On the consensus of the Silicoin-based civilization, the Staking begins.
At this time, Silicoin will soon enter the next stage, there is a significant thing you should pay attention to is that Staking will be activated once Silicoin mainnet launches.
So how does Staking works on the Silicoin Network?
Silicoin 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. In Silicoin consensus mechanism, the Difficulty could be lower by staking SIT. As we all know, the lower the difficulty coefficient, the greater the probability of being selected to produce the block.
In other words, the miners who stake SIT are easier to win the blocks. Thus, what is the final formula? The latest staking formula is as below:
Staking Factor mark as SF; Difficulty is D; The amount of Staking is S; Miner's plots size(TiB) is N, 1TiB equal to 1; and special constants are denoted as A, usually A=1.
SF = 0.5 + 1 / (S / N + A)
D' = D * (0.5 + 1 / (S / N + A))
That is to say, Individual Difficulty(D') = Difficulty(D) * Staking Factor(SF).
How to understand this formula?
First of all, the Individual Difficulty of every miner is equal to the Difficulty of the entire network multiplied by a Staking Factor. 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 SIT; The individual Difficulty is equal to the Difficulty of the entire network if the miner stake the amount of SIT same with his plots size(TiB); The miner can significantly increase the probability to win the block if he stake the amount of SIT more than his plots size(TiB);
Let's make an example.
When A=1, the current Difficulty of the entire network is 57,000. If a miner has 100T and he chooses to mine SIT without staking, his Staking Factor = 0.5+ 1 / (0 / 100 + 1)=1.5, so the chance to win blocks has drastically reduced; If he stakes 100 SIT, his Staking Factor= 0.5+ 1 / (100/ 100 + 1)=1, so his individual Difficulty is the same with the Difficulty of the entire network. If he stakes 400 SIT, his Staking Factor= 0.5+ 1 / (400/ 100 + 1)=0.7, which means that his individual Difficulty will drop a lot, and he gets more chances to win the new blocks.
In the same way, if this miner has 1000TiB and wants to obtain the same mining difficulty as normal, he needs to stake 1000 SIT to achieve this, which is equivalent to every miner with a strong SIT token demand, especially large miners.
Therefore, the staking function is going to stimulate the demand for SIT tokens because the Difficulty of mining will significantly affect the revenue in the future. Therefore, if the miners want to obtain higher returns, they need to buy or keep more SIT for staking so that their mining income will be higher.
What's more, the more plots miners have, the greater the probability that they will be selected to produce blocks in the past. But everything has changed in Silicoin. If a big miner mines Silicoin without staking SIT, his chance to win blocks may be lower than the smaller miners who stake SIT more than the size of its plot.
From the above summary, we can forecast the value of SIT will rise in the long term, and the price will increase steadily as well. In this economic logic, Silicoin avoids the monopoly of giants and helps small miners increase their profits.
The staking system of Silicoin makes SIT tokens integrate into its table fully, long-term and safe ecosystem and form a complete economic circle. This is definitely far more attractive to miners than similar projects. It is enough to make Silicoin outstanding from many mining coins and become one of the best projects with the best community and ecosystem.