Allocation and Block Rewards
Doge Protocol will secure the world’s largest three blockchains from quantum computers by multi-forking Bitcoin, Ethereum, Dogecoin blockchains and DogeP tokens. As part of this, the coin allocation will be as described in the allocation whitepaper.
40% of the coins will be allocated for network enablers. Network enablers are validators, data availability providers and other roles that are required to keep the blockchain running. Similar to Bitcoin halvening, the number of coins for network enablers will halven roughly every 4 years. Thus, out of 40% of coins (which is 40 trillion), the first four years will be allocated 20% (20 trillion coins), 10% the next four years after that, 5% the next four years after that and so on.
With a block time of 6 seconds, this will translate into roughly 21024000 blocks over the first four years. Thus, for each block, this translates into (20 trillion / 21024000) = 951293 coins as rewards. The next four years, this will halven to 475646, then to 237823 and so on.
Note that while 6 seconds is the attempted block time per block, the actual block time can be much higer depending on various factors including speed and availability of the network and internet connectivity. Each time transaction and block speed changes are made to the blockchain node client, the rewards per block will be re-adjusted so that roughly, the block rewards are halvened every 4 years. For example, if instead of 6 seconds, if the block time achieved is 24 seconds instead, then the rewards per block will be multipled by 4. Note that this is not dynamically calculated, but will be made as part of blockchain node client updated as part of community run development.
In the first release of the blockchain node client, validators are the only network enablers. Validators run the blockchain node client and enable creation of blocks. For each block, there will be a block proposer selected using a deterministic algorithm based on the consensus algorithm. If the block is created successfully, the validator who was the block proposer for that block will get all these rewards for that block. In subsequent blockchain node client updates, the data availability provider and other roles may be added as well. At that time, these rewards will be split among these various roles. This is a future aspirational goal and would be a community selected decision.
The more the number of coins staked, the higher the chance of being selected as a validator by the consensus algorithm and hence higher the chance of becoming a block proposer. Note that just staking coins alone does not give any block rewards. Only running a validator node will make the account eligible to get block rewards.
Thus, in the block rewards which will be enabled from a block that roughly coincides with April 14th, 2024, World Quantum Day, each block will be allocated a reward of 951293 coins that goes to the validator who proposed the block. If the block time is found to be more than 6 seconds in the months leading upto April, the block rewards will be increased proportionately in a node client software update that validators should uptake.