PlatON is a future-oriented privacy computing and distributed economic infrastructure based on blockchain and cryptography technology. The goal of PlatON is to facilitate the transaction of data usage rights under the premise of protecting data ownership and privacy, and to establish a data and computing power circulation market based on the blockchain.

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Figure 1: Economic design goals of PlatON

The distributed economy related to the public chain can be divided into two layers:

The first layer is in the public chain, and the participants are mainly Token transaction initiators, miners, and network nodes. Economic activities are mainly Token transaction initiators initiate transactions, miners package transactions, produce blocks and run consensus algorithms, and network nodes synchronize and store distributed ledgers. The TPS indicator most directly reflects the efficiency of economic activities within the public chain.

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Figure 2: Layering of a distributed economy

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1. Initial issuance and additional issuance of LAT

• LAT does not have a hard cap and is divided into initial issuance and additional issuance.

• The initial issuance of LAT is allocated to the founding team, the PlatOn Foundation, academic funds, ecological funds and private equity issuers in a certain proportion, and a corresponding lock-up period arrangement is introduced.

• With each round of PPoS, LAT will continue to be issued. The additional issuance of LAT will be distributed according to the proportion determined by the realization. Most of the additional issuance of LAT is used as block rewards for verification nodes. A small part of the additional issuance of LAT is used as a staking reward for the candidate nodes that are not selected as verification nodes. The remaining LAT issuance is deposited into a trust fund to reward the PlatOn developer community, which is managed by the PlatON Foundation.

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2. Three stages of PPoS

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3. Analysis of the economic design in the PlatON public chain

First: Consensus participation is more fair and open than other PoS public chains

Similar to the DPoS of the EOS public chain, the election of candidate nodes in PPoS depends on the off-chain identity and credit of the candidate nodes. However, VRF introduces randomness into the link from candidate nodes to verification nodes, which reduces the dependence on off-chain identities. The link from candidate nodes to verification nodes introduces many uncontrollable factors, making the election of verification nodes difficult. manipulate.

Second, endogenously inhibit the expansion of mining pools

LAT holders will face the following question: whether to help a candidate become a candidate node first and then become a verification node with a higher probability, but then share the same benefits with more LAT holders? In this game, the LAT holders who get the highest rate of return are those who vote for the candidate nodes with few votes, and the candidate nodes happen to be selected as verification nodes, but because of the randomness introduced by VRF, which candidate nodes It is not known whether the selected node can become such a lucky person. Therefore, for LAT holders, in the election stage of candidate nodes, the benefits of decentralized voting are obviously greater than that of centralized voting. On the other hand, professional verification node operators are subject to the uncertainty brought by VRF, and the motivation to create "super mining pools" will also decline.

Third, compared with the Algorand consensus that also uses VRF, the cost is lower and fairer

First, in Algorand, VRF elects Token holders who participate in the Byzantine Agreement (BA*). Token holders do not need to lock their own Token, nor accept votes from others. The probability of each Token holder being selected is proportional to his own Token holdings. As a result, the Token holders participating in the Byzantine agreement have a weak binding relationship with the interests of the Algorand public chain. Those who have good off-chain credit but only hold a few tokens have little chance of being selected by VRF. The power to participate in BA* is only concentrated in the hands of giant whales. In PlatON, those who participate in the election need to lock the LAT, which strengthens the interest binding relationship between them and the PlatON public chain. Any LAT holder, even if the number is small, but has good credit outside the chain, can attract enough supporters, and is expected to be selected as a candidate node or even a verification node. In other words, the power of PlatON does not belong to the "rich", but to those with good credit.

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1. Overview of PlatON data and computing power circulation market

• PlatON uses cryptographic technologies such as homomorphic encryption and secure multi-party computing in data circulation to protect data privacy well, making it possible to trade data usage rights without affecting data ownership, which is the property rights basis of data transactions.

• The PlatON public chain serves functions such as distribution of computing tasks, matching of computing tasks and computing power, and transaction records.

• PlatON public chain design principles: on-chain consensus & off-chain computing decoupling (the core algorithm occurs outside the chain, through verifiable calculations, public chain nodes can verify transactions without repeated calculations), calculations are free from blockchain performance restrictions , LAT is used to settle the credit-debt relationship formed by data and computing power.

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Figure 5: The main roles in the computing power circulation market

1. The data provider provides corresponding data for calculation according to the input data format defined by the algorithm, but the data is still stored in the local database of the data provider.

2. The calculation coordinator is generally also the data provider. After the calculation coordinator obtains the input data, it first finds a computing power provider that meets the computing power requirements on the network, and then integrates the input data and algorithm parameters into multiple subtasks and distributes them to the computing power provider. The computing coordinator realizes the coordination and decentralization of computing by distributing computing tasks.

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2. Computing Power Transaction Pricing

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Impact of PlatON’s Economic Design on Governance Mechanisms

The value of Token is not only related to the total amount of economic activities in the public chain and the economic activities supported by the public chain, but also related to the coupling relationship between the two economic activities. Economic coupling is an important but underappreciated issue. For example, in many public chains built for DApps, DApps run their own Tokens. Most of the time, DApp users do not have a high transaction and demand for Token in the public chain. This can easily cause two problems:

DApp users do not care about the development of the public chain, although the value of the Token in their DApp depends largely on the security of the distributed ledger of the public chain.

It is the miners in the public chain that provide the foundation for the development of DApps by maintaining distributed ledgers, but it is difficult to directly benefit from the development of DApps.

Compared with general public chains, PlatON has a stronger economic coupling design, which is mainly reflected in the following three points:

• First, the LAT in the PlatON public chain is used to settle the creditor's rights and debt relationships formed by data and computing power transactions. The development of the data and computing power circulation market will increase the demand for LAT and constitute the value support of LAT.

• Second, participants obtain LAT by providing services such as data, algorithms, and computing power. LAT holders can participate in PPoS. The better they operate in the computing network and the more LAT they accumulate, the more influential they will be in PPoS. In other words, the deeper the commitment to the PPoS computing network, the greater the risk exposure of the participants, the more important the role they will play in PPoS. This also reflects a deep interest binding relationship, and also reflects the transmission of identities outside the chain to the inside of the chain.

• Third, similar to general public chains, PlatON supports the development of DApp and Defi, and will introduce the economic coupling design of DApp and Defi. For example, when Dapp issues its own Token, it must use LAT as a reserve, which can help LAT better capture value from the development of DApp. And the PlatON Foundation will donate part of the LAT reserves to the DApp community as "startup funds".

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