Topic: LOKI - Service Node requirements released (Read 238 times)

NOte: The price of LOKI below are just assumptions and not finance advice. Invest at your own risk.

Loki has finally released their service nodes requirement. Based on their current Economic scheme the requirement is 10000 LOKI to set up a service node with 45% service node reward, 50% mining reward and 5% governance. The plan was to reduce the number of LOKI required to set up a service node and time went along and by the 10th year you would require only 1309 LOKI. the block reward would also reduce from 122.74 from year 0 to 10.46 in year 10. From the studies conducted if LOKI was priced at $2 and with operation expenses at $600 per year( VPS, ETC) and effective inflation at 1.71% the ROI/ANNUM would be -21.16% which would cause approximately $554 per annum to run a service node. For this reason the initial proposed scheme was scrapped. 

Due to this LOKI has released a new proposed model. Now the staking requirement is 45000 LOKI with requirement reducing non linearly to 10000 LOKI by year 4 and then increasing linearly to 15000 by year 14 after which it will remain fixed. The block rewards shall be 50% to service nodes, 45% to miners and 5% for governance.

To initial these changes a hard fork will take place at block height 64324, approximately on July 30th 2018. The hard fork will only change the emission curve parameter. After block height 64324, the LOKI block reward will go from being calculated in terms of the circulating supply with emission speed factor of 20, to be derived from the block height. Also by defining the base block reward based on height will mean that the typical block size penalty will simply under-emit if miners attempt to create abnormally large blocks. However this not negatively impact service nodes.

This is the new proposed service node model in a NUTSHELL. If you would like to more reading their service node proposal document can be found at loki.network/proposal