Game of Stakes has come online and P2P Validator is happy to be among ones to take part in the clash!
We are pleased to announce a live explorer to help you enjoy this game at its best.
For those who haven’t been following the buzz, Game of Stakes or GoS is a unique participatory research program with real-life incentives for attackers. New adversarial environment Genki-3001 is designed to maximize the effectiveness of cartel formation and vote withholding attacks, will demonstrate how collusion and deceptive actions interact with the incentive layer of a BFT Proof of Stake protocol.
Participants are to acquire rewards through censoring others, highlighting misconfigured node setups, and sending deceptive traffic to other nodes (DDOS), and vice versa the stake is decreased for being a victim to such actions.
Stay on our lookout for further updates and share your feedback on the explorer:
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<p>Hello, world! We are building P2P Validator — the GUI for painless blockchain assets staking across 9+ Proof-Of-Stake networks. We support Tezos XTZ mainnet, Polkadot, Cosmos and IRISnet testnets from the beginning, and ready to take Nucypher, Dfinity and Solana on board.</p><p>Our mission is to positively influence the development of Proof-Of-Stake technology and improve existing networks by mindful alternate proposals while offering token holders to hedge their staking rewards on the other hand.</p><p>Whether you chose to delegate your digital assets to P2P Validator or not, we welcome you to join our social channels, educational hub and use our DApps, all of which will be open-source.</p><p><strong><strong>Public website:</strong></strong> <a href="https://p2p.org/?utm_source=1_post&utm_medium=creds_link&utm_campaign=blog">p2p.org</a></p><p><strong><strong>Medium:</strong></strong> <a href="http://medium.com/p2peconomy">medium.com/p2peconomy</a></p><p><strong><strong>Twitter:</strong></strong> <a href="http://twitter.com/p2pvalidator">twitter.com/p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong> <a href="http://t.me/p2porg">t.me/p2porg</a></p><p><strong><strong>By choosing a right delegate, supporting crucial network alternating decisions and first of all — by fully accepting and acting in course with decentralized community values and code of conduct, we will definitely achieve Proof-Of-Stake social and algorithmic consensus.</strong></strong></p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/1.jpeg" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/1.jpeg 600w, https://economy.p2p.org/content/images/2020/09/1.jpeg 1000w" sizes="(min-width: 720px) 720px"></figure><h3 id="why-delegate-to-us"><strong>Why delegate to us?</strong></h3><p><strong><strong>Simplicity & Effectiveness.</strong></strong> It’s unbelievably easy to stake your assets across different networks with us. Tezos Bakery is already available for XTZ delegation and will be expanded to 9+ networks all within single GUI, as soon as their testnets and then mainnets are launched. As of this writing, we’re moving towards adding an exhaustive cross-network analytics to help you track rewards flow and analyze the value of different stakes.</p><p><strong><strong>Focus on Governance.</strong></strong> PoS implies that the network alternations are voted by its nodes, where the highest stake value determines the power of voice. As a general stakeholder, we offer a smart on-chain governance insight within each ecosystem we are presented, meaning to represent your interests and execute your will whether you don’t have enough time or desire to do so. In other words, we help networks grow in value while increasing the value of your own stake and rewards by stopping unfair and making the right decisions happen.</p><p><strong><strong>360° Security.</strong></strong> All independent third-party auditors are welcome to try and test our infrastructure security.</p><p><strong><strong>Community impact.</strong></strong> We’re keen to become the leading educational hub and informational source for all things Peer-to-Peer and blockchain thus turn our financial experts, developers and analysts to look trendy and share their findings across our blog and social media.</p><h3 id="network-portfolio"><strong>Network portfolio</strong></h3><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/2-20.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/2-20.png 600w, https://economy.p2p.org/content/images/2020/09/2-20.png 1000w" sizes="(min-width: 720px) 720px"></figure><p><strong><strong>Tezos:</strong></strong> <em><em>mainnet / staking opened [</em></em><a href="http://p2p.org/"><em><em>start earning rewards</em></em></a><em><em>]</em></em></p><p><strong><strong>Cosmos:</strong></strong> <em><em>testnet / staking opened</em></em></p><p><strong><strong>IRISnet:</strong></strong> <em><em>testnet under construction</em></em></p><p><strong><strong>Polkadot:</strong></strong> <em><em>testnet under construction</em></em></p><p><strong><strong>Dfinity:</strong></strong> <em><em>testnet under construction</em></em></p><p><strong><strong>Algorand</strong></strong> <em><em>testnet under construction</em></em></p><p><strong><strong>Solana:</strong></strong> <em><em>testnet under construction</em></em></p><h3 id="become-a-business-partner"><strong>Become a business partner</strong></h3><p>Running and maintaining an infrastructure are headaches.