By: R Andrews
Date: February 5th, 2019
Subject: Proof-of-Giving for Beginners
How do we explain Proof-of-Giving to a new user?
POG is a mining algorithm in BiblePay that rewards those who Tithed to the Orphan foundation from the wallets internal pool reward system.
The sum of tithes sent into the orphan foundation from your home wallet over the last 24 hours establishes your tithe_weight in relation to other users.
Once in the pool, you are certain to receive a pool reward within 24 hours (if you have tithe_weight greater than zero).
Note that the current POG difficulty determines your eligibility to tithe to the foundation. (When difficulty is high, the total tithe amount is restricted, and POG requires more coin-age).
The block solver (the reaper) receives 20% of the block reward, while the remaining 80% is split by tithe_weight with the pool recipients.
The POG reward occurs once per day, and all POG POOL recipients are paid at the same time (once every 205 blocks).
Let us assume we have 5 POG pool participants who tithed 10, 20, 30, 40, and 50 bbp respectively over the last 24 hours.
In POG phase 1, each heat mined reward is approx. 100~ BBP (this is 20% of the reward, the remaining 80% of the heat mined reward goes into the POG pool).
The financials currently look like this as of February 2019: Each block gross reward is ~15400 bbp, 70% is held back for the monthly budget and the PODC payments (10,800 bbp) leaving 4,800 bbp. (Note that PODC payments are still 1 million BBP per day in phase 1). Out of the 4,800 bbp, 4300 is given to the sanctuary, leaving 500 BBP per heat mined block (with 20% given to the reaper - 100 bbp, and the remaining 400 bbp going into the POG pool).
The POG pool accumulates a daily reward of approx 100,000 bbp (all values are deflationary). This amount is paid out once per 205 blocks as the POG pool reward.
To limit daily foundation tithes (this is primarily to prevent dilution of our price and to keep monthly charity expenses in-line with our emission schedule), the POG difficulty algorithm governs the amount of tithes accepted per day. The Tithe Cap is currently set at 50,000 per day. This means that the foundation will receive approx. 1.5MM BBP per month in tithes that will be liquidated for orphan expenses.
Let us assume the daily reward is 100,000 bbp (this is very close to the actual amount BBP will pay daily as of Feb 2019 with PODC + POG enabled):
|Daily Block Distribution - Reward:|
|Sower 1 reward:||5600 bbp|
|Sower 2 reward:||10400 bbp|
|Sower 3 reward:||16000 bbp|
|Sower 4 reward:||21600 bbp|
|Sower 5 reward:||26400 bbp|
|Total: 100000 BBP|
POG Difficulty Algorithm
The POG difficulty fluctuates between 0-65535, with 65535 being the hardest and 0 being the easiest. The difficulty is based on how many global tithes have been received over the last 24 hours. The pool has a maximum tithe per day cap (of approx. 100,000 - see the POG wiki for the exact deflation amount). As the pool gets more "full" and approaches its maximum tithe amount allowed per day, difficulty will be increased. Otoh, if the pool is empty, difficulty will be decreased.
The difficulty determines the minimum age of a BiblePay Coin (in your wallet) will be required to be allowed to Tithe. In this way, tithing is not "easy", you must have a coin meeting the minimum age and amount. You are also limited to how much you are allowed to tithe. These three parameters will be available on the UI for easy decision making.
Happy Giving, Generous BiblePayers!