Produced by Odaily
Author | Wang Ye
Editor | Lu Xiaoming
Produced by Odaily
Author | Wang Ye
At 18:00 on June 18th, Beijing time, that is tonight, Algorand will start the first round of Dutch auctions. At that time, the Algorand mainnet will be launched simultaneously.
The following is the community Q&A session:
During this period of time, there have been many explanatory articles about Algorand’s Dutch auction circulating on the Internet. I believe that many readers still have a little understanding after reading it. In addition, some WeChat communities have appeared many proxy investment agencies claiming to cooperate with the government. Are these proxy investment agencies credible?
On June 17, Odaily invited Ms. Chen Jing, the chief scientist of Algorand, to visit the Odaily Chaohua community to explain Algorand’s Dutch auction rules, the incentive mechanism for mainnet launch, the refund principle of Dutch auctions, and the latest technological progress of Algorand. Special partner Wang Chao served as the host of the community Q&A live broadcast.The following is the community Q&A session:
Chao Wang: First of all, the first question is why did the Algorand team choose the Dutch auction method?
Chen Jing:https://algorand.foundation/algo-auctions
Dutch auction is a very classic auction method. The main reasons for the Algorand Foundation to choose the Dutch auction are as follows: First, the core of the Algorand network and borderless economy is fairness. Dutch auctions allow the market to determine a fair price for tokens, rather than any specific entity setting the price.
At the same time, in the Dutch auction, the price of tokens obtained by all participants is the same, and all participants are treated fairly. And the Dutch auction is very convenient for users to participate remotely. Users do not need to be online all the time during Foundation auctions. Users can bid and go offline, and then also come back online and continue bidding.For details about the auction, you can refer to:
Chao Wang: After the first round of Dutch auctions, is there any plan to list on the exchange?
Chen Jing:some. Algorand Foundation has received support from several top exchanges, and the online exchange will be announced after June 20.
Wang Chao: Regarding the price, it is rumored in the market that the private placement price of Algorand is 0.05 USD, while the starting price of the Dutch auction is 10 USD, which is a full 200 times. Some investors think the starting price is too high. What do you think? Why is the starting bid set at $10?
Chen Jing:
The starting price of a Dutch auction is not the same as the final price. The auction set a starting price of 10 USD, a minimum price (reserve price) of 0.1 USD, and the entire auction will last for 4,000 blocks, about 5 hours.
During this process, the user's bid will be placed on the blockchain. As mentioned earlier, the final price of the auction is determined by the user's bid, not by the starting price and reserve price set by the auction itself.There will be a total of 25million Algos in this auction. In addition, you may have seen from the Foundation website and the Algorand Chinese community that the Foundation provides a one-year refund policy for the auctioned Algos, up to 90% of the final price.
Chao Wang: For Chinese investors, the conditions for participating in Dutch auctions are very strict. Can Chinese investors directly participate in Dutch auctions? In addition to the Dutch auction, what other channels can participate in the investment of Algo?https://tracker.algo.capitalChen Jing:
The following countries and regions cannot participate in the auction: United States of America and its territories, Canada, Democratic People's Republic of Korea, Cuba, Syria, Iran, Sudan, Republic of Crimea, People's Republic of China, and jurisdictions in which the auctions and /or trading of the tokens themselves are prohibited, restricted or unauthorized in any form or manner whether in full or in part under the laws, regulatory requirements or rules in such jurisdiction.
But it is possible to participate in the Algorand ecosystem in other ways:
. For example, Algo Tracker Fund, the above is their URL and email address.The proxy investment channels of other platforms are not official channels, and Algorand cannot guarantee their safety and reliability. Please be careful to judge the risks by yourself. Currently the only way to obtain Algo is through the Foundation's auction on June 19.
Wang Chao: According to the rules of the Dutch auction, the price of the token is determined by the last investor who participates, and the cost price of the investor is the same. So what is the difference between the early auction and the late auction?
Chen Jing:In a Dutch auction, if two users bid differently, the bid of the participant with the higher bid is processed first. In the case of the same bid, it is a first-come-first-served basis until the total amount of tokens is sold out. So if the auction doesn't end after both bids, then there's no difference, if the auction ends between early and late users, the latter won't be processed.
Wang Chao: "Bid in advance before the auction starts". If the participant who has confirmed the highest bid in his mind can bid in advance, what are the benefits of bidding in advance for investors?
Chen Jing:Bidding before the auction starts is designed to accommodate users in different time zones who don't need to wait strictly until the auction starts. At the same time, as mentioned above, the Dutch auction is first-come-first-served when two users bid the same, and the bid of the first auctioned user will be processed first.
Chao Wang: Is there an investment limit for individual investors?
Chen Jing:No
Chao Wang: Will investors be required to lock up positions after the auction? Are investors free to trade?
Chen Jing:No requirement, free to trade.
Chao Wang: Through continuous Dutch auctions, the Algorand Foundation is expected to obtain a considerable amount of funds. Is there any specific use plan for this fund?
Chen Jing:Funds from the foundation will first be used to ensure the implementation of the refund policy, and the rest of the funds will be used to develop technology, further develop the platform, provide developers with new tools, support the development of the community, and so on. Continue to improve the main network according to the Algorand Network roadmap. In short, the purpose of the Foundation is to support the development of the Algorand network and community for a long time.
