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Details of Systemnode Release
« on: December 17, 2017, 09:12:29 pm »
Details of Systemnode Release

Crown Core Team

16th October 2017

What is a Systemnode?

A Systemnode is a server on the Crown network that is secured by collateral and provides services that support applications and services published via Crown Atomic. The operator of a Systemnode will be rewarded a portion of the block reward in return for providing those services.

Why are Systemnodes necessary?

Under the Crown Atomic architecture, Tron Masternodes are focused on transaction confirmations and application verifications.  In order to provide any services, there is a requirement for a swarm of application provider nodes.  These are Systemnodes.

How many Systemnodes will there be?

There is a desire (but not strict requirement) for there to be more Systemnodes than Tron Masternodes. We have designed the relationship between Systemnodes and Tron Masternodes to negotiate their own equilibrium of numbers but our expectation is that numbers will stabilise at between 4,000 and 5,000 Systemnodes and between 1,000 and 2,000 Tron Masternodes. The community and network will ultimately decide on the natural levels.

Are there other benefits to Systemnodes?

An ideal community should have more small token holders than large token holders.  The price of a Tron Masternode has exceeded $15,000 which is far too high a cost of entry to participate on the Crown network. The decision has been made to require smaller collateral for a Systemnode and to offer a greater relative reward for operating a Systemnode compared to a Tron Masternode in order to encourage more people to participate and join the Crown community.

What kind of tasks will Systemnodes perform?

The possibilities are endless.  The core team will release NTP timekeeping as the first Systemnode service in order to cater for the future planned consensus mechanism change.  The community will be free to develop their own utilities for Systemnodes to perform.

How much will it cost to run a Systemnode and what is the reward?

The Crown Core Team does not advise that a Systemnode or a Tron Masternode is an investment.  The value of Crown tokens might go down. Past value trends do not indicate future performance.  The number of Crown tokens that you receive for operating either kind of node will vary according to the number of nodes on the network at the time.

A Systemnode will require 500 CRW collateral and will receive 10% of the block reward.  This change will be at the expense of the miners.  The block reward can be summarised as follows:

Miner3.6 CRW
Tron Masternode4.5 CRW
System Node0.9 CRW
Proposal Fund1 CRW
Total:9 CRW (1 CRW per block reserved for proposal funding)

What is required to run a Crown Systemnode from a technical perspective?

People familiar with Tron Masternode setup will be familiar with Systemnode setup.

A unique IP is required for a Systemnode.  Each community member will be able to run one Systemnode in their local wallets if they choose, but a VPS is recommended as the prefered platform as the Systemnode wallet must be online 24/7 to provide services and receive rewards.

At this time, a single core 512Mb RAM VPS with 20GB of storage is the recommended minimum.  It may be possible to use less but this will not be supported by the core team. In the future, as usues grow, the hardware requirements will increase significantly.

A breakdown of possible Systemnode rewards is shown in the spreadsheet that partners this document.

How will the Crown Network change?

We expect the chance to participate in the Crown network with less collateral than a Tron Masternode and generous rewards to be attractive to a lot of crypto enthusiasts and small businesses alike. The expectation is that a large number of Systemnodes will be set up.

A Systemnode will earn disproportionally more rewards for their staked collateral compared to a Tron Masternode in order to encourage more Systemnodes to be set up.  For example, somebody who uses 10,000 CRW to run 20 Systemnodes will receive more rewards than somebody who uses 10,000 CRW to run a single Tron Masternode (at the current masternode count).

If some Tron operators decide to split his or her Trons into Systemnodes, then the Tron count would drop, and the Tron reward would increase for the other Tron operators. Similarly, the Systemnode reward would drop as the Systemnode count increases.  The network will find a natural equilibrium of node numbers.

It is difficult to guess where that equilibrium will be but the intention is for there to many more Systemnodes than Tron Masternodes.

We have decided to name the node equilibrium point the “Zuck Equilibirum” in honour of the person who devised the mechanism for the Tron and Systemnode relationship.

When will Systemnodes be released?

Systemnodes are already in the Crown testnet undergoing public testing.  Systemnodes will be released during November 2017.