Introduction to NetFlowCoin’s reward mechanism

To bridge the on-chain and off-chain worlds more effectively, NetFlowCoin has a unique consensus mechanism and economic model that allows all participants to be consistently rewarded for their efforts, meanwhile, rewards nodes for maintaining the network and serving users relative to their static and dynamic work.

Currently, the vast majority of blockchains use an approach that rewards tokens to block producers, stimulating continuous block mining and ledger consistency protection. The main reason for this approach is that chains only serve a separate ‘on-chain world’ and do not consider how to better interface with and adapt to the real world. This is matched by the fact that chains other than filecoin have a consensus that only relates to the blocks generation.

NetFlowCoin’s token are very different from the current blockchains (and arguably the 1.0 and 2.0 versions of blockchains). In addition to being rewarded for the production of blocks on the chain, NetFlowCoin also has a value conversion token in line with real-world services on the chain, i.e. a PoF that allows real services to be converted into digital assets on the chain in the form of flow: the token.

The NetFlowCoin token system is therefore unique, both in terms of the determination of the token and the actual work it corresponds to. However, it is also the uniqueness of the token system that increases the availability of the NetFlowCoin network to nodes and users, ensures the operability of the on-chain and off-chain connectivity, and maintains the long-term health of the network as a whole.

1 NetFlowCoin’s unique reward mechanism

The NetFlowCoin consensus is divided into two types of consensus: PoS and PoF, based on which there are three production methods and token mechanisms: blocks generation, flow and bandwidth. Each reward mechanism has its own uniqueness and corresponds to different functions and needs, and the way it is calculated differs.

1.1 Block reward

Block reward is to encourage nodes to work hard to maintain the stability and continuous operation of the blockchain system.

NetFlowCoin’s block award is based on time decay, and the total amount will be halved in 6 years. The number of block reward is constantly decreasing year by year, but the number of blocks each year is constant.

The reward quantity of each block is calculated as follows:

Through the formula, the change of the number of block rewards can be drawn, and the block reward is fixed per year, but it is continuously reduced as time.

Block reward attenuation curve

1.2 Flow reward

Flow rewards are to motivate the SDN / SDVN node to provide users with services and maintain the entire ecological diversity.

NetFlowCoin flow rewards are based on total flow attenuation, and the NFC outputted by 1 EB flow will be reduced, and the converted flow into NFC needs to increase as EB increases.

The first step, when the nth EB is calculated, the conversion of flow to NFC ratio:


 increment curve

For flow rewards, the most important factor is that the conversion of flow to NFC rate, that is,

,which determines that the same flow rate can be converted to the NFC that can be converted under different EB total flow. And the rate is increasing with the increasing total flow, which means that the NFC output from the same flow rate is constantly decreasing.

In the second step, when the nth EB is calculated, NFC exchanged by the flow (ie. flow reward):

1.3 Bandwidth reward

Bandwidth Reward is to provide high availability and high-performance nodes for the SDN / SDVN network.

NetFlowCoin’s bandwidth reward is based on time attenuation, and the total amount of total is reduced by 6 years. The amount of bandwidth incentives per year is constantly decreased year by year, but the number of outbound blocks is constant.

The release of bandwidth rewards is once a day, and the reward is allocated in all nodes that meet the bandwidth requirements.

The first step is to calculate the number of bandwidth rewards per day:


is the 


is the 

Block reward attenuation curv

Bandwidth rewards are also fixed per year, but over time is constantly decreasing.

The second step is to calculate the total bandwidth reward available for allocation in each interval

In the third step is to calculate the qualified node valid bandwidth

The fourth step is the bandwidth reward through calculating the node

For nodes that expect to get bandwidth rewards, it is not only necessary to ensure that the static bandwidth of its access SDN / SDVN network meets the requirements, but also needs to ensure the stability and high availability of 7 * 24 hours of service capabilities.

1.4 Reward release mechanism

Production nodes (including block nodes and flow nodes) obtained by the production node (including block out reward, bandwidth reward and flow reward) after completing the corresponding work need to implement the pledge rule of locking the position for 30 days and then releasing it for 180 days.

2 Conclusion

It not only realizes the concept of “everyone participates, everyone benefits”, but also provides a diverse choice for node access ecology. NetFlowCoin rewards decrease with time (the accumulation of flow is also dependent on the passage of time). On the one hand, this attracts more participants in the early stages of the ecology, which we know is always the most difficult; on the other hand, as the ecology and network potential grows, the number of token per unit of work decreases. This allows the value of the network to increase while reducing the risk of the pass being circulated too quickly and maintaining the value of the token.

NetFlowCoin can realize the following goals with the global community with the reward of block, flow and bandwidth.

Mature and powerful SDN / SDVN network

Higher performance and expansion consensus evidence

More abundant application ecology

Finally reach the concept of “everyone participates, everyone benefits”.