</p><p>P2P Validator is built to simplify staking and take all the node weightlifting to unfold new revenue sources for you. We’re open for business offers and proposals from existing investment funds, exchanges, foundations, services and other blockchain-related financial institutions and all first-string asset holders.</p><p>For example, if you’re an exchange then you probably aware that your customers most likely prefer platforms that provide staking and rewards among other options. While you may also know that running a dedicated node in each network results into tremendous headaches and unplanned costs. P2P Validator completely eliminates infrastructural, salary and token costs while makes you forget about time consuming node maintenance at the same time.</p><p><a href="mailto:[email protected]">[Drop offers here]</a></p><h3 id="risks-as-a-staking-as-a-service-provider"><strong>Risks as a Staking-as-a-Service provider</strong></h3><p>We are aware and take on all possible risks associated with the unfair performance of our duties. In accordance with the rules of networks, such actions will be voting procedures evasion, double transaction signatures and low node uptime.</p><p>In case, if you’re running your own node, all fines are your responsibility whether you have basic or venture-level infrastructure behind you. Voting also requires deep understanding of blockchain, PoS and network nuances and investments, which are not granted even with the highest stake possible. Token delegation is a solid workaround to decrease risks yet ensure your interests are presented in the exact network.</p><h3 id="core-business-values"><strong>Core business values</strong></h3><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/3-18.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/3-18.png 600w, https://economy.p2p.org/content/images/2020/09/3-18.png 800w" sizes="(min-width: 720px) 720px"></figure><p><strong><strong>Security.</strong></strong> Protection of your stake and personal data are our top priorities. Each P2P Validator community member is free to stay anonymous to others as well as hide their financial data, if feeling so, but not necessarily should. Each user is free to bring a crime to an arbitrage or raise suspicions and doubts against service itself or other members of the community. Arbitrage is done ad-hoc to ensure objectivity.</p><p><strong><strong>Transparency.</strong></strong> All our actions and decisions are clearly visible and transparent to our community. We are sharing all financial data on returns, cycles, stake amount and delegation capacity as well as the status of all networks and our project updates.</p><p><strong><strong>Groundbreaking technology.</strong></strong> P2P Validator is dedicated to combine different networks under a single interface for an investor’s the peace of mind and to save hours usually wasted on switching between wallets and staking service providers. We’re planning to further simplify staking by adding open-source DApps and other tools for community needs.</p><p><strong><strong>Benefit.</strong></strong> Staking exists to generate new coins and revenue. Although we do have static 10% fee implemented to all rewards you get from staking operations, we are 100% sure staking creates additional benefit for our users on the first place. Using our expertise, we pick only the most successful networks and execute smart governance to ensure growing value and high returns.</p><p><strong><strong>Smartness.</strong></strong> Perfection comes from experience. As the general stakeholder, we provide deliberated business decisions based on deep financial analysis and understanding. We are more than interested in avoiding overdelegation and helping networks thrive, as we are staking our own assets on our node.</p><h3 id="community-benefit-roadmap"><strong>Community Benefit Roadmap</strong></h3><ol><li>Educate, demonstrate and influence. As we define ourselves as the general opinion leader, we see our purpose in creating an international educational hub for all things Proof-of-Stake. The part of our revenue is spent on maintaining the highest possible level of educational materials: webinars, guidelines, insights and news representation. The success of each community member affects the network and thus our success also depends on it, so we make sure that each community need is fulfilled within P2P Validator ecosystem.</li><li>Support open-source DApp development. Creating robust yet efficient applications is the part of our strategy to benefit the Proof-of-Stake community. We believe in open-source development and values, so expect all the DApp source code available on Github right from the start. Modes, upgrades and enhancements are welcome. Also we’re planning on supporting independent developers and projects to further enrich the ecosystem.</li><li>Spend our revenue for the community building. We will use a significant percentage of our income to construct a strong and intelligent community of users behind P2P Validator. In long-term this will help to further promote P2P economy and Proof-of-Stake as its integral part, diluting the existing community of enthusiasts, foundations, and core developers with fresh members.