Dear $PAC Community,
As we continue forward with our goal to bring $PAC to the forefront of our industry and to build a usable, global digital asset we must make decisions throughout our journey that might seem controversial to some. Over the past year, we have been able to clearly ascertain certain aspects of our product that need improving, specifically within in the $PAC coin design and its accompanying network infrastructure.
It is with great pleasure that we can now formally breakdown the past few weeks of development that has resulted in a currently live, stress-tested and fully working product throughout our test net.
First and foremost is the need for consistent block times on our chain. Currently, we are being victim to hour long blocks (sometimes worse) due to inconsistent hash (mining power) applied to our network, which creates an unfavorable experience for traders, users, and most importantly our merchants. Everyone should be able to send and receive $PAC at a fast and reliable rate. To ensure that this is achieved, $PAC is preparing itself for some major changes. What follows is a list of things being developed and tested currently:
– A Switch from POW (proof of work) to POS (proof of stake) – For a detailed read on why POS is a better choice for the $PAC network, please read this guide as a starting point)
– Block Re-targeting algorithm change from DGW to DualKGW3
– POS rewards lowered from 15% per block to 1% per block; the remaining 14% will be reallocated to the superblock (20% to 34%)
– Update to DASH 0.14 code release, in tandem with our above code improvements
– Network proposal fee increase from 5,000 PAC to 100,000 PAC
These are some big changes to the $PAC Network, but each change has been properly scrutinized for its pros and cons, with the pros heavily outweighing the cons across all discussed scenarios. These changes are being to be put into effect to address the issues we currently face and have faced for the better part of the last 2 years. Some of these issues are:
– Inconsistent block times
– Spiked mining
– Rate of ‘guaranteed’ inflation
– Network security
Why switch from POW to POS?
By switching from POW to POS, we will no longer rely on 3rd party hash resources to move our blocks. This has proven costly and ineffective in our short life span, which has made our ability to market $PAC as a usable merchant-focused product for fast and secure transactions nearly impossible. POS (Proof of Stake) will better fit our design and ensure a consistent block rate. Some POS coin designs favor the ‘rich and larger holders’ more than the regular investor community. We are taking steps to ensure that is not the case. Our POS design will include a minimum/maximum of 1 $PAC that can stake per wallet.
This means literally only 1 $PAC per wallet is capable of staking, which creates an even distribution of $PAC POS rewards among all holders worldwide that own and operate a wallet with at least 1 $PAC as the balance. The rewards distributed per block for POS would be reduced to 1% of the entire block creation amount, which equates to 184 $PAC per block. This amount would be distributed evenly between EVERY PAC wallet that is actively staking. Obviously, this is a very low reward amount which shows that POS will not be a source of receiving significant ROI, rather it will be specifically to
ensure consistent blocks serving the network as it should.
Additional info: Masternodes are still going to be ran on the network, moving from POW to POS does not remove masternodes or their functions on the network. ROI for Masternodes remains unchanged.
How are we tackling $PAC ‘guaranteed’ inflation?
The 14% being removed from POS rewards will be reallocated to the DAO superblock amount. This means that the budget available increases, however these coins are only created if a prop posted to the $PAC Network is approved for funding. Basic knowledge of the prop system will show that this will lower the amount of coins the $PAC Network is guaranteed to produce per block, per month which means LESS $PAC added into circulation, per month for the community and the ONLY way these coins are produced are a result of an approved proposal.
Currently the amount of ‘guaranteed’ coins produced per block and added into circulation is 14,720 $PAC , with this change the ‘guaranteed’ amount of $PAC is now reduced to 12,144 $PAC. This is potentially a maximum of a 17.5% reduction to inflation if NO proposals are voted through that month, however if the entire superblock allocation of funds is released due to a vast increase in proposals then the inflation rate, unfortunately remains the same.
Once we update to DASH 0.14 how are we different to DASH?
DASH 0.14 code release will also be implemented on the $PAC Network. This comes with a lot of additional security features and innovations that will only benefit our current $PAC Network. Here is a link of the code release so anyone can see what is included.
Whilst we want to capitalize on all of the great innovations our father project has built, we still are by no means a ‘copy’ of DASH. For starters our block reward breakdown is vastly different, we will have no ‘mining’ in the traditional sense due to our POS changes and remove the ‘greed’ based incentive that mining typically brings to blockchain. Mining is traditionally supposed to be a profitable activity, with the price of assets reflecting the ‘break-even’ point at which mining becomes profitable to the miner. Miners typically liquidate their rewards immediately to cover the costs of electricity and hardware upkeep thus constantly dictating the price of the asset. With the ROI for $PAC using our 1% distribution model being so low, the only people ‘staking’ their $PAC in the network will be those who intend to keep the chain running at a consistent rate in tandem with our new re-targeting algorithm changes, which further set us apart from DASH from a technical standpoint.
Why are we changing the network proposal fee?
Another thing we are improving is the current fee to post a proposal to the $PAC Network. Currently the fee is only 5,000 $PAC (which is only $3.87 at the time of publication). This is being increased to 100,000 $PAC ($77.50 at time of publication) to ensure those that are submitting proposals are sufficiently invested in the project and are willing to outlay a reasonable expense for the chance to showcase a quality proposal to better effect our network and reduce the amount of ‘money grab’ attempts that have been seen in the past.
What if the price of $PAC increases? Won’t it be too expensive to submit a proposal?
DASH has a thriving and hugely beneficial proposal ecosystem, it currently costs 5 DASH to submit a proposal to their network ($825.65 at time of publication), considerably higher than what it costs for $PAC users right now. As the $PAC network grows (and price along with it) then the cost to submit a proposal should increase along with it, as the proposal submitter is pitching to a larger network, with a larger user base and a larger budget pool. The added value of the metrics mentioned in the last sentence to the proposal submitter far outweigh the increased cost and only further improve the changes of a worthwhile proposal being submitted to the network.
– Brad Marsh (CMO)
– Drew Saunders (COO)