ION is rebasing to Dash! Here's what you need to know.
♊️ Revolutionary POW/POS hybrid consensus
🔒 Enhanced security
📉 Deflationary factors
⛏ Token mining
POW/POS hybrid consensus
The ION network is currently secured by a Proof of Stake protocol (staking with masternodes). The Dash network is currently secured by Proof of Work (mining with masternodes). The future ION network, implemented in the new fork, will be a hybrid model that rewards regular staking wallets, masternode operators, and miners for their contribution to ION’s enhanced network security.
Neither POS nor POW is perfect. POS has technical limitations and POW is potentially vulnerable to double spending and 51% attacks. The hybrid model results in a network that is more robust by making it much harder to perform an attack and by adding randomness that helps thwart any attacks that are attempted.
The fork will implement ION Improvement Proposal 6 (IIP 6), reducing the block reward and changing its distribution. By reducing the block reward to 0.5 ION/block, inflation is nearly eliminated. Network rewards for staking and operating masternodes will be smaller, but these operations will soon be the only ways new ION is added to circulation. As ION becomes increasingly scarce, it also becomes a more compelling store of value.
Mining rewards will be paid in tokens. The reasoning behind this choice is promotion and utilization of ionomy’s ATP system. This technology is not available on any other blockchain. ATP provides unlimited possibilities with its permissionless tokens. Although the design and economics of the mining token (Electron) are still being kept under wraps, expect a token designed for utilization in the ionomy ecosystem.
After the fork, roughly half of the blocks will be POS and the other half will be POW. The targeted block rate is 60 blocks per hour (POW and POS combined).
For POS blocks, 75% of each block reward will be paid to masternodes with the remaining 25% going to stakers.
For POW blocks, the masternodes also earn 75% of the block reward, and miners earn Electrons, a new token in the ION ecosystem. Although CPU mining may be feasible (and faster) for a short time, the DASH X11 algorithm will eventually need dedicated hardware for mining (e.g., an ASIC).
Get ready for ION 4.0 testnet
The new ION is just around the corner! The team plans to invite the community to the testnet in advance of the fork to practice setting up the new wallets and masternodes. Stay tuned!