Let's talk about $Saito
A blockchain solving a multitude of economic problems that have caused incentive issues in the past.
We will be discussing the technology, fundamentals and tokenomics to help you understand better.
Let's dive in...
THREAD/🧵
A blockchain solving a multitude of economic problems that have caused incentive issues in the past.
We will be discussing the technology, fundamentals and tokenomics to help you understand better.
Let's dive in...
THREAD/🧵
As we discussed about Research Methodology in this Medium article (linked below),
We first must discuss the problems that $Saito aims to solve.
medium.com/@crypto8fi/how…
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We first must discuss the problems that $Saito aims to solve.
medium.com/@crypto8fi/how…
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The issues $Saito aims to solve revolves around thee traditional scalable commercial blockchain.
It is difficult to be:
-Open
-Secure
-Self Sufficient (decentralization)
Often there is the compromise of one of these.
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It is difficult to be:
-Open
-Secure
-Self Sufficient (decentralization)
Often there is the compromise of one of these.
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With Proof of Work (PoW) and Proof of Stake (PoS), people tend to do what is in their best interests.
Not in the best interests of the network.
This is because they are affected by the tragedy of the commons and a free rider problem.
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Not in the best interests of the network.
This is because they are affected by the tragedy of the commons and a free rider problem.
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The tragedy of the commons problem leads to blockchain bloat and eventual collapse.
A free rider problem leads to an under provision of user facing network infrastructure and an over provision of paid activities like mining and staking.
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A free rider problem leads to an under provision of user facing network infrastructure and an over provision of paid activities like mining and staking.
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Examples of these economic attacks include but are not limited to:
-51% attack
-Tx monetization
-Fee hoarding
-Free riding
-Collusion + Cartelization
Solutions?
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-51% attack
-Tx monetization
-Fee hoarding
-Free riding
-Collusion + Cartelization
Solutions?
/5
$Saito eliminates economic attacks from consensus layer by making it possible to extract value.
Introducing a new form of work, collection and sharing of money.
All nodes in the network on fee collection, collect fees in their mempool.
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Introducing a new form of work, collection and sharing of money.
All nodes in the network on fee collection, collect fees in their mempool.
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A mempool is a smaller database of unconfirmed or pending transactions which every node keeps.
When they have enough fees they can produce a block.
The value of each fee for doing this haves.
Its tx is taken into the network.
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When they have enough fees they can produce a block.
The value of each fee for doing this haves.
Its tx is taken into the network.
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Deeper you are in the network, the more inbound fee-flow you need to produce blocks at a competitive rate.
By using this mechanism described, it produces a block while burning the fees.
Thereby helping the blockchain be "open" and "secure".
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By using this mechanism described, it produces a block while burning the fees.
Thereby helping the blockchain be "open" and "secure".
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So how does @SaitoOfficial become "self sufficient".
Through the process of "hashpower lottery".
Half of the rewards is given to routing nodes and half to mining nodes.
Paid proportionally to miner for the value they provide.
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Through the process of "hashpower lottery".
Half of the rewards is given to routing nodes and half to mining nodes.
Paid proportionally to miner for the value they provide.
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Thereby,
$Saito is only profitable to play with if you are an honest node routing tx for honest users.
Attackers spend their own money to produce blocks and only get a fraction back unless they burn even more money mining.
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$Saito is only profitable to play with if you are an honest node routing tx for honest users.
Attackers spend their own money to produce blocks and only get a fraction back unless they burn even more money mining.
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As stated in the whitepaper: "Attackers are thrown into a catch-22: they must not only spend the same amount of fees as the honest network to produce a competitive chain, but must also match 100 percent of mining output... to recapture their funds"
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Saito thus is an open network that runs crypto applications in browsers without plugins, private APIs and non-open infrastructure.
$Saito survives without an owner while funding the nodes that provide user-facing infrastructure for its own network and public blockchains.
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$Saito survives without an owner while funding the nodes that provide user-facing infrastructure for its own network and public blockchains.
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Let's talk about the Tokenomics briefly,
Foundation - 15%
Core Team-15%
Rewards-15%
Seed Round-10.3%
Private Sales-13.7%
Public sales-1%
Contributors Dev-15%
Strategic partners-10%
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Foundation - 15%
Core Team-15%
Rewards-15%
Seed Round-10.3%
Private Sales-13.7%
Public sales-1%
Contributors Dev-15%
Strategic partners-10%
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Contributors / Devs Allocation was to fund software and network developers working on the core protocol and significant applications for the next decade.
Strategic Partners Pool to subsidize on-chain transaction and development costs for third-party companies investing...
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Strategic Partners Pool to subsidize on-chain transaction and development costs for third-party companies investing...
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their own resources in building PKI applications on the Saito network.
"PKI" performs encryption directly through the keys that it generates.
Rewards Funds for token faucets, airdrops and other incentive programs to build community.
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"PKI" performs encryption directly through the keys that it generates.
Rewards Funds for token faucets, airdrops and other incentive programs to build community.
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There is core team compensation for early developers and network creation in the first three years of network development.
These tokens are not convertible to ERC20 or other more liquid token types for a minimum of five years.
Dumping? Read it again.
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These tokens are not convertible to ERC20 or other more liquid token types for a minimum of five years.
Dumping? Read it again.
/16
$Saito is also ERC20 convertibility for tokens purchased by seed and private round backers.
It is restricted by a vesting schedule that will release tokens gradually over the next 12 months.
They also have a native Saito token.
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It is restricted by a vesting schedule that will release tokens gradually over the next 12 months.
They also have a native Saito token.
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To summarise, Saito believes the fundamental problems affecting blockchain scaling are economic.
To solve these issues, $Saito has invented seven major innovations in blockchain technology...
-Automatic transaction rebroadcasting
-The burn fee
-The golden ticket system
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To solve these issues, $Saito has invented seven major innovations in blockchain technology...
-Automatic transaction rebroadcasting
-The burn fee
-The golden ticket system
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-Powsplit
-N-block golden tickets
-A secure multiparty voting mechanism
-The chain of cryptographic signatures that permits the blockchain to identify and reward productive nodes
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-N-block golden tickets
-A secure multiparty voting mechanism
-The chain of cryptographic signatures that permits the blockchain to identify and reward productive nodes
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I hope you enjoyed this thread.
If you like to read threads like these, please give me a follow:
@crypto8fi
And if you like to read longer-form content around investing safely, check out my Medium linked below:
medium.com/@crypto8fi
If you like to read threads like these, please give me a follow:
@crypto8fi
And if you like to read longer-form content around investing safely, check out my Medium linked below:
medium.com/@crypto8fi
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