✍️
Qwertycoin Whitepaper
  • Cover Page
  • Credits
  • Index
  • Introduction
  • Vision
    • Vision
    • Blockchain Development Roadmap
    • Exchange Listing and Pricing Strategies
  • Consensus
    • [Outdated] CryptoNote Proof of Work
      • CryptoNote block reward scheme calculation
        • An example of CryptoNote block reward scheme manipulation
    • Egalitarian Proof of Work (EPoW)
      • Introduction of EPoW block reward algorithm based on Consistency
        • An example of how QWC prevented CryptoNote block reward manipulation
      • Difficulty Algorithm - CIMA (Confidence Interval Moving Average)
        • Testnet Result
      • Difficulty Algorithm - CLIF (Critical Level Impediment Failsafe)
        • Testnet Result
      • Do you want to make EPoW more egalitarian by switching mining algorithm?
    • Transition from PoW to PoS
    • Egalitarian Proof of Stake (EPoS) - Hybrid PoS/dPoS
      • Sharding
    • Egalitarian Proof of Service (EPoSe) - Hybrid EPoW/EPoS
  • Scalability
    • Genesis Reference Block (GRB)
    • Consolidation
    • Pruning
  • Blockchain Governance
    • FATF Compliance
    • 10% Governance Fee
    • Community Voting
  • DeFi Tranasactions
    • Time Locked Transaction (TLT)
    • Long Term Staking (LTS)
    • On-Chain Trade (OCT)
  • Smart Contracts
    • Multi-Signature
    • NFT(Non Fungible Token)
  • Features
    • LMDB (Lightening Memory Mapped Database)
  • Future Directions
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  1. Consensus
  2. [Outdated] CryptoNote Proof of Work
  3. CryptoNote block reward scheme calculation

An example of CryptoNote block reward scheme manipulation

Last Updated 2020-07-23

PreviousCryptoNote block reward scheme calculationNextEgalitarian Proof of Work (EPoW)

Last updated 4 years ago

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Let us give you an example of how miners and mining pools have taken advantage of CryptoNote original block reward schedule.

In [Table 1], the column 'Base Rewards' column is the design block rewards for miners for each block.

[Table 1. An example of mining reward based on original Cryptonight block reward schedule between block 500,000 and 500,019]

The total time miners put into mining these 19 blocks are 2,161 seconds whereas the total time for the mining 20 blocks (20 * difficulty target) is set to be 2,400 seconds. This shows that the blocks are issued at the inconsistent interval and miners are basically taking advantage of their hashing power to get the rewards in a shorter time span.

In fact, [Table 1] shows that the miners were receiving approximately 10% additional profits compared to intended blockchain design. This additional profits theoretically can range from 0.8% to 11,900.0%.

To prevent this abuse, the concept of time will be introduced through a variable called ‘consistency’. The new EPoW block reward consensus will be adjusted based on ‘consistency’ (actual mining time divided by difficulty target time).