FAQ on Ultrain Tokenomics - UGAS, Staking, and Commercial Applications
- What’s the utility purpose of UGAS
Enterprise clients use UGAS as a payment to purchases the blockchain service provided by Ultrain.
- The total Supply of UGAS？Total Lock Up Amount？
The total supply of UGAS is 1 billion; The second batch of locked up token for investors have just been unlocked recently. We prioritized the interests of investors with our unlocking structure. Up to now, we have unlocked 50% of tokens for private equity investors and one-sixth of the token for management team quota. a total of 75 million tokens have been unlocked.
- Who will purchase UGAS？
UGAS are purchased by its business ecosystem participants。
First of all, miners purchase UGAS as a stake to function as a mining node. Currently, there are 320 mining nodes on the network, each node needs to stake 42,000 UGAS (a total of 13.44 million UGAS). Since the rate of return for Ultrain’s mining nodes on staking is much higher than other POS projects, each batch of mining nodes is sold very quickly. We expect more than thousands of mining nodes to function on top of the network by the end of this year, which makes Ultrain a project more decentralized than the vast majority of public chain projects.
Then there are enterprise and Dapp developers who need to stake UGAS to use enterprise services. Large enterprise applications have their own customized side chains, each side chain requires a minimal stake of 4 million UGAS. Currently, there are three side chains running on top of Ultrain and will increase in the near future.
In addition, our strategic partners, such as Tokenview, also hold a large number of UGAS.
- How to acquire UGAS？
Beside purchasing UGAS on mainstream exchanges, they can also join us a mining node to mine UGAS. The annualized rate of return for our mining nodes is as high as 94.99%, far exceeding similar POS projects. If you think joining our network as a node requires too much effort, you can also take staking through our strategic partner Tokenview, with an annualized rate of return of 16%.
- What’s the security model of UGAS？
The core of security protection is underlying “cost of attack”, and what security specialists can do is to increase the cost for an attacker as much as possible. Bitcoin's approach is to secure the bitcoin network through the cost of mining rigs and mining effort. The security performance of Ultrain's RPoS exceeds that of PoW.
First of all, the randomness of the RPoS mechanism guarantees that there is no central node (or super nodes) in the Ultrain network, and all mining machines are treated as equal, so the cost of attack is much higher than the cost of attack on DPoS, almost similar to PoW; Similar to other PoS mechanisms, we stake UGAS to increase the cost of mining. It takes one month for the miner to unlock their staking UGAS, and stake UGAS will be taken away from a node that attempts malicious attack to increase the cost of such attack; Finally, we borrowed an idea commonly used in Internet security, the innovative introduction of the concept of “credit value”. This approach suggests that when mining rigs are first connected to the Ultrain network, it cannot directly mine, but takes about 1 month to accumulate creditworthiness. The mining nods can mine when it accumulated a certain level of credit. If a node is manicous, the credit value will be directly deducted to 0 and starts credit accumulation again. The purpose of this credit system is to increase the cost of time. Whether it is the preparation period of one month before the start of mining, or the deduction of the "credit value" to 0, it directly raises the cost of attack.
For some PoW networks with less network computing power, you can easily launch 51% attacks by renting cloud servers. The cost of an attack is low, and the operation is convenient. Many minor PoW networks were attacked by similar methods last year. It's not that simple for RPoS, because it is not enough to attack the RPOS, rent cloud computing power to attack is not enough. Each mining machine needs to stake 42,000 UGAS and needs to wait for 1 month for credit clearance. The overall cost of an attack is significantly high, so our RPoS is more secure than PoW.
- What are the advantages and disadvantages of the UGAS economic system for the Token holders?
The design philosophy for the Ultrain economic system is to connect with the real economy. Ultrain’s service creates value for the real economy. The real economy, referring to an existing business client in the traditional or internet industries, injects value creation into the Ultrain economy through the form of service fees, which benefits the Ultrain economy for its long-term development.
Under this design, UGAS, as a utility token in the Ultrain economy, is naturally supported by the value of the injected fiat currency. This design is rarely seen in the blockchain industry. In a series of Utility Tokens, we rarely see such a valuable token that has corresponding FIAT value. Meanwhile, in a system similar to Ethereum, each call of a smart contract requires payment of Gas, and the price of Gas fluctuates with the price of eth, the cost of using the Ethereum smart contract will be extremely high when eth price increase sharply. In Ultrain, we use the reasonable design and dynamic adjustment of the system to minimize the risk of dramatic fluctuation in price, which is a friendly approach to enterprise users and DApp developers.
Ultrain's economy was designed with the interests of all participants in the entire blockchain ecosystem in mind. This participant includes miners, Ultrain technology development team, DApp development team, and community members. In order to better motivate the participating parties, Ultrain's mining rewards are not just rewards for miners like the BTC or ETH system, but will be divided to four different parties, 80% of which reward miners, 10% reward excellent DApps, and 5% reward technical teams. 5% of the outstanding contributors to the community, the accounts of these awards are publicly recorded on the chain available for access.
Public Address of Foundation——0xa45191C69a02b4291E5a2Fdb37011091013EA9A0
Public Address of Enterprise Stake——0x68e9ffb81bf60645F2b73Fb28959532d68eBb599
Public Address of Miner Stake——0x8D8ABc4DbD1B4bfCb139e8cF5A0e2095015a630d
- What are the advantages and disadvantages of the UGAS economic system for miners?
