Mining rewards for pPancakeSwap

Hello Incognito users,

Block rewards are split between the validators and Incognito DAO, a decentralized autonomous organization designed to fund protocol development and network growth. Incognito DAO collects a gradually reducing percentage of the block rewards, from 10% to 3%.

With this income, Incognito DAO will fuel the growth of the network, fund interesting projects, and give the project longevity. Specifically, we are using the DAO to stimulate usage on two main Incognito pillars: mining rewards for privacy apps and privacy markets.

In the latest app release (v5.1.2), we are getting 1% of DAO to incentivize users who trade coins using pPancake. In other words, ~15 PRV per day is distributed proportionally to pPancake’s users based on trading volume and the rewards will be paid every epoch (~4h).

A user can see the rewards history in pPancakeSwap page’s Reward history tab.

Please note, the rewards from DAO for each privacy app are subject to change when more privacy apps come. An announcement will be made when this occurs.

PS: The app performance is significantly improved in the v5.1.2 version too, we hope users would have a better experience with the new app. Happy trading!

Thank you!


Here is possibly how 15 PRV per epoch has been calculated:

8 shards * 32 nodes = 256 nodes
256 nodes * 9.0428 PRV per epoch = 2314.9568 PRV/epoch (%92 of all rewards)
2314,9568 PRV / 92 * 8 = 201.3006 PRV/epoch (DAO rewards)
201.3006 PRV * 7.75 / 100 = 15.6008 PRV/epoch for pPancakeSwappers

I hope I’m correct :slight_smile:

201.3006 PRV * 1 / 100 = 2.013 PRV/epoch
2.013 PRV/epoch * 6 epoch/day = 12.078 PRV/day for pPancakeSwappers


Yes, you’re right, we calculated a wrong percent in the original topic, updated it to 1% (still ~15 PRV per day). Let’s see how it’s going as more privacy apps and privacy markets’ liquidity mining come. Thanks again for pointing it out @abduraman.


I think it’s this:

Year 3 block reward = 1.12319946
Year 3 DAO percentage = 8%
Epochs/day = 6.1714
pPancakeSwap mining = 1% of daily DAO cut

1.12319946 * 350 = 393.119811 PRV per shard per epoch
393.119811 * 0.08 = 31.44958455 PRV per shard per epoch to the DAO
31.44958455 * 8 = 251.5966764 PRV per epoch to the DAO
251.5966764 * 0.01 = 2.515966764 PRV per epoch for pPancakeSwap mining
2.515966764 * 6.1714 = 15.52703729 PRV per day for pPancakeSwap mining

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Your calculation is totally incorrect :joy: Just kidding. In fact, our calculations should have given the same result. I think there is a point which needs to be explained.

393.119811 * 0.92 = 361.67022612 PRV per shard per epoch to the validators
361.67022612 / 32 = 11.30219456625 PRV per epoch per validator (This is higher even the first year reward)

Currently, we earn 9.0428 (~10.92 * 0.91 * 0.91) PRV per epoch which is correct. I ignore the changes in the rewards shares of DAO and validators since they are negligible.

Do some rewards go to the beacon chain’s validators? Or do I miss something in the calculation? As I remember, upon someone’s question in Telegram, Duy had said that the beacon chain staking could have been available to the public in the future.

The beacon chain gets 20% of each shard’s epoch rewards AFTER the DAO receives its percentages.

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This explains the difference in our calculations. Thanks.

Well … there is a maths issue … somewhere.

The first year block reward was 1.386666 PRV. Following the posted formula:

This yielded the reward amount seen by validators the first year.

Per the whitepaper, the block reward should be reduced by 9% every year.

Thus the second year SHOULD have been:

1.386666 PRV * 0.91 = 1.26186606 PRV. However that would yield 10.0476 PRV per each validator per epoch following that formula.

Year 2 rewards were closer to 9.937 PRV. To get that, the block reward reduction needed to be closer to 10%. 1.386666 PRV * 0.9 = 1.2479994 PRV, yielding 9.937 PRV per validator per epoch.

I extended that same “error”, reducing the annual block percentage by 10% instead of 9% for the 2nd annual reduction. That yielded the above 1.12319946 PRV block rewards.

But per the whitepaper, the two annual reductions really should be 1.14829812 PRV block rewards this year, yielding 9.2438 PRV per each validator per epoch.

So I’m not sure what this year’s annual block reward actually is. Following the original 9% annual reduction starting with a block reward of 1.386666, it should be 1.14829812 this year. But it seems to be much closer to a 10% annual reduction over the past two years, giving something closer to 1.12319946 this year.

I never got how the DAO percentage works and how it’s paid. Doesn’t the Incognito team collect 67% of the shard rewards in every epoch due to the fixed validator nodes? Is the DAO paid from this but with separated accounting? Or is the DAO percentage reduced from all rewards prior to validators being paid (including fixed ones)?

This is reducing the VALIDATOR reward not the BLOCK reward. The whitepaper states the annual reduction happens with the BLOCK reward. The validator reward comes after both the DAO and the beacon chain have taken their cuts of the epoch block rewards, which would include the annual block reward reduction. This is not fully accounting for that reduction with the DAO or the beacon chain.

This could be how the current rewards are actually being calculated. It is not what is stated in the whitepaper though. There already is a small difference in validator rewards (~ -0.2 PRV per epoch) that would continue to compound year-after-year using that method.

It’s in the posts I linked. The DAO percentage comes from each shard’s total rewards BEFORE the beacon chain percentage which is BEFORE the shard’s rewards are split between the validators (fixed + community, currently 32).

However, there has never been any accounting of how much the fixed nodes, the beacon chain, the DAO, Provide staking and Staking staking have collected and then been redistributed.

The team has posted several times that the proceeds are used for “marketing” and various “initiatives”. Without any public accounting though, we are just left to take their word on it. I certainly don’t think the team is up to nefarious deeds. Yet the lack of even a basic one-sheet accounting of these items continues to be quite frustrating. It leaves a lot of room for (bad, misconstrued and downright malicious) interpretations that will always leave the team catching up and reacting to those interpretations.

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Same thing. We decrease just the number of multiplications. The difference occurs since I ignored the reduction in DAO share as I wrote. I think the team also has ignored it :joy: as I do. Please see the calculation below.

Let’s start from scratch:

Without yearly DAO reduction:

1. year:

1.386666 * 350 * 0.9 * 0.8 = 349.439832 PRV per shard (the same number in the quote above)

349.439832 / 32 = 10,91999475 PRV per validator

2. year:

349.439832 * 0.91 = 317.99030172 PRV per shard

317.99030172 / 32 = 9.93719692875 PRV per validator

3. year (Now):

317.99030172 * 0.91 = 289.3711745652 PRV per shard

289.3711745652 / 32 = 9.0428492051625 PRV per validator

With yearly DAO reduction:

1. year:

1.386666 * 350 * 0.9 * 0.8 = 349.439832 PRV per shard (the same number in the quote above)

349.439832 / 32 = 10,91999475 PRV per validator

2. year:

(1.386666 * 0.91) * 350 * 0.91 * 0.8= 321.523472088 PRV per shard

321.523472088 / 32 = 10,04760850275 PRV per validator

3. year (Now):

(1.386666 * 0.91 * 0.91) * 350 * 0.92 * 0.8 = 295.80159432096 PRV per shard

295.80159432096 / 32 = 9.24379982253 PRV per validator

As you already stated, either DAO share does not decrease yearly or the validators’ share decreases by %10 instead of %9 yearly. In this case, either I should examine the code or wait for an explanation from the team.