Elastos

ELA: Bitcoin Merged-Mining, Halvings & Unique Economics

BTC ELA CRC

Elastos ($ELA) presents a compelling narrative in the cryptocurrency ecosystem, paralleling Bitcoin’s disinflationary ethos while charting a unique path through its technological integration and economic modelling. Let’s explore some of the key highlights of ELA and its economic model:

  • Merge Mining with Bitcoin: ELA’s merge mining with Bitcoin allows it to benefit from Bitcoin’s substantial hashing power (580.74 EH/s), with ELA itself achieving an impressive 293.69 EH/s, roughly 50%. This synergy enhances security while maintaining energy efficiency.
  • BPoS Validator System: The Elastos BPoS Supernodes add a secondary layer of security by verifying and signing each ELA mainchain block provided by Bitcoin miners. BPoS engages two participant groups: stakers and validators, with staking ELA to vote for validators and APR for both.
  • Fixed Maximum Supply: ELA caps at 28.22 million coins, with the final coins expected to be minted by December 2105. This fixed supply mirrors Bitcoin’s scarcity principle, foundational to its value.
  • Disinflationary Nature: ELA follows a 4-year halving cycle similar to Bitcoin, effectively cutting its annual inflation rate in half. This model ensures a gradual decrease in new ELA supply, enhancing scarcity and potential value over time. Like Bitcoin, ELA’s halving reduces the reward for block production, transitioning incentives towards transaction fees over time, and ensuring long-term network sustainability. The next halving is in December 2015.
  • Current Mining Dynamics: With a block generation time of every two minutes, ELA rewards are distributed among Bitcoin PoW miners (35%), BPoS validators (35%), and the CRC DAO treasury (30%). This distribution model incentivizes diverse participation in the network’s security and governance.

 

The Significance of Merge-Mining with Bitcoin

Merge mining enables Bitcoin miners to mine both Bitcoin and Elastos by running Elastos code alongside, without additional costs or energy. This leverages Bitcoin’s vast hashing power (580.74 EH/s, with ELA at 293.69 EH/s) to secure both networks efficiently. By integrating Elastos’s mining process with Bitcoin’s infrastructure, miners can earn extra rewards in ELA, fostering a mutually beneficial relationship that enhances ELA’s security and economic incentives. This dual mining opportunity not only augments revenue for Bitcoin miners but also promotes a cooperative ecosystem, highlighting merge mining with Bitcoin as a strategically valuable feature for bolstering network security while being environmentally considerate. ELA today has roughly 50% of Bitcoins security protecting the network’s value.

 

Earning APR with ELA.

What’s more, you can earn ELA as a community member with Bitcoins security provided. Here are three of the core ways:

1. Participate in Staking:

  • APR: Up to 2-3%.
  • Lockup Duration: 10 to 1000 days.
  • Equity Tokens: 1 staked ELA = 1 voting token.
  • Rewards: Based on amount and duration.
  • Profit Sharing: 25% to node owners, 75% to stakers.
  • Special Nodes: 12 CR Council nodes excluded from voting.

Re-Voting: Necessary at pledge end to continue earning. Here is a detailed guide on how to stake.

2. Becoming a BPOS Validator:

  • APR: Up to 22%.
  • Entry Requirements: 2,000 ELA pledge, $6/month maintenance.
  • Rewards: 25% of block rewards.
  • Yield Factors: Staking amount and time.
  • Selection: Randomly chosen 36 nodes every 36 blocks.
  • Rewards Distribution: Automated by Elastos mainchain.

Here is a detailed guide on how to become a BPOS Validator.  Here is additional support on validator requirements.

3. Cyber Republic Council (CRC) DAO Member:

  • APR: Up to 35% (rewards and sidechain transactions).
  • Cyber Republic Consensus: Governance mechanism for community decisions, Elastos sidechain blockchain validation (EVM and Identity), and ecosystem development, utilizing a delegate model for decision-making and proposal voting.
  • CR Council Member Nodes: 12 community-elected delegates using ELA to vote become responsible for decision-making on community affairs, proposal recommendation, and voting.
  • Community Members: Rights include voting in elections, submitting proposals, and monitoring and impeaching council members.
  • Election and Term:
    • Participants need Elastos DIDs and a 5,000 ELA deposit.
    • Election via ELA voting, top 12 candidates become council members. The election process starts one month (about 21,900 main chain blocks) before the current members’ term ends for seamless transitions. The next election term begins in April 2024.
    • One-year term, with provisions for impeachment and automatic removal under specific conditions.
  • Rewards and Responsibilities: Council members receive mainchain ELA rewards and Sidechain (EVM and DID) transaction revenue.

Learn more here.  Follow Cyber Republic Twitter for the latest updates on elections and guidance.

 

Elastos and ELA combines Bitcoin’s disinflationary approach with its own technological advancements and economic strategies, enhancing its network security through merge mining with Bitcoin and offering a BPoS Validator System for additional security and APR. With a disinflationary model and a fixed supply limit of 28.22 million ELA, the ecosystem incentivizes participation through mining rewards distribution and provides APR earning opportunities via staking, BPoS validation, and the Cyber Republic Council (CRC) DAO governance. These features, alongside its economic policies, position Elastos as a distinctive and engaging platform in the cryptocurrency realm, aligning with Bitcoin’s ethos and security. Learn more here!