DIVI – Tokenomics

The Economics of the Coin
The Divi Project has developed an economic structure designed to keep prices stable while pushing for adoption. Keeping the price at a stable level will encourage people to purchase and use DIVI right now. When you compare it with a currency like #Bitcoin, you can see that the high price is a barrier to entry for many.

Token Tank Live 2019 Divi Project

Creating new coins.
The process by which more coins are added to the blockchain is called minting. 1250 DIVI are created in every block, which occurs every minute. A proportion of this goes to one staker (456), one masternode holder (540), the lottery (50) , the treasury (192) and to fund development (12) .

Reward Structure
Rewards are paid out to Divi’s stakers and masternode holders. Every new block that is minted, 456 DIVI is awarded to a staking wallet, and 540 DIVI to a masternode wallet.

A small portion of each block that is minted is set aside for the treasury (to aid further development of the blockchain), and charity.

Divi’s equivalent to Bitcoin’s Proof of Work is Proof of Stake, and instead of Bitcoin’s mining, Divi has staking. Rather than needing vast amounts of computer power to secure the network, “Coin Age” enables Divi’s security protocols.

We find the Coin Age by multiplying the number of coins by the “age” of these coins, i.e. the amount of time between now and the last transaction using said coins.

Generally speaking, PoS is solving the same hashing problem as PoW, but hashes are built from Coin Age and existing UTXOs (Unspent Transaction Outputs) not from running a mining rig.

Stocks
#Staking is the process your wallet uses to validate transactions and award you with coins. When your wallet is staking, it is checking transactions to make sure everyone who sends coins was,in fact, the owner of those coins and had the right to transfer them. If most of the wallets online agree that a transaction is valid, then it gets accepted by the network.

As a #reward for keeping the network secure, every minute one online wallet is chosen to receive a stake reward based on the coins they own.

Each online wallet tries to create a stake, by scanning through its UTXOs and trying to match PoS difficulty with their weight. We calculate weight by multiplying Coin Age * amount of UTXO. The more coins you have and the older they are, the higher chance you have to create a stake.

It’s required to be online during staking because otherwise, you are not able to sync to peers.

The Divi Lottery
Unique to #crypto, Divi has implemented a weekly lottery, whereby winners are rewarded a larger one time stake of #DIVI.

Lottery in Divi is a process of selecting 11 winners in a pseudo-random way at the end of every lottery cycle. Lottery winners are determined in every block, this is important to understand, this is not like the real-world lottery where random numbers are generated.

Lottery reward is the number of coins that are generated in every block and is added to the lottery pool.

Lottery cycle is how many blocks need to be minted to trigger new lottery.

loto
Let’s pickup random values to show this on example:

Let’s pretend that we are on block 200, and it’s the end of last lottery cycle and the start of new lottery cycle. The algorithm behaves like this:

In every block, we calculate the score using the hash of coin stake and the hash of the last lottery.
After calculating the score, we save it in CBlockIndex together with 11 other winners.
At the end of the lottery cycle, block 400 in this example, minter needs to pay to the winners of the lottery.
Any peer looking on the blockchain can do the same math and tell if lottery winner is valid or no, this is important, peers can reach consensus in a decentralized way looking on their local blockchains.

Inflation
The topic of inflation is subject to plenty of debate in cryptocurrency circles. For example, Bitcoin is a deflationary currency, and has a fixed supply (also known as a hard cap). Divi has a different economic structure, as it has no hard cap, and embraces inflation as a way of drawing people into the ecosystem, and maintaining its value as a currency that can be transacted easily.

Continual Expansion of user-base:
Fee burning and dust cleanup:
Masternode Tiers:

Divi Project 2019 Recap, Our Year!

I hope you had enjoyed my second post regarding the DIVI Project.

I’m planning to create a few more posts about DIVI, there is more to share …wait for the next one.

DIVI is one of the best Projects for 2020.

We have a problem, they have the solution.

If you want to be part of DIVI family you can find more info at https://diviproject.org/

Also, if you didn’t signed up for the new app please click in this link =>>> https://wallet.diviproject.org/

If you want to buy some #DIVI, please click in the links below:

BITHUMB GLOBAL

MIDAS (On Midas you can be part of a #Masternode without having the full masternode)

BITRUE

Please have a look at my Library I have some good books that can help you a lot if you are a beginner in trading and Finance.

Cheers

Smart Money