Chao Wang: In addition to the upcoming Dutch auction, other issues that community users care about are mostly related to the incentives on the chain and the future development plan of the mainnet. So what incentives can investors get after the mainnet goes live?
Chen Jing:At the beginning of the launch of the Algorand mainnet, priority will be given to expanding the number of users, so the initial reward mechanism is to distribute all tokens in proportion. In subsequent development, Foundation will gradually add other incentive mechanisms, such as relay. You can also see from the Foundation's website that the Foundation has reserved a large part of Algos as a reward mechanism.
Chao Wang: The next question is also related to mainnet rewards, and most of them have been answered in the previous question. So will the completely fair reward mechanism at the beginning of the mainnet launch cause insufficient enthusiasm for participating in the consensus in the network? When is the new incentive mechanism expected to start?
Chen Jing:As mentioned earlier, at the beginning of its launch, Foundation hopes to bring more users into the ecosystem, so the reward mechanism is proportional to the amount of tokens. In the early days, many enthusiastic technicians and developers have joined the consensus mechanism. The important thing is that the cost of participating in the Algorand consensus agreement is very small, and many ordinary users can easily participate without buying special equipment like mining. More incentive mechanisms, such as the relay mentioned just now, will be in It will be added in subsequent versions.
Chao Wang: Where is the biggest difficulty in Algorand's consensus mechanism? How did the scientific team solve this problem?
Chen Jing:
It is not easy to design a consensus mechanism that is scalable, secure, and decentralized at the same time.
Algorand's consensus protocol selects participants for each step through the Pure Proof of Stake method. This solution does not require users to lock their stake for a long time, nor does it need to entrust a small number of users to participate. The voting power of each user at each step is proportional to the number of tokens, which not only ensures fairness but also ensures the decentralization of the system.
The realization of security is based on a secret self-selection mechanism, the attacker cannot know the participants of each step in advance, and cannot launch a purposeful attack in advance. At the same time, Algorand's innovative Byzantine agreement can support the operation of reselecting participants at each step, which makes it impossible for attackers to better predict the participants in the next step after seeing the participants in the previous step, further ensuring Safety.At the same time, Algorand's Byzantine agreement is very efficient, and the secret self-selection method greatly reduces the number of participants, and the participants do not need to communicate with each other to find out who is selected. This is the calculation amount and network communication amount of the entire system. Has high scalability.
Wang Chao: Then after the mainnet goes online, how much TPS can it get, and what kind of commercial applications can it support? In the future roadmap, will the TPS of the main network be further improved, or will it focus on maintaining the stability of the main network and expanding the L2 network?
Chen Jing:
A lot of tests have been done in the testnet stage. In the case of 10,000 globally distributed participants, it can stably reach more than 1000 TPS, with a delay of about 5 seconds.In addition, this is the most distributed and decentralized situation possible under the condition that all participants distribute the tokens equally. This situation will be more difficult than the real currency holding situation after the mainnet goes online. The PoS protocol is the most difficult scenario. We deliberately set high standards in the performance test, so that everyone has higher confidence in the scalability and timeliness of the mainnet after it goes live.
Chao Wang: What are the parts of Algorand's smart contract roadmap? When will it start to support issuing tokens on the Algorand chain?"automic swap"。
Chen Jing:
Algorand’s test network already supports multi-sig, multi-sig, as mentioned in our roadmap, we will first support automatic swap that can be completed by a single transaction, and those that need to use various lock structures and need to be completed in multiple steps Operation is different, no special locking is required here.
Most of the automatic swaps implemented on other blockchains have long delays and time locks to prevent 51% attacks. Algorand's blockchain will not fork, so it has immediate finality, which can realize true Automic in the simplest wayNext, our smart contract will be divided into multiple iterations to gradually expand the supported logic set. This roadmap takes both performance and security into consideration in the design, and also absorbs a lot of experience and lessons from the design of existing smart contract platforms to ensure its ease of use and security.https://bugcrowd.com/algorand 。
Chao Wang: Does the Algorand Foundation have an ecological incentive and guidance plan for the community and developers, such as Bounty program or developer competition, hackathon and so on?
Chen Jing:
As the Algorand code base was open-sourced on June 12, the Bug bounty program also started:
At present, hackathons have been held in many places, and the Algorand Community Ambassador Program has also attracted many enthusiastic participants. Next, the foundation will further strengthen the community and developer ecological construction, and expand the hackathon to more cities. From offline to online, the scale will be further expanded. The community for developers has been under construction. You can also see more information from developer.algorand.org and the above forums. With the launch of the mainnet, there will be many community-oriented activities and participation methods. Welcome everyone Follow our homepage and the latest developments in the Chinese community.
Chao Wang: Very exciting. All the questions collected from the community in this AMA have been answered in advance. During this period, we saw that friends in the live broadcast room and in multiple communities have also raised many questions. Since the time has exceeded a lot, we will next Select a few representative questions that users are most concerned about and ask guests to answer them.Chao Wang:
First of all, the first question is, if the tokens obtained by users in the auction are sold halfway and then bought back from the secondary market later, can they still enjoy the refund policy.
Chen Jing:still enjoy.
Chao Wang: Is there a limit on the number of relay nodes? What are the requirements for applicants?
Chen Jing:There is no limit to the number of applicants and no requirements for applicants.
