Staking Calculation Formula and Detailed Analysis

Author：admin

  glcoin combines the features and strengths of both Proof of Space & Time (PoST) and Proof of Staking (PoS). In the process of producing blocks, Proof of Space is still the foremost consideration; the more plots miners have, the greater the probability that they will be selected to produce blocks. And as more miners join, space on the network will increase, and so the difficulty of the "hashing calculation" will need to be adjusted accordingly. Inthe consensus mechanism of glcoin, the system will first provide a base difficulty that is consistent across the entire network, and then the nodes will adjust corresponding individual difficulty according to the number of coins staked by each miner. The lower the difficulty coefficient, the greater the probability of being selected to produce the block.
      ● D is Difficulty of the entire network;
      ● D' is individual difficulty;
      ● SF is Staking Factor;
      ● S is the amount of Staking;
      ● N is Miner's plots size(TiB), which 1TiB equal to 1; and special constants are denoted as A, usually A=1. Then the staking formula is as follows:
      ● A is a constant with a default value of 1 and a range of (1, 2); it is used to fine-tune the extent to which staking influences mining difficulty.
      When A = 1, the staking factor (SF) falls within the range of (0.5, 1.5), which serves as the standard parameter configuration for the mainnet.
      D' = D × SF
      SF = 0.5 + 1 / (S / N + A)
      D' = D * (0.5 + 1 / (S / N + A))
   The Individual Difficulty of every miner is equal to the Difficulty of the entire network multiplied by a Staking Factor.
That is to say, Individual Difficulty(D') = Difficulty(D) * Staking Factor(SF).
   The function of the A is to fine-tune the staking effect, and it is approximately in the range of [1, 2]. When A=1, the coefficient will fall in the interval [0.5, 1.5]. That is, the miner’s individual difficulty is 50% higher than the difficulty of the entire network if he does not stake any gl; The individual difficulty is equal to the difficulty of the entire network if the miner stake the amount of gl same with his plots size(TiB); The miner can significantly increase the probability to win the block if he stake the amount of gl more than his plots size(TiB)

Example: Taking a storage capacity of 100 TiB (i.e., N=100) and assuming a network-wide base difficulty of D=1000, the calculated results for various staking amounts are as follows:

Staked Amount

S/N ratio

calculate

SF result

Personal Difficulty D'

revenue change

0gl

0.5+1/(0+1)=1.5

1.5

1500

Difficulty is 50% higher than the network average, while returns are only 67% of the standard level.

10gl

0.1

0.5 + 1/(0.1 + 1)≈1.409

1.41

1409

Difficulty is 41% higher than the network-wide average, while returns are only 71% of the standard level.

100gl

1.0

0.5 + 1/(1 + 1) = 1.0

1.0

1000

Difficulty matches the network-wide benchmark, yielding standard mining returns.

400gl

4.0

0.5+1/(4+1)=0.7

0.7

700

Difficulty reduced by 30%, with the probability of producing a block increasing by approximately 43% over the standard level.

1000gl

10.0

0.5+1/(10+1)≈0.591

0.59

591

The difficulty is close to the theoretical lower bound, and the probability of producing a block is approximately 69% higher than the standard level.

9900gl

99.0

0.5+1/(99+1)=0.51

0.51

510

Further increasing the staked amount yields only a negligible gain in returns.

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