On May 12, 2021, Dr Zs and Vladimir Vencalek answered questions from the community about Callisto Monetary Policy, Cold Staking , and Soy.Finance.
Admin: Hey Callistonians! Are you ready for the AMA?
Lets go!
Admin: Ladies and gentlemen, AMA with Dr ZS, the Architect of Callisto’s monetary policy, and Vladimir Vencalek, Callisto’s CEO START NOW ?
Please be respectful, give our guests the time to respond, also do not repeat questions. Thank you ?
Callistonians, I have received many questions from our local communities so I will address these questions on their behalf ?
@Dr_ZS: Hello everyone! I am happy to be here and discuss Callisto Monetary Policy!
@cRepas V: We are ready to get going , we will start with monetary policy questions first and have the other questions at the end of AMA ?
So many Blockchain networks are coming into the Crypto world. Many of them have better performance in terms of transportation speed and transaction fees. So, Ethereum is going to have its second upgrade network ETH 2.0. So even if Soy Finance comes and monetary policy is good, if the network performance is getting far behind in this Crypto world, Callisto may not survive. Do you have any plans to upgrade the network like ETH 2.0?
@Dr_ZS: To improve the network’s performance, more and more projects research Layer 2 solutions. However, all these are based on Layer 1, which is characterized by small throughput (TPS compared to layer 2) but higher security. To address the high number of anticipated transactions (ticketing project and more projects that are under NDA), we plan to make use of “Master Nodes” or “Hyper Nodes”.
These nodes will validate transactions offline and then use the Callisto Blockchain to validate and secure them in a distributed and secure manner. We believe that this is the best solution that addresses the challenges that enterprises are facing offering them Blockchain as a Service product taking advantage of the new entity Callisto Enterprise for which an airdrop will be performed soon (next month), and the CLOE token will be airdropped to the users who will use the new Cold Staking contract (V2).
With full implementation of “Master Nodes” or “Hyper Nodes,” what will be the estimated transactions per second( TPS) on the Callisto network. I saw an article that the current Ethereum network could handle up to 3000 TPS.
@Dr_ZS: We will follow an adaptive approach regarding the block size as it is stated in the published MP, and we can meet for sure and surpass if needed ETH tps.
@cRepas V: There are also Layer 1 updates that will help with TPS that we are investigating, and already we are working with developers to see how it will increase the TPS and help Callisto as a blockchain.
Will be CLOE listed on any exchanges?
@cRepas V: Can be in future.
Is there any new info regarding the abolition of the limit on orders on the bitfinex exchange (now is max 50k CLO per order)?
@cRepas V: We are discussing with Bitfinex and are working to remove the limit and much more.
What is the stability mechanism?
@Dr_ZS: I would argue that the Stability mechanism will be one of the most important novelties in the blockchain space. I strongly believe that many existing projects will face the challenges that the mechanism tries to solve sooner or later. In any case, the proposed MP is dynamic, which means that it can adapt to the current state of the network. But there may be cases where a “bad” actor can manipulate a distributed system to take advantage of it.
For example, it could lead to very high deflation to gain the advantage of the increased CS reward. To avoid such extremes, a mechanism will be implemented to avoid such extreme phenomena and described in detail in a future publication.
How to consider improving our Callisto currency in the years to come?
@Dr_ZS: By bringing more and more real projects in our ecosystem will add value for sure. Through the proposed MP holders will be benefited by deflation and the increase in CLO’s value through utilization.
Callisto enterprises is developing NFT. NFT is using erc 1056 protocol. Is NFT made in callisto can be converted in Ehthereum network NFT ? If So, we can absolve so many NFT users to Callisto Network.
@cRepas V: Our current focus is to have an NFT market on CLO, and after that focus on a bridge to other chains, we are investigating what chains will bring biggest benefit to connect and be compatible. Now we are 100 percent compatible with ETH, and ETC. I can also say that we are working on CLO NFT mobile game and have received funding for that (500k USD) to bring NFT content to CLO. The company will be under Callisto Enterprise and will be focusing on Game-blockchain dev.
How do you think how long time it can take to implement the MP fully?
@Dr_ZS: The proposed MP will be implemented in the next 6-12 months as a HF is required. However the already implemented block reward reduction of 40% is the first step of the proposed MP and therefore the first step of the proposed MP is already implemented! The burning mechanism will be deployed with the expected increase in the number of transactions.
Binance on schedule?
@cRepas V: We cant answer questions that are related to topics under NDA
Is there any progress with ICT?
@cRepas V: We moved a little bit timeline of the project as mass transportation was hit by covid a lot, but its still on, we just changed the timeline and moved it 1-2Q.
How do you think how long time it can take to fully implement the MP?
@Dr_ZS: The proposed MP will be implemented in the next 6-12 months as an HF is required. However, the already implemented block reward reduction of 40% is the first step of the proposed MP, and therefore the first step of the proposed MP is already implemented! The burning mechanism will be deployed with the expected increase in the number of transactions. As the projects which make use of the CLO network increase, we will implement the burning mechanism and afterward the stability mechanism when deflation is reached.
