What is the distribution model of ARK coins?

In the ARK Proof-of-Stake Voting (PoSV) model, holders participate in the election of 51 delegates who validate transactions, secure the network, and receive block rewards and transaction fees as incentives for active governance.

Dec 26, 2024 at 03:19 am

Key Points

• ARK utilizes a unique distribution model known as Proof-of-Stake Voting (PoSV) to ensure fair coin distribution and community governance.
• Holders of ARK coins participate in the voting process to elect delegates responsible for validating transactions and securing the network.
• The top 51 delegates receive transaction fees and block rewards, providing incentives for active participation and network governance.

Proof-of-Stake Voting (PoSV) Model

• Consensus Mechanism: PoSV replaces traditional Proof-of-Work (PoW) mining with a voting-based consensus mechanism.
• Holder Participation: ARK holders vote for delegates, who are responsible for securing the network and validating transactions.
• Consensus Building: Delegates achieve consensus on the validity of new transactions, which are then added to the blockchain.

Delegate Selection and Voting Process

• Voting Weight: Each ARK coin held gives its owner a certain voting weight.
• Delegate Nomination: Coin holders can nominate themselves or other ARK holders as delegates.
• Election Process: Holders then vote for their preferred delegates through a secure and transparent voting system.
• Top 51 Delegates: The top 51 delegates with the highest vote counts are elected to represent the network for a defined period.

Delegate Responsibilities and Rewards

• Transaction Validation: Elected delegates are responsible for validating transactions and adding them to the blockchain.
• Network Security: Delegates contribute to the overall security of the network by maintaining the consensus mechanism.
• Block Rewards: Delegates receive block rewards for validating transactions and maintaining the network.
• Transaction Fees: Delegates also receive a portion of the transaction fees generated by network activity.

Benefits of the ARK Distribution Model

• Fair Distribution: PoSV ensures a fair distribution of coins to holders based on their participation in the voting process.
• Community Governance: Holders have direct influence over network governance by electing delegates who align with their interests.
• Network Security: Delegates are incentivized to maintain network security through block rewards and transaction fees.
• Scalability: The voting-based consensus mechanism of PoSV allows for scalability as the network grows.

FAQs

Q: How often are delegates elected?
A: Delegates are elected every 60 days.

Q: What are the requirements to become a delegate?
A: Potential delegates must hold a minimum of 50,000 ARK and maintain a reliable internet connection.

Q: Can I participate in the voting process without holding any ARK coins?
A: No, voting rights are only granted to holders of ARK coins.

Q: How much do delegates earn?
A: Delegates receive a portion of the transaction fees and block rewards generated on the network.

Q: Is the voting process secure?
A: The voting process is secured using cryptography and a transparent voting system.