Protecting Users’ Rewards: What to Expect After the Mainnet Launch
Chirp is dedicated to ensuring fair and sustained rewards for its users. By implementing several strategic measures, Chirp aims to optimize network coverage and maintain the value of user rewards.
What we have now?
Currently Blackbird miners earn rewards simply by staying online. That’s mean the Blackbird miner communicates only with Chirp backend for the proof of the coverage. So user just needs a stable WiFi or 5g connection to earn $CHIRP.
What will we implement after the mainnet launch?
Several months after the mainnet launch, we will gradually introduce additional conditions that will influence the reward distribution while maintaining the fundamental one: being rewarded with $CHIRP tokens while being connected to Chirp Network and providing coverage for IoT devices.
1) Extra rewards when your miner “communicates” with neighboring Blackbirds
Users will receive extra rewards when successful radio pings are exchanged between their miners. This incentivizes miners to place their antennas at higher elevations to achieve better connectivity. For instance, a Blackbird antenna in Köterberg pinged another in Bremen, over 100 km away, while bypassing a closer, lower antenna. This signals to the Keeper whose antenna was not seen the need for elevation adjustments to maximize rewards and improve network coverage.
If you are a lone Keeper in your area, introducing friends to Chirp can increase your rewards. More miners mean more opportunities for successful pings, enhancing overall network performance and increasing individual rewards.
2) Minimum Distance Rule
To prevent overcrowding, miners cannot be installed less than 300 meters apart on the same account. This rule ensures that a Keeper doesn’t have multiple Blackbird antennas at the same location.
3) Seniority Rule
The Seniority Rule protects the rewards of early adopters. If a new miner is installed close to an existing one, the first miner receives full rewards, while the subsequent miner gets reduced rewards and a lower reward coefficient. This rule promotes the distribution of coverage rather than its concentration in one area, aligning with Chirp’s goal of incentivizing widespread network expansion.
4) Preventing Overconcentration
Chirp addresses the issue of miner overconcentration. Thousands of miners in one area reduce token rewards without adding value to the network. Chirp achieves nearly full coverage in Berlin with just 10 miners.
To maintain optimal coverage, Chirp will implement an automated smart contract system to assess geographical areas. If a hexagon is green, miners can be installed there; if it’s orange, the Keeper should find another location (for example install in houses of their relatives or friends). This approach ensures even distribution and prevents overconcentration.
By implementing these rules and systems, Chirp is committed to protecting user rewards and fostering a fair, efficient, and expansive network.