</li></ol><h3 id="tl-dr-project-origins"><strong>TL;DR: Project origins</strong></h3><p>P2P Validator has been established in 2018 after a few successful projects delivered by the same team of chaincode developers and crypto enthusiasts. From testnets to mainnets our mission is to promote values of the blockchain assets and give people access to the new emerging peer-to-peer economy.</p><p><strong><strong>Contributing to</strong></strong> <a href="http://multy.io/"><strong><strong>Multy</strong></strong></a><strong><strong>:</strong></strong></p><p>Multy is a blockchain-based multi-cryptocurrency and digital assets open-source wallet available in the web, on iOS and Android. Imaguru Blockchain Hackathon winners.</p><p><strong><strong>Contributing to</strong></strong> <a href="https://crypto3.nilfoundation.org/"><strong><strong>Nil Foundation</strong></strong></a><strong><strong>:</strong></strong></p><p>This library is a modern cryptography backend designed in generic programming style. Library intention is to become an industry-standard cryptography library developing faster than OpenSSL and including modern schemes and protocols.</p><p><a href="https://p2p.org/?utm_source=1_post_link_end&utm_medium=medium&utm_campaign=blog"><strong><strong>Start staking and earning rewards</strong></strong></a></p>
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<p>On the date of publishing <code>~69%</code> of current total atom supply is locked in staking meaning that for the rest, their holdings are considered more as speculative rather than potentially revenue generating assets. Most of Proof-of-stake (PoS) networks sometimes offer attractive yield nominated in native tokens. An effective and reasonable relation between risk and reward assists in achieving the implied level of network security and create economic incentive for delegators to lock their holdings if they believe in the value proposition of the token in the long term. Staking yield provides a reliable revenue stream for validators operating the network.</p><p>If short term expectations about token price are bearish and speculators see a possibility to repurchase more tokens in future and this amount exceeds the expected return on staking (RoS) nominated in USD for a particular period of time then the reason to lock-up holdings in staking can be less attractive than just to hold and be ready to sell when emotions are high. It can be true for even long-term believers who consider such speculation as an opportunity to increase the overall network share as well.</p><h1 id="1-not-staking-missing-opportunity"><strong>1. Not staking = missing opportunity</strong></h1><p>Not staking today may be considered as a missed opportunity to earn rewards tomorrow. The higher the belief in the long-term value growth the less speculation happens in the short term and more people agree to get higher benefits in the future. <strong><strong>Atoms are not speculative assets and can be defined as units subject to inflation, generating revenue from transaction fees thus providing an incentive to actively participate in staking, securing the cosmos hub.</strong></strong> Validators of cosmos hub will earn fees by validating on other chains in cosmos ecosystem and sharing security with them. Until Inter Blockchain Communication (IBC) and shared security features are not active, transaction fees are close to zero, short term ATOM value may fluctuate.</p><p>However, from pure speculators tokens will go over to the long-term participants and their attempts to sell high and buy low may fail. Volatility expectations may become less interesting than staking or even erroneous, which will lead to a missed opportunity to jump into the leaving train. Unbounding also makes funds illiquid for three weeks and decreases the speculative attractiveness of ATOM.</p><p>Some short-term traders prefer to store their tokens on exchanges. Even if exchange offer staking opportunities it is not secure because the person has no control over the holdings. Sometimes exchanges suffer from hacking attacks. The recent accident with Binance confirms that that exchanges are not the best option to store funds.</p><p>If you believe in the ability of ATOM to gradually increase earnings in the long run, then buying low, adding on deeps and immediate staking with reinvesting rewards in order to increase overall share in the network can be a more reliable strategy, which can provide higher gains from transaction fees in future.</p><h1 id="2-inflation"><strong>2. Inflation</strong></h1><p>To get rid of confusion, annual inflation is not the same as annual RoS. Inflation is a mechanism, minting rewards that go to stakers as a percentage of total ATOM supply. As a result, it dilutes a share of the network of speculators and passive holders.</p><p>Annual ATOM provisions and annual RoS depend on initial parameters determined in genesis. lnflation percentage was set at <code>7%</code> from total supply. This number is slowly increasing and can go up a maximum <code>13%</code> and reach <code>20%</code> to incentivize staking until <code>67%</code> of ATOM supply will be bonded.</p><p>If staking ratio is <code><67%</code> then annual inflation change in the moment can be defined with a following calculation: <code>7% + 13% * (67% - staking ratio)</code>. If staking ratio exceeds <code>67%</code> then inflation will gradually decrease.