How is Oraichain (ORAI) coin generated?

Through a combination of Proof-of-Work mining and staking, Oraichain generates its native ORAI coin, which fuels AI services, network governance, and reward distribution within its ecosystem.

Dec 23, 2024 at 12:03 pm

Key Points:

• Oraichain is a Layer-1 blockchain protocol focused on providing AI services to traditional businesses.
• ORAI coin is the native token of Oraichain and has several use cases within the ecosystem.
• ORAI coins are generated through a process of mining and staking.
• Users can earn ORAI rewards for securing the network and participating in AI services.
• Oraichain has a Proof-of-Work (PoW) mining algorithm, which involves solving complex puzzles to generate new blocks and earn rewards.
• Staking ORAI coins allows users to validate transactions and participate in the governance of the Oraichain network.

How is Oraichain (ORAI) Coin Generated?

Oraichain uses a combination of mining and staking to generate ORAI coins. Here's how the process works:

1. Mining:

• Oraichain employs a Proof-of-Work (PoW) mining algorithm called Lyra2REv3.
• Miners use powerful computational resources to solve complex mathematical puzzles and compete to add new blocks to the blockchain.
• The first miner to solve the puzzle receives a block reward in the form of ORAI coins.
• Mining rewards are proportional to the amount of hash power contributed.

2. Staking:

• Users can also earn ORAI rewards by staking their coins.
• Staking involves locking ORAI coins in a designated wallet to support the operation of the network.
• Staked coins are used for transaction validation and to participate in governance decisions.
• Stakers receive rewards proportional to the amount of ORAI they stake and the length of time they stake it.

3. Reward Distribution:

• The block reward for miners and staking rewards for stakers are distributed according to a pre-determined schedule.
• The block reward halves approximately every four years, as with other PoW-based cryptocurrencies.
• The total supply of ORAI coins is limited, ensuring scarcity and potential for value appreciation.

4. Use Cases of ORAI Coin:

• Utility Token: ORAI is the primary means of payment for AI services and data on the Oraichain network.
• Governance: ORAI holders can participate in network governance by voting on proposals and shaping the future of the Oraichain platform.
• Staking: ORAI coins are used for staking to secure the network and earn rewards.
• Value Storage: Like other cryptocurrencies, ORAI can be held as a store of value and can appreciate in value over time.

FAQs:

Q: What is the purpose of Oraichain's ORAI coin?
A: ORAI is a utility token used to access AI services, support network governance, stake for rewards, and serve as a store of value.

Q: How do I mine ORAI coins?
A: You can mine ORAI using specialized mining hardware and a mining pool that supports the Lyra2REv3 algorithm.

Q: How do I stake ORAI coins?
A: You can stake ORAI coins by using a non-custodial wallet and participating in a staking pool or by delegating your tokens to a reliable staking provider.

Q: What is the inflation rate of the ORAI coin?
A: The inflation rate is controlled by the halving mechanism, which reduces the block reward by 50% approximately every four years.

Q: How can I earn ORAI coins?
A: You can earn ORAI coins through mining, staking, providing liquidity, or participating in community initiatives.