The vote on the Giant Coin (GIC) block reward structure has become a number one topic in the Giant community during the recent days, and it would be good for a Giant supporter to have this material in order to have a full picture of the event.
The governance mechanism of Giant makes the decentralization of our system practically-applied and viable — potentially, it can outlive the Giant founders. We have already outlined the basic principles of Giant governance in an older material. Let’s see what information may help you understand the current situation better.
The funding of the Giant blockchain improvement proposals via masternodes voting will soon become fully activated. The current vote itself, in fact, has been initiated by the Giant team simultaneously with our efforts to finally activate this governance mechanism. This will allow us to introduce two major changes with only one mandatory wallet update!
One of the most notable components of the upcoming Giant governance mechanism is superblock - this chunk of the blockchain is found at the end of every month. All transactions written in this data block are transfers to the wallets of the initiative developers who propose a certain change in the Giant economic system or offer market partnership. The superblock budget is called Treasury. Sometimes it can be called the Governance Fee since the budget is allocated from each block reward.
The regular block reward structure itself is a tricky subject. At the time of writing, each new Giant block reward is distributed to masternodes and PoS miners (or, as we call them, stakers). The masternode reward is 16 GIC, while the stake reward is 4 GIC. The latter affects the attractiveness of PoS mining which has to ensure the network decentralization.There were several incentives to balance the rewards in order to increase the so-called staking pool. However, the decision is to be made by the Giant Community.
And here we move to the main reason of the confusion of some community participants today. Due to the fact that the governance mechanism of Giant is still not active, the block reward voting has been made a little bit more difficult than all other future votes which will revolve around the aforementioned mechanism. The two-step voting scheme will have Giant masternode owners as main actors, although each Giant community participant can provide their own block reward distribution variant. Let’s see how the process goes:
The reward distribution variants for all steps of the voting will always be available on our Discord and on this Google Doc table. The vote process will be public at all times, meaning you will be able to track the vote percentage change.
The initial Discord vote will start 15 January after the end of the new proposals review. Note that we would not accept propositions which resemble other already-included variants too much. Your proposal can be sent to Giant_admin_en#5252 and to firstname.lastname@example.org.
We hope that this description of the vote has clarified the reasons behind our intention to hold it right now when the superblocks governance mechanism is not yet released. Of course, we could have delayed the reward change until it’s ready but who would appreciate the need to update the wallet client twice?