Trittium Masternodes Receive Proof of Consumption Rewards
Although one of the main incentives for running a masternode on a network is, unlike proof of work mining, the ability to receive rewards with little ongoing operational cost; controlling inflation and balancing supply and demand remains a key challenge.
One solution, which has been under development by Trittium, is to switch to a so called Proof of Consumption (PoCon) model. Testing of PoCon on Trittium's live production blockchain began yesterday (14/02/2019) and, according to the Trittium whitepaper v2.0, the goal will be for revenue to be used as follows:
1. A percentage will be retained by the platform for maintenance and operations.
2. A percentage will be burned to maintain the set maximum coin supply.
3. A percentage will be paid to masternode holders in the form of dividends.
The key concept behind Proof of Consumption is rather than distributing a pre-programmed supply of an asset to masternodes, which could outstrip demand and lead to hyperinflation, the rewards are instead linked to the actual spend of the utility token on the platform for services:
Initial tests for the distribution of rewards on the production Trittium network via a Proof of Consumption mechanism appear to have been successful as Masternode owners have received small amounts of TRTT into their Masternode Wallet addresses. Rewards are also to be distributed on the trttNodes platform.
Revenue at this time is currently generated through the trttNodes platform but it is anticipated further rewards will become available following the currently delayed release of trttLoans.