Hello, when will we have marketing? how do you plan to attract investors?
@cRepas V: We currently are working on expanding the team and already hired marketing help, and we are testing channels we want to use to expand our reach. We have great ideas on how to boost our community growth and will be shared with the community soon.
As I understood, When we launch Dapps on Callisto Chain, except Network fee (CLO) for miners, we also collect Transaction fee (CLOE – 0.3% from off-chain fee)? Can you explain more about the purpose of using this fee?
@cRepas V: Fees are for enterprise users (Not to for blockchain users) and will be used to fund the ecosystem. For an enterprise user, 0,3 percent is really low as they pay now 1-2 percent.
Can we have more information on the Masternode?
@cRepas V: We are still working on the best Masternodes approach. So right now, we are in the design phase. After its completion, we will share it with the community and ask for feedback.
Can the proposed MP lead to a high inflation rate?
@Dr_ZS: No, this is not possible! The proposed MP is based on a static block reward which decreases with time. This means that even if the network remains unused, the inflation will decrease with time. The highest inflation rate is with the current block reward of 6% and will decrease forever. Even no transactions are performed.
What is the main advantage of the proposed MP?
@Dr_ZS: Haha, I cannot select only one advantage. The proposed MP introduces many innovations!
If I had to pick just one, I would say that the most important novelty is the ADAPTABILITY to the current network state towards long-term stability. For this reason, we used the term “Dynamic” in the description of the MP.
This means that the fixed blocked reward policy offers the required incentives to miners to continue supporting the project and its network security while the network utilization is low. On the other hand, the burning mechanism would mirror network utilization, adapt the coin issuance rate to the current network utilization, and give miners an incentive to continue securing the network operation, independent of the existing network state. Hence, through such a mechanism, it is expected that the value of the coin will increase to depict the increase in the block utilization.
When other exchanges??
@cRepas V: We are hiring a consultant to increase speed in this area.
If you decide to list CLO on Binance – are there any objectives that must be completed?
Or you just ask Binance for listing, and they do it?
@cRepas V: We can’t answer questions that are related to topics under NDA.
Will all Defi projects launch on the Callisto chain be audited by Callisto team or not (only audit for paid projects)?
@cRepas V: Yes, we have best security experts in the blockchain.
How much TPS do you expect to have in the clo network? Did you do some performance tests? Maybe in testnet?
@Dr_ZS: We can’t share exact numbers right now. However, have in mind that DeFI (SOY FINANCE) will be brought, Master Nodes also, and many enterprise-related projects that will bring REAL transactions.
Due to the reward reduction for miners and the price drop of CLO, CLO network hash rate was significantly reduced. I like the new MP that guarantees more rewards for Miners. And so much of hashing power is concentrated on 2miners pool.
What are the major disadvantages for the network when the hash rate is very low.
@cRepas V: We are working on attracting miners and also, changes in monetary policy will help us do just that, but the effect of changes will not be visible in a few days. I personally think it will start to be visible in few months.
What is the expected Cold Staking APR (ROI)?
@Dr_ZS: I think that this is a question that everyone is interested in! We have taken great care of the CS reward during the Monetary Policy as CS is a core application of Callisto Network. Due to the block reward reduction, the coins that are allocated to the CS contract are decreased. The targeted CS APR is 5%-6%. Note that we plan to introduce Master Nodes, requiring to lock a certain amount of money to validate transactions.
Thus the total coins that will be locked in the CS contract will be decreased, increasing at the same time the CS APR. Moreover, CS is the mechanism that is expected to be highly benefited from the burning mechanism and the reduction in the total number of coins in circulation. This happens because the CS coins are distributed to the number of coins locked in the CS contract. As a result for the same number of coins distributed from the CS contract, the APR increases as the number of coins locked in the contract decreases.
Is Callisto build as a fork of ETH classic or something like that?
@Dr_ZS: Yes, it’s a smart contract ETC-based network.
@cRepas V: Callisto was created by one of the best dev teams of Ethereum Classic – Ethereum Commonwealth
But it has its own blockchain. It is Layer 1 solution, yes?
@Dr_ZS: Exactly, it is Layer 1 solution!
When Soy will launch? Are there any new features of Soy different than all current swap and yield farming Dapps? Is there any SOY token that will be airdrop for CLO and/or CLOE holders?
@cRepas V: Soy is right now in internal testing. We expect to be ready soon; I can’t say the exact day. Regarding how different it will be – I think they are many features that must remain the same or similar to an already existing project. We will have some unique features. Yes, there will be SOY token airdrop, mainly for early liquidity providers. (So, I recommend using SOY ASAP…
How many coins will be need to start MN?
@Dr_ZS: The exact number will be published soon with the Master Nodes documentation. However, our calculations are based on giving incentives and supporting both the CS and MN. Expect that the MN rewards will be higher compared to CS.
My question is, @cReepass, if you had to convince someone to invest in the project in a few words, what could you say to them?
