What is NGK token incentive model? How to perfectly interpret the significance of economic incentives
As we all know, consensus mechanism is the core in the field of blockchain, and economic incentive mechanism is the core part of consensus agreement design. A reasonable economic incentive mechanism is of great significance. It can motivate consensus nodes to run honestly and curb the malicious behavior of consensus nodes. It is an economic driving force based on technology. This article will introduce you the significance of the blockchain economic incentive mechanism and the current 3.0 blockchain NGK economic incentive model.
In a narrow sense, economic incentive mechanism is the basic guarantee to maintain node operation, ensure chain safety and chain vitality. In the blockchain system, the consensus node is responsible for packaging transactions, generating blocks, taking on the important task of chain development and continuation, is the key to ensure chain security, but also the main body to maintain chain activity, thus in the design process of consensus protocol, the core purpose is to establish a sound and efficient consensus operation system. However, the function of economic incentive mechanism in consensus design is to inject benefit driving force into consensus node, so that node can get economic reward in the process of running consensus agreement. This part of reward needs to cover the cost of node maintenance operation, and at the same time, it needs extra part as income, so that node can be profitable in participating consensus and will have the will to maintain the development and operation of the system.
In a broad sense, the economic incentive mechanism is the fundamental support for the blockchain to carry the value circulation and maintain the ecological operation. Economic incentive mechanism is the driving force to promote the blockchain ecosystem, which stimulates the operation of consensus, consensus carries the circulation of value, and circulation gives value meaning. Meaningful value re-compensates the operation of economic incentive mechanism, in this complete closed process, economic incentive mechanism is both the starting point and relay, as well as the whole value system of igniter and combustion aids, which plays the role of basic support.
At present, the reliable blockchain NGK in the market adopts the DPOSS consensus mechanism, and designs the perfect economic incentive mechanism to ensure the sound development and operation of the blockchain network. In NGK blockchain networks, token holders as well as block producer could enjoy the benefits of economic incentives, who will be rewarded by voting, while block producers will be rewarded by rotating bookkeeping.
As for the sustainability of the reward, NGK sets the total amount of the reward at the beginning of the system, and then releases it according to the market force. NGK blockchain is constantly generating transactions, and protects the incentive of block producers. The persistence of block producer rewards makes the blockchain network has the power to keep running, in order to keep the blockchain running well, if the block producer does not produce any blocks within 24 hours, it will be directly replaced by the backup node.
The ecology will distribute the NGK to the developers and contributors as well as the power holders, promote the community ecology in an all-round way, NGK will build up the new recyclable economy ecology, realize the large-scale landing of the business model, promote the construction and development of the financial system of the new era, so as to achieve the goal of leading the times reform!