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Delegated-Proof-of-Importance (DPoI) consensus algorithm integrates the concepts of Delegated-Proof-of-Stake (DPoS) and Network Theory. The algorithm can calculate the network participant’s importance based on other participants’ evaluation. The algorithm considers and ranks their stake and incoming transaction activity, including both transfer and social activities.Social and economic interaction of U°OS network participants is evaluated by others thus creating importance (i.e. reputation on the network). The interactions are expressed in transactions recorded in blocks of U°OS blockchain by block producers. Block producers are elected by U°OS network participants with non-zero importance. Calculator nodes are dedicated to calculating transfer and social activity indices of every account on the U°OS network. Calculator nodes are community-owned and receive a regular emission of UOS tokens.
U°OS governance system provides a toolset for governing decentralized communities and organizations. The importance rate determines the power of vote. It allows any network participant to influence the network and its development. The governance is carried out by means of electing delegates and direct voting for any initiatives, i.e. changes or innovations.U°OS protocol has a specific transaction type called social that allows increasing Importance of other accounts without a direct transfer of tokens. This transaction reflects social interaction between accounts. For example, U°Community dApp uses the social transaction in order to upvote, downvote, follow and publish content.
U°OS economic model provides balanced value redistribution inside the network through adaptable token emission proportionally spread among participants according to their social and economic activity. This mechanism ensures balanced distribution, efficient protocol development and stimulates network growth.
U°OS economy functions with use of UOS core token. Token ownership grants the right to utilize network bandwidth, CPU, RAM and prospectively storage. Staking tokens influences the account importance and as a result the governance ability and the right for emission share. Tokens can serve as a medium of exchange, a store of value, and as a unit of account.
Economic efficiency requires the certain level of liquidity which is provided by UOS token and tends to conserve its nominal value. The token emission is dynamic and correlates with network development. The indicator called Network Importance (NI) describes the total volume of social and economic transactions among network participants and is used as a trigger for additional emission. The emission takes place every time NI reaches its all-time maximum. The algorithm also considers average token velocity. Token exchange rate sustainability is supported by shortening/extension of unstaking period. Newly issued tokens are distributed among network participants according to their Importance rate.
The challenge for U°OS is to build more scalable and sustainable infrastructure with an interface sufficiently easy-to-use for mass adoption. Any individual or organization from any economic system would use this infrastructure for interaction at minimal cost.
The only condition for network existence is the network growth. As Metcalfe’s law states, the value of the network is proportional to the square of the number of connected users of the system.
U°OS provides a solution for various networked economic systems through the adaptable framework that contains the network growth factors at the algorithm level. Such a decentralized and self-adjusted environment has all the potential for acceleration of existing economic processes within networks.