What is Universal Reward Function in the JaxNet ecosystem?

1. What is the Universal Reward Function in the Jax.Network Ecosystem? jax.network

2. Miners often get fixed rewards whenever they generate a new block, irrespective of the mining difficulty. As of this writing, any Bitcoin miner who successfully verifies a block (often after every 10 minutes) receives 6.25 BTC as an incentive. jax.network

3. Although the halving process benefits Bitcoin investors, it somewhat demotivates validators, small-scale miners. As an improvement on the fixed reward rule, Jax.Network has come up with a unique universal reward system for miners based on the complexity of the mined block. jax.network

4. Understanding the Universal Reward Function in Jax.Network Jax.Network has two native coins, JXN and JAX, which have different investment purposes and utilities. • JXN coin is mined on the beacon chain. It is issued based on the fixed reward system, which is more beneficial to the investors for speculative reasons since the coin becomes a deflationary asset. • JAX coin miner receives rewards according to the executed amount of work and with this reward function, the expected value of JAX is equal across shards. • Miners who are mining Jax.Network shard chains are rewarded with JAX coins based on the newly proposed universal reward function, which sets mining rewards based on the mining complexity of the block. • The universal reward function allows Jax.Network to fulfill the underlying philosophy of cryptocurrencies as systems for decentralized global payments. jax.network

5. Functional Comparison of JAX Versus JXN Parameter of comparison JXN JAX JAX follows the new universal reward function where miners can only receive rewards based on their hash power committed to maintaining the network, provided they have sent their BTC+JXN coinbase reward to an invalid address. Reward Scheme Like Bitcoin, JXN follows a fixed reward scheme; miners receive 20 JXN coins per valid block mined on the beacon chain. Jax.Network incentivizes miners to mint more JAX coins in a high-demand situation, making it less volatile and more stable. The coin value is underwritten by the electricity cost necessary to print 1 JAX. This reward scheme makes the coin a speculative asset. Hence, it is not stable. Stability jax.network

6. Effects of Universal Reward Function on JAX Coin This reward scheme applied in the shard chains has multiple benefits. Some of them are: • The reward scheme sets a balance between strong and weak nodes. Jax.Network gives rewards based on the quality of each block which satisfies more miners. • This approach helps keep the coin stable as its value is based on the cost of production. It’s a kilowatt-hour cryptocurrency. • JAX reduces volatility. Jax.Network employs rule-based monetary economics where the issuance of JAX can also be increased when there is more demand for the coins. jax.network

7. Conclusion The reward for mining JAX coins depends on the complexity of the mined block. Differentiating between strong and weak nodes helps solve issues with security and hidden penalties. Jax.Network is the first network to eliminate these issues. Along with its unique reward function, JAX has the potential to become a reliable, stable, and secure electronic cash. jax.network

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