Block reward function in Jax.Network: What’s the purpose of this unusual approach to scalability?
3 min readJax.Network blockchain network is popular for its unusual approach to blockchain technology and scalability. One significant difference between this blockchain ecosystem and all the others in the market is that this blockchain network is governed by two native digital coins known as JAXNET coins and JAX coins.
These two native digital coins are different in many ways; they are mined differently, serve unique purposes, and are mined on other chains within the same network. JAX coins are mined on the shard chains within the Jax.Network blockchain ecosystem, while JAXNET coins are mined on the beacon chains.
To control the value of JAX coins, and ensure that the coins aren’t issued in excess or below the required limit, the Jax.Network blockchain uses a blockchain reward function. This reward function is executed on the shard chain and is why JAX coins have a stable value. So, how exactly does the block reward function work in the ecosystem? Let’s find out!
How the block reward function works
The function is responsible for issuing merge miners with reward coins whenever they commit their computing power to mine and mint coins within the Jax.Network ecosystem.
Inside the ecosystem, the blockchain reward feature, also known as the block reward function, is executed on the shard chains where JAX coins are minted.
However, the mining of JAXNET coins happens on the beacon chains and isn’t governed by the reward function. So, here’s exactly how the reward function works on the shard chains to control the value of the coins.
Coin miners are usually focused on their potential profits, and therefore, they will only mine the Jax.Network blockchain whenever there is a need for the coins. Similarly, when the demand goes down, the miners will reduce their power contribution to the network, reducing the number of coins produced.
The block reward function works based on the popular law of economics, known as supply and demand. According to the miners ‘ contribution to the network, the reward function ensures that the mined coins are issued proportionally.
For example, if John contributes 400 units of hash power to Jax.Network while Jane contributes 500 units of hash power to the same Jax.Network blockchain ecosystem, John will be rewarded with 400 coins while Jane will receive 500 coins.
This illustration aims to clarify the concept of the proportional reward system and how it works on the Jax.Network.
Why is the blockchain reward function important?
The proprietary blockchain reward function is an essential part of the JaxNet protocol. The JaxNet protocol involves merge-mining coins within Jax.Network, while the blockchain is anchored to the BTC ecosystem.
It is essential to ensure the coins are not affected by inflation or are not over issued, and for that reason, the Jax.Network designed their proprietary block reward function.
The reward function that exists on the shard chains is why JAX coins are stable in value. Its ability to control the minting and mining process and coin issuance makes it possible to maintain a stable value of JAX coins.
This way, JAX coins can serve their primary purpose: to become a widely adopted cryptocurrency suitable for making online payments, supports faster and safer transactions at low fees, and has a relatively stable value to serve as a payment currency.
Conclusion
The reward function is a fundamental part of the entire blockchain ecosystem that governs the value of the native digital coins. It helps protect the digital coins from inflation while also maintaining a proper balance of supply and demand.
