How is ICX issued and what is the future issuing plans?
The amount of newly issued ICX is an increment function of the growth rate in the ICON network activity. The activity level of the ICON network will be measured by the sum of IISS scores of individual participants. The purpose of taking into account the activity levels in determining quantity of issue is to check ICX against volatility driven by spikes in demand. The parameters of the function are set so that the maximum rate of additional ICX issuances does not exceed 20%. In practice, the amount can be further adjusted within a 5%p range through the consensus among C-Reps. However, until the time point when reliable figures are presentable and meaningful consensus can be reached from the accumulation of IISS-related data and the increase in the number of C-Rep, the amount is scheduled to be at a fixed rate.
Are there transaction fees on the ICON network?
Even though the transaction fee is currently set to 0.01 ICX per transaction, it will be charged according to a fee structure that reflects the degree of complexity of each transaction. Elements such as the amount of transaction fee or the respective fee ratios of Full Nodes and Light Clients can be modified through consensus in Representation Channel. An optimal level of transaction fee will be proposed by AI analysis prior to the consensus so that C-Reps can take it into account during the consensus.
What is the role of C-Rep and what is the reward?
C-Rep refers to a singular or plural C-Node that represents a Community. C-Rep functions as a portal which connect a blockchain community to ICON network and has voting rights in Representation Channel. IISS, an AI-based assessment system, evaluates the participation level of C-Rep according to ICX exchange volume, DEX exchange volume, Freezing volume, DApp generation and usage, and smart contract exchange, and ICX incentives and voting right are allocated to C-Rep proportionately to IISS score.
How is the governance of ICON Republic operated after the launch of Mainnet?
Initially, various types of hyper-parameter modifications will be implemented to vitalize ICON communities. Once ICON communities are activated and internal operational data is accumulated, hyper-parameters will be altered based on the consensus of on-chain governance. Switch to on-chain governance will be decided upon consensus, when ICON Republic reaches an eligible size to make independent decisions with sufficient number of C-Rep.
How can I participate as a C-Rep in Nexus?
The minimum conditions for becoming a C-Rep and the total number will be defined for the efficient communication and discussion within ICON network. Certain community nodes that receive high IISS score in reference to the contribution at ICON network will be qualified to become C-Rep. The maximum total number of C-Rep can be adjusted through discussions on Representation Channel. In other words, the candidates who maintain the minimum requirement for a certain period of time are eligible to become a formal C-Rep through the consensus and voting of the existing C-Rep.
Can general participants in the network vote for C-Rep or receive compensations for participating in the network?
The general participants in ICON may expect transaction fee earnings from managing Light Clients and ICX Incentive allocated proportionate to IISS score. And the general participants can delegate their IISS score to the C-Rep they wish to support. Every participant can increase the voting right of the C-Rep by delegating its IISS score, so that each participant can contribute to extending the influence of corresponding C-Rep in Representation Channel.
Are there preparations in case of any wrong-doings by C-rep?
If one of the leader nodes in C-Rep propose an invalid block and if validator nodes vote for invalid blocks or vote against the rules, penalty will be implemented. ICON network requires block-generating nodes to deposit some amount of ICX in Reserve Pool and reward them according to the amount reserved. Malicious nodes are penalized by cancelling their reserved ICX, thus preventing moral hazard of Nothing at stake problems.
Which factors are evaluated through IISS?
Incentives at IISS are paid differentially according to each score of the nodes (I_score). Once the issuance policy is decided, additional annual issuance amount of ICX is also fixed and the incentives of additionally issued ICX are paid out according to the scores of each node for every 1,296,000 blocks (about every month). The criteria include ICX exchange volume, DEX exchange volume, DEX Freezing volume, DApp generation and usage, and smart contract exchange, and these criteria may change according to the accumulated data.
Where can the C-Rep and Citizen nodes utilize IISS?
First, C-Rep and Citizen Node will receive the additionally issued ICX and deferred ICX through IISS scores. Moreover, C-Rep is given the right to vote for policies within ICON Republic according to IISS scores. In the case of Citizen Node, they cannot themselves vote in Representation Channel, but they can delegate their IISS scores to the C-Rep, which will enhance the influence of the C-Rep within the Representation Channel.