In a bid to improve the scalability of its network, EtherZero, has hinted that the upcoming 3.0 upgrade will introduce a masternode sharding scheme on its main chain. Whilst the current masternode framework will serve as the core chain, there will be multiple sharding chains for application-specific services such as payments and gaming.

Although the sharding upgrade is expected to go live in October 2020, there will be a warmup launch to test the effectiveness of the model. Interested users will be required to transfer their ETZ coins to the pre-heating plan contract.

To drive participation, the EtherZero team has said that the inflation ratio for the warmup will be “greatly increased”. It is also worth stating that the inflation ratio is dynamic; starting at 80% and decreasing by 10% depending on the amount of pledged ETZ, until the ratio hits 20%. To put this in perspective, the total supply of ETZ is 200 million. If the total pledge ETZ is less than 10 million (1/20 of total supply), the inflation ratio will be 80%. This ratio will continue to drop by 10% for every 10 million ETZ in collateral that joins the network. It will eventually stabilize at 20%.

The mortgage period for the sharding staking scheme has been set to 90 days. Users may opt to renew their participation after every 3 months.