How will zone anchors be rewarded when the mining reward supply becomes depleted?


35% of the supply is for the mining rewards to Zone anchors ; this portion of the supply can only ever be obtained by contributing work to the FOAM network in Dynamic Proof of Location.

Question: What will happen when this reserve will become depleted? How will the protocol be able to reward miners after that? Is such a reward required at all? If so, what will be the solution?

Also, what is the expected duration for this reserve to run out of tokens once the system is live? Will it be decades, years, months?


The FOAM whitepaper discusses some of this:

Zone Anchors and Zone Authorities are rewarded FOAM Token block rewards for setting up and maintaining Zones. This provides Zone Anchors and Zone Authorities with revenue in addition to any transaction fees they might be paid for validating location claims. pg. 20

Prior to the initiation of mining, participants will signal where location services are needed, and in doing so increase the eventual block reward of that location. This incentive mechanism is to coordinate contributors, in a grass roots fashion, to operating the protocol. pg. 20

Numbers are not published that I am aware of. I would expect it would be similar to Bitcoin’s Block reward that is dynamic and provides incentives where there is a lack of participation.

Properly this is a Governance question for the community, and we should expect that there may be an initially high reward that is dynamically adjusted overtime.

The ultimate goal is to bootstrap the dPOL hardware deployment so that applications and users can begin interacting.

Long term, fees for performing the dPOL:

In return for a Zone operator providing this service, they may receive a fee from customers who wish to verify their location through the protocol. The denomination of this fee would depend on the preference of the Zone. Proof of Location can therefore provide consensus on whether an event or agent is verifiably at a certain point in time and space producing a digital authentication certificate that is fraud proof, called a Presence Claim. pg. 16

The issuance of Presence Claims for requests may be dynamic as well with something like GAS in Ethereum being used to dynamically rank the pending request for claims to assure priority. You’ll always be able to get a Claim issued, it just may cost more than normal. This would also allow for the possibility of off-hours certification of POI via Autonomous vehicles such as cars or drones for nominal fees as the local network would be quiet.

Long Long term, the established network, will be using commodity hardware, and operating costs should be well understood. At that point Zone Anchors should be able to sustain operations on fees alone.

The Technical White Paper provides some more details:

The block reward serves to bootstrap network growth and maximize Zone coverage. The block reward is higher on the edge of Zones than near dense nodes on the graph, encouraging additional nodes to join on the edge for the highest reward. Annual inflation is set at a decreasing and inverse rate in relation to the global coverage of Zones. The specifics of these rates will be discussed in a future paper. pg. 22

In a highly populated Zone, incoming messages will be prioritized by by the fee a customer is willing to pay. The location customer will have to pay the market rate and a Zone will determine what to accept and what not to accept. These payments serve as transaction fees and Zone specific payment channels can and will open up for regular customers that consume a high amount of Presence Claims. These fees are decided by market participants and can potentially be paid in any token. This fee will go to the Zone Authorities and Verifiers. pg. 23


Great answer, thanks!