In today’s article, we are delighted to provide some answers to some of the community’s burning questions, namely about running a node for the SwapDEX Smart Chain (SSC) and the roll-out of the new version of the SDX coin.
When we were considering the amount of SDX that should be required to run a node, we set out to strike a happy medium to set it at a level that requires a decent, meaningful investment, but one that was not out of reach for most people, especially early investors. Part of the core identity of the project is an absolute commitment to decentralisation and we see an essential component of decentralisation being the empowerment of people to take control of their finances. We have been motivated from the outset by the position that we are not building a platform where it is solely a case of the rich getting richer (though they likely will!), rather we are trying to create a community oriented supporters get supported environment at SwapDEX.
So what’s the Happy Medium?
With the above in mind, we have decided that the sweet spot of the amount of SDX you will be required to lock away to run a node is 10,000 SDX per node. This is an exact figure, if you hold more than 10,000 SDX and want access to a higher percentage of node mining rewards, you are welcome to run multiple nodes.
While we do not expect everyone who is eligible will run a node, as at 27th March 2021, there are about 445 holders with 10,000 or more SDX and for a new investor to buy 10,000 SDX, it would cost about $1,400 USD based on current price of around $0.14 USD. We know that as the price increases, it may become less feasible for new smaller investors to be able to run a node, however they will still be able to generate passive returns by staking their SDX.
The SSC runs on a Proof of Stake basis where it does not require a substantial computer setup in order to be an active node. We will provide comprehensive written and video guides once the SSC has gone live for the actual process of setting up a node, however as far as the required technology requirements go, you will be able to run a node on any of the following, providing they have at least 4GB of RAM:
- Standard computer or laptop.
- Raspberry Pi.
- Virtual Private Server with a Linux based VPS being recommended.
- Mobile phone (not the first choice, but as long as it has 4 GB of RAM, it’s possible).
There are no maximum number of nodes allowed on the SSC — the more nodes running, the stronger, faster and more secure from malicious attacks our chain will be. While we know in practice that it will never reach this point, for the sake of clarity, the SSC requires only one node to be active in order to run.
New SDX Coin
When we launch, it will be on our own chain, the SSC, so the ERC-20 SDX token will be replaced by the SDX coin. In case you were wondering about the difference between a coin and a token, a coin has its own chain while a token is a pair on another chain which is why SDX will be changing from a token paired to eth to a coin bossing it on its own chain. When it comes time to launch and switch over, the new coin will be airdropped to existing holders on a 1:1 basis at the time of the drop so you are welcome to continue trading until then. We do not recommend you add liquidity to the ETH/SDX pair on Uniswap however.
Burn Baby Burn
As we prepare for the release of the new SDX coin, we have been looking at the existing SDX token there is a current total supply of 327,530,000 with around 88.6million of this being in current circulating supply in the hands of holders. This amounts to 27% of the total supply being in circulation held by the community. While much of the existing total possible supply is held in company wallets that were never intended to enter circulating supply, as the platform starts to take shape, it does not sit well with us that the current distribution of tokens is far too heavily weighted to SwapDEX wallets rather than being held or controlled by the community. Therefore, when we roll out the new SDX coin, we intend to address this disparity. On release of the new SDX coin, the starting total supply will be 200,000,000 which will be allocated as follows:
- ~90,000,000 new SDX coin airdropped 1:1 to existing holders to replace existing SDX token.
- 70,000,000 SDX to the Community Treasury — this fund is entirely controlled by the community for initiatives to strengthen the platform. Proposals can be sent with the amount of SDX they will require and they will be voted on by those running nodes (1 node = 1 vote). If a proposal has a majority of votes in favour after the voting period ends, the Treasury will be unlocked and the amount of SDX specified in the proposal will be made available for the purpose of what was put forward.
- ~40,000,000 SDX to the SwapDEX Reserve — this fund will receive the leftover amount after the airdrop and the Community Fund is allocated. This fund will be used by the team to continue to support and develop the platform. It is not receiving mining returns so it is set at a level that is intended to last a lifetime.
In our last article, we confirmed the fact that all transactions on SSC will require SDX to pay for the gas and gave a proposed split up of the mining returns. We said at the time they were not set in stone and after a rethink, we have made some small adjustments to the allocation. We are pleased to advise the confirmed split up of the mining returns for all the chain’s transactions will be:
- 51% distributed to the active nodes on a pro-rata basis (112.2 block reward per minute).
- 9% distributed to stakers on a pro-rata basis (19.8 block reward per minute).
- 40% to the SuperBlock, which we refer to as the Community Treasury, to be used for the benefit of the SwapDEX platform and SDX holders for initiatives voted and agreed on by SDX holders (88 block reward per minute).
There will be 220 block rewards per minute which amounts to approximately 9.5 million SDX released per month in the first year. This is intended to reward early adopters. After each year, the rewards will halve so it will be approximately 4.25million SDX per month in the second year, 2.125 million SDX per month in the third year and so forth.
New Medium Account
As a final note, for those of you who follow our Medium account, we had to change the account so please follow this account rather than the previous account. This change was required in order to automate Medium blog integration into our sexy as hell new website.