UTXO Mining
UTXO Mining
In this ecosystem, a reward will be given to a new miner who provides a distinct unspent set of signed coins from a partner currency PLUS BiblePay, or BiblePay alone. This transaction establishes proof that you hold a long position in that supported partner currency, therefore earning you a position in your BBP portfolio tracker, and a chance to win the current block reward (9000 BBP as of Jan 2021).
This idea theoretically appeals to millions of distinct cryptocurrency users who are seeking a staking return on their crypto holdings.
The block reward gives the UTXO miner the impetus to sign the coins and place them into BiblePays ecosystem.
The longer term benefit includes a constant daily ROI stream for your positions from our daily GSC superblock.
Daily Portfolio Rewards
Modify the Leaderboard, to be a list of participants who hold long stake positions. Each participant CPK will contain the sum of the amounts staked, the distinct list of tickers, and the magnitude, which drives the daily reward.
UTXO Staking Mechanics
A reward weight of .50 is given to BBP, .50 to DASH, .50 to BTC. A UTXO transaction either consists of BBP + a foreign crypto, this gives 1.0 * USD value, or BBP alone which yields .50 * USD value.
Therefore people who only own BBP can stake coins and earn block rewards, and maintain a BBP long position. Or people with a partner currency can earn double the reward.
The wallet will automatically stake oldest coins when creating a Miner Stake transaction. In order to win a block the BBP coins must be older than 24 hours old (this prevents gaming the system for mining rewards).
(Remove PODC, add UTXO Mining rewards).
Role of the Sanctuaries
In addition to being a sponsor for orphans, the sanctuaries will be our Oracles. They will loop through the list of UTXOs, and confirm them. Each day, the GSC reward contract will be verified and only bona-fide stakes will be counted.
Mining Transactions
Remember that we will not get rid of RandomX, therefore the chain will still be secure. Know that even with a 99% lesser RandomX reward, the security will be maintained simply because BBP is merge mined, meaning that it is required that the miner solves the XMR block header (therefore security is still high) even if the reward is reduced.
Therefore we can shift our RX rewards over to Staking Rewards (for our new stake transactions).
If there is no new stake transaction in the current block, the reward continues to go to RX as usual. However if we do have a stake transaction - meaning that someone in our network staked a UTXO + BBP in this timeframe, the block reward will be given to the top staker (in case there is more than one) sorted by UTXO uint256.
The way the mining works is the core wallet will have a staking command that accepts the UTXO argument. BBP will automatically combine this with an applicable BBP UTXO, and will lock these coins. Then it will send a staking transaction to all participants with this info in the chain. This reference will be the perpetual reference point for future rewards, forever, or until the UTXO is spent (if either the BBP or the foreign currency is spent, the contract is nullified).
Rewards are paid daily from our Portfolio leaderboard.
In this way our participants can create custom tailored long crypto positions and earn rewards driven by our market conditions!
Self Advertising
One nice aspect about UTXO mining is it theoretically is self advertising. With PODC, we have a niche where you need to be a sort of power user to run rigs and set it up for mining, but theoretically with UTXO mining anyone who stores coins can set up a reward stream, especially if we create a signing tool that makes it easy to participate. And we still have our RandomX POW to fall back on during periods of non-staking.
If the word gets out that one may earn staking returns on latent crypto, theoretically millions of UTXOs can be locked and word of mouth increases. In contrast to diminishing returns with mining to pay for electricity.
HOW-TO Guide to Send a UTXO Stake
We currently support BTC, LTC, DOGE and DASH hybrid staking, and singular BBP easy-staking. Note that we call the non-biblepay receiving address the 'foreign receive address' and we call the BBP receive address the 'native receive address'.
To create a stake you just need the 5 digit pin of the foreign receiving address. To find this, go to BBP RPC, and type
getpin foreign_address
and BiblePay will respond with the 5 digit pin.
Now that you have the 5 digit pin, to create a stake, go to your light wallet (or full wallet) of choice for the foreign currency and send an amount to your own foreign receive address that you wish to stake, however you must add an amount in the suffix equal to your 5 digit pin. Note that the suffix must be either 5, 6, 7, or 8 digits long (after the decimal point).
As an example, let us say you want to stake 1000 DOGE, and your DOGE pin is 12345. In this case you would send: 1000.12345 (or you can send 1000.012345, or you can send 1000.0012345 or you can send 1000.7512345 - all of these are valid).
As a second example, let us say you want to stake .10 BTC, and your BTC pin is 23456: Send .1023456 or .10023456 - either are valid).
Next, go to biblepay, and type:
easystake min_bbp_amount foreign_address 0/1
Where min_bbp_amount is the corresponding amount of BIBLEPAY that you wish to stake, and foreign address is the receiving address you sent the funds to.
For more information see here: https://forum.biblepay.org/index.php?topic=748.msg9967#msg9967
How To Video - An example session staking 1 LTC with easystake
Please see our how to example video:
https://foundation.biblepay.org/Press/How_To_Stake_With_BiblePay.mp4
