calendar age (Traditional PoS).
With traditional PoS, coins are not age-weighted. One calendar day corresponds to one coin age day. What this means is that you could gather 10,000 coins and close your wallet for a year. When you open it back up, your coins would have gained a year’s worth of age. Since they’re so old, they’ll have a high probability of staking immediately. When they do stake, they’ll pay the entire year’s worth of interest. So those 10,000 coins will pay 5% interest (500 coins) on 365 days worth of age. Similarly, if they were to stake with an age of one month, they would earn one month worth of interest at 5% (~42 coins)
With PoSV, interest is paid on the weighted age instead of the actual age. So if you have 10,000 Ekasi Bucks Tokens which stake with a calendar age of one year (365 days) you’ll only get paid interest on 41 days. This means you would only get a return of 57 coins, instead of the 500 they would have got in traditional PoS. This is a great incentive to keep your wallet open and secure the network.
In contrast to the example of staking with old coins, EKB offers an extra reward for coins that stake with a low age. According to the PoSV algorithm, a coin which stakes with a calendar age of 7 days will receive 5% interest on 8 days. This means that under optimal conditions, you can receive more than 5% interest.