What Is Mithril (MITH)?
Mithril world adopted Stake model as a safety feature, weighing its players by, not computing power as its PoW (Proof of Work) counterpart, but how many tokens they are staking—solving extravagant computing power arms race for the right to produce. On the strength of that, it was making its debut while claiming its superiority over PoW. Any PoS system is underpinned by the stakability of its token, as an approach to keep it democratic enough. It is, in a way, solving the centralization problem of computing power in PoW.
This mechanism, however, puts “Stake” itself at stake. Whereas, relevant solutions are not perfect enough so far, some hurting the interests of token holders, some others depreciating the system as a whole. On the one end of PoS spectrum, almost all field tests of it are integrating incentives for a higher Stake ratio from a safety aspect. On the other end, they also are binding stake tokens to a lock period to prevent potential attacks from a bulky token staker. In the middle is a paradox between the safety of main net and the liquidity of tokens.
That is to say, a system that locks all tokens staked is an extremely safe one, but its value growth is pushed to the brink due to zero token liquidity. Therefore, Mithril are determined to create a decentralized protocol that provides liquidity, that can make locked assets circulate freely. In this way, Liquidity is guaranteed by issuing rToken (reward Token) while the original tokens are staked to the chain remain comparatively static to keep the system safe.
Mithril Storage Key Points
|Circulating Supply||1.00B MITH|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Mithril was debuted in 2011 by Quantum Mechanic on Bitcointalk Forum. The system creatively replaces computing power weight by token weight in Block Producer elections. Token holders can claim its run for BPs to the system by staking their tokens, while the system selects BPs through random algorithm. Those selected will be responsible for packing, verifying of transactions and prolonging the chain. As a late-comer to the game, PoS drew on the experience of PoW with regards to consensus, elections, packing, validation and so forth.
As technology advances, PoS is steering the development of blockchain world in performance, capacity and sustainability. 2019 and the following year will be seeing, with excitement, the landing of second-generation PoS 1 consensus as projects like Cardano, Tezos, Cosmos, and Polkadot will soon launch the main net, making them the touchstone of PoS consensus in the new era.
Standards or delegate to professional validators
Stake model in PoS overturned computing power weight, integrating the right of possession with that of mining. So that the token holders can participate in the system consensus just through staking. During the whole process, the token holders only have to run servers of certain standards or delegate to professional validators (After 2015, all mainstream PoS projects started integrating delegating mechanism to enhance the staking ratio of tokens, thus making the system safer).
Mithril Moreover, random election solves the problem of squandering computing power brought about by mining competitions. At the same time, a new blockchain relationship is created—holders are miners, blowing a new wind to the public chain world. Incentives, no matter when it comes to PoW or PoS, are integrated in order to encourage engagement in nodes operation.
Incentives to guarantee
Right before the launch of a main net adopting PoS consensus, the system will strengthen the incentives to guarantee that enough tokens will be staked. Therefore, more coins that are initially distributed will be locked to step up systemic safety. As Arthur, the founder of Tezos, wrote in that project’_s whitepaper the preliminary incentives must be high enough. This is of paramount importance for a safe launch of main net. Stakers must bear certain time and opportunity costs (2).
If the incentives fall short, the Mithril will bear grave safety threats. Another example, Cosmos wrote floating annual rate that is as high as 7%~20% to its codes to motivate staking while their main net was launching. Lock period is an important feature that sets PoS apart from PoW consensus. In Stake model, the system has stability requirements for tokens staked, which is used to prevent long-range attacks: Nothing at stake. There is also a problem of computational fragmentation.
Mithril The tokens that have been staked are locked by the system for a certain period(3). Although the token holders can initiate the unlock at any time, but the tokens will still be untradable during the unlocking period. That is to say, holders still can’t dodge the risk of value fluctuations of the token at that phase. This is underlied by the contradiction between Token Stake security and token liquidity.