Virtual Coin Development Topic (the first generation of counterfeit currency system fee mechanism is what) _ Block chain technology

Block chain enthusiasts
There are two things in life that will not change: death and the service charge of a bank. Today I'm going to make a clear explanation of the reason for the charge, the type and usefulness of the cost of the bit-unit system. On a higher level, in fact, there are two kinds of fees: the fixed costs defined by the agreement and the variable transaction fees determined by the trustee. In fact, a trustee can raise a fixed fee if he agrees, but not a fixed fee.




Variable transaction costs


The most common charge for each transaction is a variable transaction fee. This fee is not mandatory, and even if a trustee voluntarily deals with your transaction, the cost can theoretically be zero.


Variable costs are carefully determined by trustees who are authorized by the shareholders. The main purpose of this charge is to cover some actual costs, including promotion, confirmation and storage of transactions on the block chain. The minimum fee you pay is determined by the trustee who has the lowest fee. However, in order to get the best service, you should pay as much as possible to the fees charged by most trustees.


From December 2014 The trustee requested the lowest default fee is 0.1 counterfeit currency, which is less than 1 cents. The default fee in the wallet is 0.5 shanzhai, almost 1 cents, which can be set, but it is necessary to consider the cost in the long run.


These variable transaction costs can also be charged from bit assets, such as BITUSD, BitGold and BITCNY. If the cost comes from bit assets, the trustee will ask for a double fee, that is to say, if the normal cost is 0.1 counterfeit currency, then they will charge a value of 0.2 counterfeit currency BITUSD. The trustee used the fee to price the conversion of the bit assets and the counterfeit currency. These fees and rates are ultimately determined by the trustees. The reason for this doubling is to encourage users to hold counterfeit currency in their wallets to pay for the cost, because we have to pay higher fees for the convenience of using the bit assets directly.


Transaction transfer fee


When a transaction is broadcast on the network, all nodes can vote for the rate. In general, and variable transaction costs are the same, unless the network occurs when congestion. If too many transactions result in network congestion, then the node will automatically increase the transit costs, for most of the pragmatic users can completely ignore the cost, quiet waiting for their transactions at ordinary rates broadcast.


Trustee Registration Fee


A trustee is a special user who needs to be recognized by shareholders to generate blocks and get paid. The trustee can set their payment rate on the basis of the maximum award of 50 Shanzhai coins per block. The trustee's registration fee is two weeks ' income according to the set rate of payment, or 59,881 counterfeit currency at 100% payment rate, and the dispatch is about 1000 dollars. This fee must be paid in cottage currency.


The main purpose of this charge is to exclude those who do not have the ability to obtain sufficient shareholder support and want to try to run. This will be the first level of scrutiny, avoiding everyone trying to get votes, which is also a security mechanism that gives shareholders an opportunity to withdraw their votes within two weeks, avoiding dilution. After two weeks of proving their own time, a trustee can make ends meet. If the trustee of an application is not selected, the fee will be used as a network maintenance work.


Any time an average user wants to upgrade to a trustee, he or she must pay the fee.


Registration fees for user-issued assets


User issue assets is a very powerful function, so that everyone can create in the trading of tokens, each of the tokens will be assigned a unique trade mark, such as cottage currency, USD and so on. The number of boutique trading signs (5 letters or less) is limited, so the network will charge 500,000 counterfeit currency (a dispatch of about 7500 U.S. dollars) as a reserve, the purpose is to put the fine trade signs for those who want to profit from the business. The 6-to 8-character logo requires only 500 shanzhai coins (about 7.5 dollars at the time of Dispatch), which can be used as a personal or non-profit application for ordinary users.


When a user issues an asset, he or she must pay a variable transaction fee with a cottage currency or a bit asset.


Market costs


The internal market collects fees from the pending orders, and at any time there is overlap between the buyer and the seller. It can be thought that the block chain acts as a middleman between two groups of people (who do not know what each other offers). First, the chunk chain buys the asset at a low price from the seller and then sells it at a high price to the person who wants it, and for all the deals, the block chain is the other side, and the transaction costs are repeated to better support the development of the bit-stock network.


I will be very concise to explain to people this system: "Everyone can get what they want, so no one will not be satisfied." In this view, users do not have to pay any fees for market transactions, except for the normally variable transaction costs required for each transaction. In other words, because the network is completely transparent, users will find that the opportunity costs of not matching the requirements are perfect.


Order matching algorithm The purpose of a machine charge is to prevent individuals, especially trustees, from being able to deal with them easily. The impact of advanced trading on end users is the same: they get what they want. The difference is that at the right time and place profit is the fastest person rather than the entire network.


A side effect of this algorithm is to minimize the manipulation of all pending information into the same block. Users can still use the client to manually match pending orders without paying the market fee, but this requires them to accurately match a pending entry every 10 seconds. In fact, market costs are a tax on creating speed and convenience, allowing the market to set aside time to deal with large-scale changes.


Short charges


A user who looks at an empty cottage currency can borrow BITUSD (or other market-anchored assets) to enter a short position by paying interest. The interest rate is set by the user and will affect the priority of their short pending order transactions.


Additional margin charges


If short orders drop to less than collateral, the network will automatically use their collateral to close the position. If there is sufficient remaining collateral, 5% of the cost will be charged as a fine, and the remaining 95% will be returned to the user. The cost is to encourage users to actively maintain margin, minimize the impact and do a good job of the timing of the forecast.


The whereabouts of the costs


All fees paid in cottage currency will be aggregated into a fund to progressively pay for all trustees who run for more than two weeks. The trustees of a block are entitled to set a percentage of this fee as their rate of payment. A 100%-paid trustee will receive the full fee, while 0% of the trustee's dues will be burnt down. Burning Cottage currency is equivalent to giving back value to shareholders. So we can generalize that all the counterfeit currency fees will be used to pay the trustee or to repay the shareholders.


The cost of all the bit assets will also be aggregated into a fund as a benefit to the owner of the bit assets. Such fees are charged in order to maximize the yield of the bit assets. Everyone wants to use a free system, but nothing is free or free, and scarce resources have to be used to prevent abuse with the necessary charging model.