What about the expansion plan and economic model of CasperLabs

On February 20th, CasperLabs announced that it will conduct a token sale on CoinList on March 22nd. It will provide 3 different ways to participate, and registration is currently accepted. According to public information, CasperLabs is a public chain that focuses on Layer 1 expansion solutions. Its main network will be launched in the first quarter of this year. In October last year, it completed a $14 million private token sale. Below, Chain Catcher introduces the project in detail from CasperLabs’ expansion plan, tokens and Staking economic model.


Public chain expansion and CasperLabs’ solution

The public chain has always been facing the problem of expansion. The traditional solution is to choose to centralize the collection of validators, but this often sacrifices decentralization and security; or adopts a fragmented design, but in multiple fragments In this case, it is difficult for you to judge whether the first transaction has been completed. In this case, you cannot continue subsequent transactions. This is actually a problem in the security of shards. And at different time periods, transaction fees will suddenly increase due to network congestion. It is the uncertainty of transaction fees that makes it difficult for companies to use blockchain in their daily business.

Therefore, companies tend to choose the design of alliance chain. In the field of cloud computing, the average cost of Amazon Cloud AWS has decreased due to the continuous increase in its adoption rate. In eight years, the price of AWS has dropped by 97%. Take advantage of the benefits of economies of scale. But in the design of gas fees such as Ethereum, when the storage and transaction volume increase, the price of ETH will also increase, which means that transaction costs are also rising.

Therefore, if Ethereum is to truly expand on a large scale, it still has to solve the problem of expansion. Expansion means that more computing resources can be added to the system, otherwise there is no way to benefit from economies of scale. The Ethereum Foundation also discovered this problem at the very beginning and has been exploring this direction for many years. Therefore, the so-called scalability, security, and decentralization have become an impossible triangle on the public chain.

On this basis, CasperLabs is mainly to solve some of the problems that hinder the large-scale application of public chain technology, the most important of which is “sacrificing security for expansion.” Under the PoW algorithm, the entire network needs to reach a consensus on the past state before the next batch of state updates can be performed. There are indeed strict restrictions on the operation of the entire network, which limits the throughput and scalability of the entire network. But CasperLabs has a concept of virtual machine states “Past Cone” and “Future Cone”.

“Past Cone” represents some status that most nodes in the network have observed but not yet finalized, and “Future Cone” represents a status update that is being processed and being broadcast to the entire network. This means that multiple status updates can be broadcast across the entire network at the same time, and provide greater throughput and scale.

Because the CBC Casper used by CasperLabs is different from Ethereum’s PoS protocol, it will reach a consensus based on the “heaviest block” rather than the order of transactions, which allows sharding and synchronization.

The launch of the Ethereum beacon chain in December last year also marked the official transition of Ethereum from 1.0 to 2.0, but in fact, even Ethereum 2.0 is a mixture of PoW and PoS, not a pure PoS system. The Highway protocol designed by CasperLabs is different from the Casper FFG used by ETH 2.0 (it took a few years and gradually changed from PoW to PoS). It completely excludes PoW.

Because in PoW, 90-95% of the computing power is used to generate hashes (random numbers), the demand for hardware and energy is very high. In PoS, most processing power can be redirected to perform actual work, thereby improving the efficiency and speed of the underlying network.

If a public chain adopts the proof-of-work method, the block reward depends on the percentage of the computing power owned by the user to the computing power of the entire network, and it is relatively random, so many users will choose to link their computing power In a certain mining pool in order to obtain more stable income. In the proof of rights and interests, since the rewards are divided according to the rights and interests, users can know exactly the benefits they can obtain, which is more conducive to small verifiers to participate in network verification.

Highway supports fast and slow lines, corresponding to fast verifiers and slow verifiers. Verifiers can propose blocks at different time intervals according to their system performance and network connection speed. The activity is achieved by supporting leader nodes, dynamic rounds and The time window is implemented. If a node cannot send messages for two consecutive rounds, then the node will be considered to be under attack.

Staking economic model and governance

In terms of the number of validators, CasperLabs has 21 nodes participating, including some staking mining pools, such as: HashQuark , SNZ Pool , Stakefish , Acheron, RU Validators Club, The Arcadia Group, UABWebas.It, Morrestyn, LedgerLeap, DelightLabs, StratX, BlockBlox, and several other independent validators from the CasperLabs community.

All verifiers must pass a KYC/AML (identity authentication/anti-money laundering) check performed by a third-party service provider. The verifier needs to run the software and bind to the Devnet testnet, and provide the infrastructure of the Testnet testnet. Verifiers can also entrust to Staking Pool/Exchange/Wallet, or run their own hardware. The hardware is recommended to use an 8-core server, 32-64gb of RAM and sufficient storage space.

And must be bound to the network for 90 days (specified binding period), each stake certificate can be rotated and unbound waiting time according to the agreement verifier (roughly equivalent to 1/13 per week, 90 days after the specified binding period) Within days) and achieve partial unbinding. Staking benefits include three aspects:

The initial reward is 15% of the annual revenue before the mainnet launch. For the Stkaing reward, the agreement sets the target to be the first year after the mainnet is launched after a total yield of 15% or more. Transaction fees will be distributed to validators on the network after the main network is launched, and the pledge and transfer fee rewards earned will be completely liquid.

Faults in the Highway protocol are easily detected. The penalty mechanism is that if a validator proposes two different blocks at a time, or uses multiple parent blocks as the reason for the block, the validator’s pledge will be reduced. The influence will be weakened, so the normal operation of the node will also get greater returns.


In terms of specific token distribution, the team holds 8% of the tokens and unlocks them in batches three years after the mainnet launch. CasperLabs owns 10% of the tokens. Developers and DAO ecology account for 16%, and the rest Most departments have given validators, and the initial circulation is about 20% in the first year of the mainnet launch.

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