For miners with fewer resources, we hope to lower the barrier of entry for mining. The current requirements for our mining nodes are common server hardware configurations. In the future, we hope that the configuration requirement can be reduced even more, and the unused equipment (such as pc or laptop) of ordinary users can also participate in blockchain calculations and earn income. At the same time, mobile devices can also participate in the network through an app and execute some computing power to require less high-level verification work, which is also more decentralized.
For large miners and mining pool, although the current income is relatively high. our philosophy is that larger miners or mining pool shall have no excess income relative to small miners, to demonstrate that Ultrain network represents a completely fair network. This is also the technical direction we chose to further explore in the near future, and a path we choose when we initially designed our mining algorithm.
- What is the yield of UGAS mining? How to calculate?
The current conservative calculation annualized rate of return is 94.99%, which is much higher than other projects. In fact, the actual benefits of the previous batches of mining node are still higher than this level. The mining revenue depends on factors such as the number of business users, the number of miners, the number of side chains, etc. Our app has real-time statistics on the whole network and the current mining revenue, which can be easily seen on the app.
- For enterprise users, what are the advantage and disadvantage of Ultrain’s tokenomics？
Ultrain positions itself as a commercial chain to provide trust computing services to businesses. Ultrain can be perceived as the “Windows operating system” of the blockchain industry. The high performance, low cost and comprehensive privacy protection scheme of Ultrain can help enterprise customers to use the blockchain service in a one-stop, fast and cost-effective manner without having to consider many technical problems at the time.
In essence, trust computing provides enterprises with the ability to build a low-cost trust system based on blockchain technology, so that the business partners in both upstream and downstream of the industry chain can trust each other, a partnership between upstream, downstream parties can be integrated at low cost. The business collaboration model is upgraded into a business ecosystem, leads to more revenue and profits.
Take YOHO as an example, it is an e-commerce platform for street fashion, its sneaker trade platform focuses on limited-edition sneakers trading, with prices ranging from thousands to tens of thousands. Generally speaking, after the buyer and the seller reach a transaction consensus, the seller will first send the sneaker to the YOHO, then the sneaker will be quality verified to ensure that the shoes are genuine, and then an NFC label is attached. Record the transaction information and transfer it to the YOHO platform and onto Ultrain chain, and finally send the shoes to the corresponding buyers.
However, the real value is not only with the interaction of information. Many people buy shoes that are not for the purpose of wearing them, but for investment and resell value. After they buy sneakers, they may sell to the second-hand e-commerce website at a higher price. In order to enhance the credibility of the sneaker product, the buyer will have the motivation to check the sneaker information and transaction information recorded on the platform and blockchain, thereby increasing the number of users of the YOHO platform.
The incorporation of Ultrian’s blockchain helps YOHO to accurately accumulate target users; hundreds of millions of users. Giving the cost of this precise marketing to acquire user is actually very high (200 yuan per user), the blockchain solution just proposed achieves such result at no additional cost.
Now, there are more than 1,000 transactions on Ultrain every day, and it is expected to reach 500,000 orders this year. Based on this estimate, they can help them save tens of millions on marketing expenses.
- When compared with other Blockchain technology solutions, what advantage does Ultrain have？
Ultrain has a competitive advantage in pricing. Compared with the similar type of blockchain service provided by Ethereum and EOS, on the one hand, these public chains do not have a mature enterprise service technology team, and Ultrain can provide enterprise technology development services based on Ultrain; On the other hand, Ultrain's cost of use is 1/20 of Ethereum and 1/30 of EOS. At the same time, compared with the permissioned chain, Ultrain is similar to the use of cloud services for public use. Enterprises can spend 100,000 RMB to purchase blockchain service for one year, and the permissioned network requires at least a million for their investment.
For the semi-centralized EOS platform, from a business perspective, if one of my applications is deployed on EOS. Assuming the first-year service fee is at 1 million, and then they realized that I can earn 100 million in revenue, and the 21 supernodes decide to charge 10 million for service fees, how should I deal with it? What should I do if the 21 nodes are conspiring to threaten to modify my data on the chain?
For enterprises, data is a core asset. Instead of trusting 21 supernodes, it is better to trust a cloud service provider; but at the same time, companies cannot trust a cloud service provider, because they may compete with other internet giants. They are very wary of putting data in a cloud service provider,clike Alibaba Cloud or Amazon Cloud;
Such concern is resolved in the decentralized public chain because no one can control the public chain, and there is no problem of conspiracy. In the Ultrain public chain, the enterprise service fee and the currency price are separated, allowing an enterprise to deploy their commercial application on a blockchain with a stable budget expectation.
In Ethereum, its performance cannot meet commercial applications, because Ethereum's design TPS is relatively low, resulting in that the current eth transaction fee is $0.10. YOHO have least 500,000 transactions expected this year. If Ethereum were proving the service, the transaction fee will be about 50,000 US dollars, which is very difficult for a start-up business. For Ultrain, the average transaction fee is only $0.01 per transaction, and the cost is one-tenth of Ethereum.