</p><p>Validator ATOM provisions occur every first block of a new hour. These provisions are based on the estimated number of blocks in a year. When cosmos network first launched mainnet this number was calculated with the assumption, that average block time will be <code>5 sec</code>.</p><p>By dividing the quantity of seconds in a year by average block time, we get the estimated number of blocks in a year. Calculated yearly ATOM provisions are evenly distributed to the blocks. After launch, it became clear that actual average block time is higher and stakers will get fewer amount of ATOMs than it planned. That is why the first proposal was about adjusting the number of blocks in a year with <code>6,75 sec</code> which is much closer to the actual block time.</p><p>After we have figured out ATOM provisions per block we can find overall annual RoS. <strong><strong>These rewards go only to participants who are involved in staking.</strong></strong> If all ATOMs are locked in staking then everyone gets an equivalent amount of tokens and there will be no additional benefit relative to each other. In this case, annual inflation will be the same as annual RoS and no one will be diluted or rewarded.</p><p>Otherwise, we need to include staking ratio in our calculation. <code>Annual RoS = annual inflation / staking ratio</code>, where <code>staking ratio = staked ATOMs / total ATOMs</code>. In fact, additional rewards that go to delegators from inflation are ATOMs intended for those who do not stake. In that way, <strong><strong>net earnings are the difference between annual RoS and annual inflation rate.</strong></strong> Passive holders are penalized by inflation and their share of the network is diluted and redistributed amongst delegators.</p><h3 id="example"><strong>Example</strong></h3><p>Let's make it clear and simple to sum up the information written above. Imagine that we have total ATOM supply equal of <code>100</code>, annual inflation is <code>7%</code> (assume it is not changing), staking ratio is <code>20%</code>. Four participants have <code>20</code> <code>20</code> <code>20</code> <code>40</code>. Annual ATOM provisions from inflation equal <code>7</code> and total supply at the end of the first year will be <code>107</code> ATOMs.</p><p>Only one participant with holdings of <code>20</code>ATOMs bonded. For these conditions, we observe the following parameters.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/1-12.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/1-12.png 600w, https://economy.p2p.org/content/images/2020/09/1-12.png 698w"></figure><p>The first participant <code>P1</code> increased his network share by <code>5%</code> but also he decreased the distance from <code>P4</code> by <code>8%</code>. If we change staking ratio from <code>20%</code> to <code>60%</code> we will see the following results.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/2-15.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/2-15.png 600w, https://economy.p2p.org/content/images/2020/09/2-15.png 698w"></figure><p>You can notice that gains in network share of staking participants are equal to the loss of passive holders.</p><h1 id="voting-power-and-network-decentralization"><strong>Voting power and network decentralization</strong></h1><p>Cosmos network is a community driven project where all important solutions are accepting or declining via on-chain governance process. These decisions can have an enormous impact on token holders and other players. Participation is mandatory for validators but not for token holders. By staking, delegators transfer the voting rights to a validator. The higher the voting power the higher the influence on the results of the governance process. If a delegator does not agree with the decision of a validator he delegated to, then he is still able to cast his own vote subtracting voting power in this particular proposal from the validator.</p><p>If a delegator has no intention to participate in governance then his stake will increase the voting influence of validators he bonded. If such power is distributed unfairly and a small number of validators control too much, it can lead to centralization of the voting process. Situations like <a href="https://www.evanvanness.com/post/184616403861/aragon-vote-shows-the-perils-of-onchain-governance">Aragon experienced</a> undermine believef in the healthy decentralization and fairness of on-chain governance.</p><p>Currently there are <code>100 validators</code> in the cosmos hub participating in consensus and the top 6 of them control <code>~36%</code> meaning they can possibly collude and cast a veto, declining any healthy proposal. To avoid that cosmos hub delegators are able to transfer their voting rights in order to support the sustainability of the network increasing voting power distribution amongst validators.</p><p>Delegating to various validators is much better for the network than not delegating. In addition, it helps to decrease <a href="https://economy.p2p.org/slashing-overview-in-cosmos-network">slashing risk</a> for the stakers. The cosmos network is still in the early stages and new active participants may come as the project evolves so power distribution can change drastically in the future.