This change ONLY concerns miners, who run NKN nodes.
This does not have any impact on NKN mainnet token holders or users, does not impact off-chain data transmission, and does not impact normal on-chain transactions including token transfers.
In addition, this will not impact any exchanges (with the exception of Upbit) who trade in ERC-20 NKN tokens.
NKN prizes itself as the largest permissionless blockchain network in the world with over 100,000 full consensus nodes, reflecting the team’s true belief in the power of decentralization. Mining fairness and security of mainnet, is a primary goal of NKN.
When NKN mainnet was launched in 2019 we implemented a mechanism that when a node generates ID, it needs to pay some fee to prevent a few possible attacks. The fee is paid to the Mining Bonus Address (MBA, see details in Appendix B) to increase future mining rewards per block for all miners. Eventually all the fee will be paid back to miners. Currently the fee is set to zero to lower the entrance barrier to encourage new nodes.
However, as the network has gained more attention recently, security is becoming the most important concern. To make the network more secure and enforce mining fairness, we will adjust the generate ID fee to 10 NKN in version v2.1.1.
The following changes will be implemented:
- New node ID will replace the old node ID. Old node ID will be obsolete.
- It will cost each mining node 10 NKN to generate a new ID. The fees will be automatically deposited into the MBA wallet, which will increase future mining rewards for all miners’ benefits. Neither the NKN Foundation nor NKN team can benefit from it. Eventually all the fee will be paid back to miners.
- There will be minimal disruption to existing mining nodes, as NKN Foundation will cover the one-time cost for all existing qualified nodes [see details in Appendix A].
The complete upgrade will include 3 phases:
Phase 1: before block height 2570000 (ETA: UTC 04:00 April 26)
All nodes need to upgrade to v2.1.1 before block height 2570000
Please do not deploy new nodes in this phase as node ID will become invalid soon.
Phase 2: block height 2570000-2600000 (ETA: UTC 04:00 April 26 - 04:00 May 4)
Existing nodes with old ID can generate new ID. To minimize impact on existing network, the NKN Foundation will pay for this new Generate ID fee for all qualified existing nodes, as a one-time courtesy. Existing nodes just need to keep online and wait for a new ID.
New nodes can register new ID by paying a fee of 10 NKN. You just need to make sure node wallet address (NOT beneficiary address) has enough balance, either before or after node starts.
Phase 3: after block height 2600000 (ETA: UTC 04:00 May 4)
All old IDs will become invalid. Nodes without new ID need to generate new ID by paying a fee of 10 NKN.
All nodes will run with new ID, blockchain data will not be impacted.
What Do I Need to Do
If you already have NKN nodes up and running, and you can get its status from the public Internet (e.g. nstatus.org), you just need to update to the latest version and keep it running. There is nothing else you need to do.
If you want to deploy new nodes into the network, wait until block height 2570000 before doing so. After you deploy a new node, node status (e.g. you get it from nstatus.org) will contain a no ID message, together with your node’s wallet address. You can deposit 10 NKN into that address and the node will generate a new ID automatically.
If you want to backup and restore node ID, you just need to back up
wallet.json and your wallet password. For nkn-commercial and one-click, password is stored in file
wallet.pswd. Note that each node must have a unique
wallet.json in the network.
Appendix A: Existing Node ID qualified to be paid by NKN Foundation
We will use the data crawled by our open source crawler to determine the Generate ID transaction that NKN foundation will pay for. To be qualified, a node needs to have port 30001-30005 open (same as the mining requirement for nknd) and was online for at least one crawling period (10 minutes) during UTC 00:00 April 19 to UTC 06:00 April 23. If a node has changed its public key during this period, only the last one will be qualified. A node also needs to continue being online during Phase 2 to be qualified.
Appendix B: Mining Bonus Address (MBA)
Mining Bonus Address (MBA) is NKNaaaaaaaaaaaaaaaaaaaaaaaaaaaeJ6gxa. The Mining Bonus Address is a special NKN wallet address that can transfer tokens into it but not out from it, like a deposit-only account. It is intended to provide additional mining rewards to all NKN miners.
The tokens in MBA will be distributed to miners to increase normal mining reward over long periods of time. Any token transferred into MBA will be added to extra mining rewards starting from 1,576,800 block height, with each year releasing half of the tokens remaining.
Note: We are not changing the original mining schema or the token release schedule. Any rewards that come from the Mining Bonus Address are extra.
With the Mining Bonus Address, we have a mechanism both to boost NKN network expansion in the short term, as well as improve attack resistance over the long term.
Initially, the NKN Foundation will donate to the Mining Bonus Address. But any individual or organization is welcome to donate to the Mining Bonus Address.