PAI Coin Pool and Hybrid PoW/PoS

PAI Coin Pool and Hybrid PoW/PoS

Overview and Goal

Some individual goals of the Hybrid PoW/PoS Consensus Mechanism and the PAI Coin Pool platform are to (a) decentralize the block validation of PAI Coin and (b) lower the barrier to entry for mining and staking, especially for non-technical users. Further, while Hybrid PoW/PoS is still in progress, PAI Coin Pool was initially launched as an “off-chain” platform, in an effort to, among other things, introduce users to the concepts of mining and staking.

When Hybrid PoW/PoS is launched via a hard fork of the PAI Blockchain, PAI Coin Pool should be the portal by which users can most easily mine and stake. The mining whitelist will have been removed, and any user will have the prerogative and ability (via cloning and building PAI Coin Core from the Project PAI GitHub) to “solo mine” or “solo stake.” Nonetheless, analogous to Poolin, AntPool, Slush Pool and so forth, it should be simpler, more accessible, and potentially more profitable, to mine and stake via PAI Coin Pool.

This document is intended to specify the approach to achieving the merger of Hybrid PoW/PoS and PAI Coin Pool.

Mining & Staking on PAI Coin Pool

Mining by Proxy

  • In this mechanism, PAI Coin Pool will act as a single large miner.
  • PAI Coin Pool will operate one real mining node. PAI Coin Pool will aggregate all shares submitted by individual PAI Miner apps. Candidate blocks deemed valid by the pool will be broadcast on the network for staking nodes to evaluate and append to the blockchain.
  • Individual PAI Coin Pool user payouts will be handled the same way they are currently, potentially after removing or adjusting the Block Reward Subsidy Factor (i.e., when PAI Coin Pool as a whole wins a mining block reward, the reward will be paid out to individual miners proportional to the number of Lucky Hashes they generated relative to other miners in the time since the previous block was mined).
  • The principal differences between PCP mining as is and this proposed modification are:
    • Blocks submitted by individual users will actually be appended to the blockchain.
    • Payouts will not occur every time a block is mined, they will occur only when a block mined by a PAI Coin Pool user themselves is appended to the blockchain.
    • The payout to miners will not be a fraction of the entire block reward, but rather (a fraction of, if PCP Block Reward Subsidy Factor != 1.0) the fraction of the block reward that is allotted to miners as defined by the protocol (e.g., 70% to miners).

Off-Chain Staking

  • PAI Coin Pool staked user deposits will be staked via the PAI Coin Pool node. Whether or not other stakers independently exist or participate, the PCP node should be naturally and routinely chosen by the protocol to vote on a given block due to the relative amount of PAI Coin it will have staked.
  • PAI Coin Pool Staking would function as it currently does. Users would stake any amount for any time period they choose between 2 and 52 weeks.
  • Users’ staking earnings would increase every time a block is validated with a vote from any or all of the PAI Foundation’s stake vouchers.
    • The increase in their earnings would be calculated as it currently is, as a function of amount staked, time staked for, and relative to others’ staked amounts.
  • Like with mining, the payout to stakers would no longer be a fraction of the entire block reward, but rather (a fraction of, if PCP Block Reward Subsidy Factor != 1.0) the fraction of the block reward that is allotted to stakers as defined by the protocol (e.g., 6% for each staker who voted on the block).