Last June, we announced an update on our tokenomics, which was aimed at:
- – Clarifying the significance of PYLNC in the Pylon ecosystem in the longer term.
- – Clarifying the role and intrinsic value of PYLNC and the surrounding infrastructure (i.e. federated nodes) and the relationship between PYLNT & PYLNC.
- – Offering further clarifications on how Pylon plans to disrupt the energy sector in the long term (starting from EU).
Today, we are happy to release the updated version of our token paper, which reflects these updates.
The token paper has been published on our website and can be found here.
This post provides a summary of its highlights, which follows. Enjoy!
1. Becoming a federated node
Anyone can become a federated node by staking the required amount of PYLNT. The staking amount is 5,000 PYLNT. Whitelist participants that will become the first (genesis) nodes of Pylon Network’s Mainnet will receive a 30% discount on the staking amount (i.e. 3,500 PYLNT).
The process for setting up a Pylon Network node will be the following:
- – The user sends the required amount of PYLNT to a Pylon address, a signed text with an address and the address with which he/she signs.
- – A script will “listen” to the received tx at the Pylon address, it will check the signature and send it to the Pylon team.
- – Inside the script, a certificate is generated and encrypted, which is then used to mount the node.
There will be two options for becoming a node, depending on the technical flair of the interested users (and the time/hustle required).
- – From PylonNetwork, we will enable an easy system for the end user to make a deposit of tokens (staking) and the PylonNetwork team will carry out the set up and maintenance of the node – free of charge.
- – This user will have a key, which if he/she imports it to the official pylon network wallet, he/she will be able to view the balance of coins. It will also be possible to know the status of their node(s) via the blockchain explorer.
- – An image will be downloaded and installed on a server. This image will already have the PYLNC address integrated, where the mining reward will be received.
- – To start the node you will have to insert the KEY and go through the certification process.
2. Frequency and process of PYLNC distribution to Federated Nodes & PYLNT-holders
PYLNC distributions for Federated Nodes
- – Federated nodes receive 80% of the PYLNC rewards.
- – Distributions of PYLNC to federated nodes occur on every block.
- – The distribution occurs automatically to the integrated PYLNC wallets of the federated nodes.
- – The official PYLNC wallet can be synchronized with the integrated wallet of the federated nodes.
PYLNC distributions for PYLNT-holders
- – PYLNT-holders receive 20% of the PYLNC rewards.
- – PYLNT-holders can choose to commit their tokens for a period of one year (staking), or not.
- – Distributions of PYLNC to PYLNT-holders, who commit their tokens, occur daily (every 24 hours).
- – Distributions of PYLNC to PYLNT-holders who do not commit their tokens, occur once per year.
- – The official PYLNT wallet will be used for the distribution process.
3. The value of PYLNC and the transition period after Mainnet launch
PYLNC is utilized as a fee for all transactions that take place inside the network.
In this form (and within what essentially becomes a consumer-centered energy data marketplace), PYLNC will play the role of reflecting the value of the energy data and trace / allocate their utility and value by the participating stakeholders. Note that Pyloncoin can only be mined on the Pylon blockchain.
Any entity that would like to interact with the Pylon blockchain will need to pay PYLNC as a transaction fee (i.e. gas) once the Mainnet is launched. An entity will either need to own a federated node or PYLNT, to receive PYLNC. Alternatively PYLNC can be bought from the open market via exchanges.
The fee in PYLNC is paid in relation to kbyte of data transacted with the blockchain and will be variable (with a maximum and a minimum). The maximum and minimum is dynamically regulated according to the number/size of transactions of the main pool. The exact fee structure will be determined (via a series of tests and validations) during the transition period of Pylon Network.
4. Pre-mined PYLNC & Genesis Federated Nodes
The total amount of Pyloncoins (Total Supply) will be 100,000,000 PYLNC and will be distributed over the next 16 years. Furthermore, 10% of the total coins will be pre-mined in the first (genesis) block – 10,000,000 PYLNC.
Please note that the pre-mined PYLNC (10M PYLNC) will be reserved for future on-boarding of new customers/users, to explore new use cases and demonstrate them in a real environment.
The pre-mined coins will be held in a wallet, with a publicly known address and any movement from that address will be done under fully transparent processes and previous communication.
5. Whitelist for federated nodes and launch of MainNet
The Whitelist will be launched shortly after the publication of the updated token paper. The communication of the launch will take place via all our communication channels as well as external channels. For making sure that you receive all the information, join our official telegram chat and announcement channels.
The Whitelist discount benefits (-30%) will only be available for nodes that register before the launch of Pylon Mainnet. Anyone who wants to set up a node after that will not get this discount and will be required to stake the full amount – i.e. 5000 PYLNT. Each token holder is allowed to own more than one Federated Node, if they wish to stake the required amount of PYLNT. Note that for setting up a node, KYC process will be required.
Pylon team will have a minimal amount of nodes, which will be determined by the external interest and participation in the Whitelist for the FN.
The publication of the whitelist will be communicated via all our channels and communities.
6. Market implementation and business strategy
Pylon is going to take the Bottom-Up approach i.e. interact, learn, and adapt to achieve the long-term vision. We believe this is the only way which will allow us to deliver value to our customers and establish the much-needed trust which is currently missing in the energy sector.
The recent regulations around Collective Self-Consumption (CSC) have presented us with a huge opportunity to implement this use case in Spain and at the same time, expand into other countries with similar potential.
The implementation of the project will be carried out in three (3) stages, leading to the long-term, full deployment of Pylon Network’s ecosystem around Pylon NDH, as shown below.
7. The fresh looks!
The updated Token Paper comes with a sneak peak of Pylon Network’s new looks and identity: new colors, new logo and a new era!