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Cryptomining: Callisto Network introduces the Dynamic Gas Price

Cryptomining: Callisto Network introduces the Dynamic Gas Price

Cryptominers Matter

Callisto Network is a blockchain-based on the Proof-of-work algorithm, i.e. cryptominers validate transactions by providing the network with dedicated equipment, in compensation of which they receive a reward.  

Because they ensure the security of the network, it is essential for Callisto Network to maintain a fair level of profitability for CLO mining.

The new monetary policy, the first step

On June 20, 2019, we implemented the new monetary policy, which is designed to ensure Callisto’s long term sustainability by reducing the inflation rate of CLO without changing its max cap.

This is a three-phase policy, each phase reducing the block reward as detailed below:

Reduction stage:

From block 2 750 001 (est. 01.06.2019), we will reduce 4 times the block reward by 40% (every 1 500 000 blocks ~250 days). Then reduce it by 35% to 50.54 CLO by 2022. At each reduction of the block reward, the reward of the miners will be reduced by 5% and that of the Cold Staking increased by 5%.

Main stage:

During this phase, the block reward will remain the same.

Final stage:

Reduce block reward by 2% each 500,000 blocks starting at 55,250,001 block (est. 2040 year).

However, this measure could have a perverse effect, as the reduction of the block reward is likely to lead to a temporary decline of the CLO mining profitability.

Callisto Network introduces the Dynamic Gas Price feature

This is where Callisto Network‘s new feature, the dynamic gas price, comes in. By applying a dynamic gas price, Callisto Network intends to ensure constant rewards to miners while maintaining its ability to provide safe and cost-effective transactions to users at any stage of its development.

Currently, the gas cost is fixed at 1 gwei, whatever the CLO price. With the Dynamic Gas Price mechanism, the gas cost will be adjusted from 5,000 to 21 gwei, depending on the CLO rate, thus giving miners the incentive to maintain their equipment on the network.

Below is a table detailing the calculation method of gas cost based on the CLO price.

We are planning to implement this measure in two stages:

  1. From the 20th January, the Callisto Web Wallet will operate according to the new gas price schema and miners will have to accept a minimum of 21 satoshis per transaction (every wallet should set this amount of gas).
  2. On February 20th, 00:00 UTC, all miners, mining pools, stock exchanges, and wallets should be working with 5,000 Gwei per transaction as a fee.

For the second Callisto’s hard fork of this year (2020), we will introduce the change to the Callisto client, getting the gas price dynamically from a smart contract. Every 10 minutes, a smart contract will receive an update of the price, and based on that price, the smart contract will return a suitable gas price to different clients.

If you are cryptominer:

Set the parameter `–miner.gasprice 21000000000 –txpool.pricelimit=21000000000` (from January 15th).

And `–miner.gasprice 5000000000000 –txpool.pricelimit=5000000000000` (from February 15th)

If you are wallet, exchange or any node working with transactions you could use the public RPC node to get the average of gas price in the latest blocks to set it automatically:

curl –location –request POST ‘https://clo-geth.0xinfra.com’ \

–header ‘Content-Type: application/json’ \

–data-raw ‘{“jsonrpc”:”2.0″,”method”:”eth_gasPrice”,”params”:[],”id”:67} ‘

We recommend to set the gas limit to: 5,000,000 (for now it’s enough)

--miner.gastarget "5000000"

We’re contacting exchange and wallets to deploy these changes, and some exchanges are starting to work with 21 Gwei per transaction before publishing this article.

Since a few days ago bootnodes are not queuing transactions with gas price below to 21 Gwei.

And after 15th February will not queuing transactions with gas price below to 5,000 Gwei.

Read the detailed description of the Dynamic Gas Price feature on our Github:

🔗 https://github.com/EthereumCommonwealth/Roadmap/issues/61

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