@cRepas V: We have an excellent Core Team of senior experience people, we have a great team of ambassadors, we have great admins and mainly a great community. Our project has a great possibility to grow many times. And we also work on many internal projects that will make the CLO ecosystem stronger.
What kind of institutions you are building Callisto for?
@cRepas V: We are focusing on onboard enterprise customers and be able to be Layer 1 solution that will meet their demands and needs. For that, we have great features that we will propose soon. Also, Callisto Enterprise can help the enterprises to get on Layer 1. For a fee of course ?
What is the total coin supply?
@Dr_ZS: The total coin supply will be closely related to the network utilization. Due to the block reward, the total number of coins will increase initially.
However, with the introduction of the burning mechanism and selecting the appropriate value of the related parameters (block size, transaction cost), deflation will be reached, decreasing the total number of coins to 3 Billion. After that point, it will be almost stable forever.
So to answer your question, the total coin supply will be 3 Billion coins. Until that point, the total coins in circulation will surpass this number before reaching the 3 Billion forever. Hence, at the current state, the CLO value is to be used as a store of value. Investors who buy CLO and plan to store it will expect to gain an advantage of the increased network utilization and the reduction in the total number of coins in circulation.
At the moment, ETH chain fee is so high, many “Quadrillion tokens congest BSC”, this is our chance. So, launch Defi ASAP. But what would we do with the Callisto chain to avoid those problems? And would we have any marketing strategy to take these advantages?
Wish all team health, happiness and success.
@cRepas V: Great question. We see it as our opportunity and believe we would be able to compete with ETH because of speed and the fees. Also, it is easy for projects to move to us. Monetary policy is solving big fees. Regarding speed, we are working on it. Regarding marketing – yes, we are preparing a marketing strategy, but now we focus on finishing the projects to promote them.
I have a suggestion that you only airdrop SOY tokens to those who hold CLOE tokens. At that time, the value of CLOE token will grow strongly ^^
@cRepas V: There are SOY and CLOE tokens ideas we are working on implementing. As soon as we are 100 percent sure it’s technically possible, we will announce it.
According to the new dynamic MP, more than 20 CLO will start to be burned 50 years later with the assumption of block utilization of 80%, at the same time, the block reward will be 20 CLO. I don’t understand how this can be achieved.
@Dr_ZS: The graph you posted presents some simulations. We definitely cannot forecast the number of transactions and who will use the Callisto Blockchain. As hardware changes, bigger blocks will also be supported, and deflation can come much sooner, and block utilization can vary. Deflation that will decrease the total number of coins will come for sure in the near future.
Note also that we are currently working. We will propose some IMPORTANT changes in layer 1 to solve the problem of high latency in transactions that ETH faces right now and will also be used as an extension to the burning mechanism. So, no worries, DEFLATION will be a reality sooner than the projected one in the graph you posted.
When you plan to run SOY?
@cRepas V: It is now internally tested. Also! We hired FARMING professionals to give us advice on how to boost soy even more.
Okay. But when you plan? Year? 2? 3?
@cRepas V: Few weeks.
What is the targeted block utilization?
@Dr_ZS: On our projections performed in the MP document, the targeted one is 80%. However, we follow an adaptive block size approach to improve scalability in the future, and this number can vary.
Will miners be affected from such a proposal? (burning mechanism)
@Dr_ZS: CLO is a Proof of Work-based network. So, we don’t plan to affect miners negatively but a POSITIVE one.
With time Miners will get rewarded with fewer coins. On the other hand, the value of these coins will be higher due to the lower inflation (deflation).
Hence, it is expected that the burning mechanism will have a positive impact on miner’s rewards.
Miners can further increase the number of coins using the Cold Staking and get rewarded by the new burning mechanisms that will be implemented.
@cRepas V: I can share with you news, we will announcing a Security token offering next week for 15 M USD. Lawyers confirmed it’s almost ready to start presale. We will share with you many more details next week. It will be followed by 3 M STO. The first STO will be from Invictus Group company. The second one will be from a big Czech company that wants to publish it first on their social networks, so we can’t say now.
We already have a working prototype of the game for android ? , but it is looking ugly as the artists are joining. It will take them some time to produce the art part. And regarding card game, can share this. Also, we are hiring the best artists from japan, china, and other countries to help us with the game’s art.
Admin: Thank you for attending this AMA Callistonians, unfortunately, time is over. Thank you @Dr_ZS and @cRepas V for your time!
@cRepas V: Thank you guys! Looking forward for next AMA!
@Dr_ZS: Thank you all for the great questions! I am happy to be here!!
Admin: Thanks to our local communities, admins and ambassadors for their help in preparing this AMA ?
Appendix
Previous Ask Me Anything sessions with Callisto team:
Yohan Graterol’s Ask Me Anything on 23/12/2020.
Yohan Graterol’s Ask Me Anything on 02/12/2020.
Miscellaneous
Passive Income with Crypto: Coinomi.
Trust the Blockchain, Audit the Smart Contracts.
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