Proof-of-Networking (PoN) Consensus Protocol

Custom Consensus Protocol

The Xenio team has developed a novel consensus protocol, based on the best of existing Proof-of-Stake and Proof-of-Authority protocols, by combining and extending them in a new way to create our Proof-of-Networking system. The PoN protocol is not limited to gaming, but the implementation in the Xenio system is the first of its kind.

Rewarding Network Services

By rewarding servers for providing resources to network nodes, PoN avoids the waste of PoW and the feudalism of pure PoS. Nodes are only rewarded for verifiably helping the rest of the network by providing requested services.

Servers that don’t help stabilize the economy by staking coins are disqualified from the PoN rewards, as are servers that provide no services. This balance ensures the motivations of the service providers are aligned with the rest of the network.

Economic Stability

Using the planned superblock reward of 200 coins, a maximum 50 million total initial coin supply*, and a superblock reward every 20 minutes, inflation is projected to be limited to 10.51% for the first year, decreasing steadily with each superblock.

*Total initial coin supply is dependent on the number of coins purchased during the crowdsale

Stable Inflation Reward Formula

Stated values are for illustration purposes only. Final values will be determined at the end of the crowdsale. First year maximum inflation rate target is 10%, ±1%, regardless of the number of coins minted in the genesis block.

Using the planned block reward of 200 coins, a 50,000,000 total initial coin supply, and a superblock reward every 20 minutes, inflation will initially max out at a flat 10.51% per year no matter how many users, servers, or staked coins there are, and the inflation rate slows as more coins are minted.
PiConnected players
SiConnected players
BConnected players
This server's
connected players
This server's
staked coins
The sum of the product of the staked coins and active players from the set of servers that have both staked coins and active players
Pi Si B