</p><h1 id="4-compounding"><strong>4. Compounding</strong></h1><p>Compound interest may serve as an effective tool for increasing the share of the network in the long-term. Walter Schloss, a famous notable disciple of the Benjamin Graham school of investing said:</p><blockquote><em><em>Remember the power of compounding. You don’t need to stretch for returns to grow your capital over the course of your life. Even small gains matter. By re-delegating your rewards you increase the overall return from year to year. The longer the period, the bigger the difference.</em></em></blockquote><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/3-14.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/3-14.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/3-14.png 1000w, https://economy.p2p.org/content/images/2020/09/3-14.png 1180w" sizes="(min-width: 720px) 720px"></figure><p>RoS depends also on the frequency of re-delegating. The most common re-investment frequencies are <code>year</code>, <code>quarter</code>, <code>month</code> and <code>day</code>. We know, that in theory, <a href="https://www.investopedia.com/terms/c/continuouscompounding.asp">continuous compounding</a> can offer the highest return and the higher the frequency the higher the percentage in the end.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/4-9.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/4-9.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/4-9.png 1000w, https://economy.p2p.org/content/images/2020/09/4-9.png 1180w" sizes="(min-width: 720px) 720px"></figure><p>However, in some cases in crypto networks it could be incorrect. <strong><strong>To re-delegate ATOM rewards you need first to withdraw them manually.</strong></strong> To conduct this operation you need to pay a transaction fee. After withdrawal another fee occurs when you stake your rewards. So if you are not a big fish and don't have a big stake then withdrawing too frequently can lead to a situation where small fractions of pending rewards may be less than the transaction fees or the difference may be too small and not make sense.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/5-9.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/5-9.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/5-9.png 1000w, https://economy.p2p.org/content/images/2020/09/5-9.png 1180w" sizes="(min-width: 720px) 720px"></figure><p>Monthly compounding looks like the most optimal frequency to re-delegate ATOM rewards. However if the stake is higher than <code>3000 atoms</code> re-investing on a daily or weekly basis becomes more reasonable with stated RoS of <code>~12,2%</code>.</p><blockquote><em><em>"Compounding matters and does so far more than people expect. The human brain thinks in a linear way which means that if we were asked to estimate what <code>10.22%</code> (<em><em>close to current annual yield of cosmos network</em></em>) compounded over <code>100 years</code> would be then our answer is likely to be closer to <code>1,022%</code> than <code>1,679,600%</code>, something economists call exponential growth bias. This means that compounding is often underestimated and should be at the heart of long-term investing" <em><em>Marathon Asset Management</em></em></em></em></blockquote><h1 id="increase-of-stability-and-network-security"><strong>Increase of stability and network security</strong></h1><p>As pointed in the <a href="https://economy.p2p.org/introduction-to-cosmos-economy">previous article</a>, cosmos ecosystem utilizes tendermint consensus. It achieves absolute finality and any block that receives <code>>2/3</code> pre-votes and pre-commits are considered as valid. If <code>>1/3</code> malicious validators collude they can cause a fork. Off-chain coordination will allow honest validators to make a reorganization proposal as it would not be possible to perform on-chain as the malicious group will be able to veto every proposal.</p><p>The resiliency and overall network protection depend on the staked tokens. In theory, bad actors should accumulate enough voting power and the cost of such an attack is higher when more ATOMs are bonded. Currently to accumulate <code>>1/3</code> of voting power and execute a successful censorship attack, bad actors need <code>~56 000 000 atoms</code>. That is equivalent to <code>~300 000 000 USD</code>.</p><h3 id="to-sum-up-everything-written-above-we-can-conclude-that-"><strong>To sum up everything written above we can conclude that:</strong></h3><ul><li>Staking saves you from inflationary dilution of the network share</li><li>Staking early increases your ability to earn higher rewards in future</li><li>Smart staking helps the network to achieve higher decentralization of voting power</li><li>Compound interest on staking rewards work for you and increase your network share</li><li>By delegating, you increase the network security and support reliable project evolution in the long-term.</li></ul><p><em><em>Special thanks to <a href="https://twitter.com/Asmodat">@asmodat</a> for bringing clarity to the inflation part of this article</em></em></p><hr><p><strong><strong>P2P Validator</strong></strong> offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.</p><hr><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/"> https://p2p.org</a></p><p><strong><strong>Stake ATOMs with us:</strong></strong><a href="https://p2p.org/cosmos"> https://p2p.org/cosmos</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong><a href="https://t.me/p2pvalidator"> https://t.me/p2pvalidator</a></p>
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