Objective

The proposal aims to allocate tokens from the Reserves to miners and validators on the Quantum Portal Network, testing the Monetary Policy and allowing Ferrum to evaluate the operation of permissionless miners and permissioned validators.

Description and Details

Proposed Action(s)

Staking Requirement

Requirements for Ferrum Mainnet miners and validators are projected at 250k and 2.5 million, respectively, adjustable based on QPN mining launch data. QPN staking requirements and rewards will be 10% of Ferrum Mainnet's, setting thresholds at 25k for miners and 250k for validators.

• Staking Thresholds:
  • Minimum: 10K FRM
  • Maximum: No limit, rewards proportional to stake.

Basic Requirements for Miners

• FRM is the staking token, required on each chain mined.
• Minimum stake for a miner node: 25K FRM, including delegated stakes.

Staking Requirements for Miners

• Quantum Portal Network:
  • Miners: 25K FRM
  • Validators: 250K FRM, initially operated by the Ferrum Foundation, with future DAO voting for whitelist.
• Ferrum Network:
  • Miners: 250K FRM
  • Validators: 2.5 million FRM, with similar DAO voting plans for operation.

Release of Rewards

Projected release rate is 0.035% of reserves per expansion period, with 20% to Treasury and 80% to Node Runners, based on stake. Approximately 1,437,800 FRM tokens to be released over 6 months starting mid to end of March.

Reward Split between Miners and Validators

Rewards split based on staked balance, with a hypothetical split of 66.66% to QPMs and 33.33% to QPVs if staked balances are 500k FRM and 250k FRM, respectively.

Timeline

• QPN Testnet: March, for about a month, to test and adjust before mainnet release.
• QPN Mainnet: April to September/October for real rewards distribution.
• Ferrum Mainnet: Preparations for launch and Polkadot slot acquisition around October/November 2024.

How to qualify as a miner or validator?

A campaign will be launched to fill 60 slots for miners and stakers, with details forthcoming.

Benefits

The initiative aims to secure and optimize the network through data collection and operational improvements, testing the Monetary Policy in practice.

Potential Risks or Downsides

Inflation and technical inefficiencies during the testnet phase are anticipated but considered manageable.

Resources Required

Successful execution requires Ferrum team's extensive involvement, particularly in front end, UX/UI for dashboards, and fee distribution module testing.

Voting Options

• Option 1: Approve the proposal for operating nodes on QPN.
• Option 2: Revisit the proposal.

Impact Analysis

This proposal introduces a new token utility, offering yield opportunities for FRM holders and securing the network for developer use.

Alignment with Ferrum Network’s Mission and Values

The initiative aligns with Ferrum's interoperability focus and community-first values, marking a significant step towards enabling multichain dApp development.

Execution Plan

• Complete the “QP Mining Infrastructure” roadmap item, involving smart contracts, UI, and infrastructure development.
• Launch the QP Mining Rollout campaign to offer mining slots, supported by trade and stake initiatives.

Teams responsible:

• Mainnet development, QA, PM
• Marketing, Product, PM