Voter Handbook

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program

Updated July 2020

Voter Handbook

• IoTeX Delegate Program Overview
• Voter Requirements
• Delegate Program Processes
• Staking
• Voting
• Ranking
• Rewards (for Delegates & Voters)
• Staking & Voting - Example
• IoTeX Mainnet Roadmap

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program

IoTeX Delegate Program Overview

IoTeX is a digital democracy where token holders vote for Delegates to maintain and grow the network.

The top 36 voted Delegates are Consensus Delegates that manage consensus on behalf of the entire IoTeX network:

What is the role of a Voter?

How to become a Voter?

Creating and Validating Blocks

Maintaining Servers and Network

Processing Smart Contracts and Transactions

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program

Voter Requirements

• Install ioPay, the official Wallet of the IoTeX Network, to stake and vote
• Create a new IoTeX address or import an existing address via ioPay

PRIVATE & CONFIDENTIAL – DO NOT DUPLICATE OR DISTRIBUTE WITHOUT WRITTEN PERMISSION

Delegates Website

ioPay Wallet

IOTX Coins

• Voters will use the IoTeX Delegates Website (member.iotex.io) to view all Delegate candidates and vote
• Stake and vote via the Delegate website, which you may interact with using the ioPay wallet

• To stake and vote, you will need IoTeX native coins (IOTX)
• You may purchase IOTX on exchanges (e.g., Binance, Bittrex, KuCoin, Upbit) or earn IOTX via community reward programs

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program

Staking

Staking IOTX to generate voting power:

Auto-stake to maintain bonus:

• Token holders will stake IOTX tokens to get votes:

1 IOTX = 1 Vote

• Setting a stake duration (# of days) generates bonus votes:
• Choose any 7-day interval (max = 1,050) as your stake duration
• Bonus votes for various stake durations: click here
• Longer stake durations = more bonus votes:

Bonus Votes (%) = log _1.2 (stake duration)

• After stake duration expires, stakeholders can unstake / withdraw their originally staked IOTX to their wallet after 3 days

1. An epoch is currently defined as 1 hour and a new block is created every 5 seconds

To maintain your bonus votes, you can auto-stake and lock a specific stake duration (i.e., 28 days).

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Example: 10,000 IOTX auto-staked for 28 days:

• 1,828 bonus votes on Day 1 [log _1.2 (28)], which are maintained until auto-stake is turned off
• 0 bonus votes 28 days later (stake duration ends)

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program

Voting

Voting for Delegates

• To vote for a Delegate, voters may set their own parameters:

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• With one wallet, you can create multiple buckets to vote for multiple Delegates :

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• At any time, you can redirect your votes to a new Delegate and/or extend your stake duration

Illustrative Example: Different Voters, Different Buckets

• Each voter has 1,000 IOTX and votes for Delegates using different buckets (tokens / stake durations)
• Difference in total votes across voters is due to bonus votes from staking for different durations.

IoTeX Voter

#2

#3

#1

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program

Ranking

• Based on the votes of all IoTeX voters, all Delegates are rank-ordered in real-time based on their total votes.
• A Delegate’s total votes includes votes for oneself (self-stake) and votes from other token holders.
• The top 36 voted Delegates are the Consensus Delegates for the current epoch.
• Of these 36 Consensus Delegates, 24 are randomly selected to mine blocks for the current epoch.
• All Consensus Delegates must maintain a productivity ratio (mined blocks / total) of at least 90% to remain eligible.

Top 36 = Consensus Delegates

New random 24 are selected to

produce blocks for epoch #2

How are Delegates ranked?

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program

Rewards for Delegates

• Delegates are rewarded in IOTX coins every epoch
• Rewards are distributed from the Rewards Pool, consisting of:
• Reserved mining tokens: 1.2 billion IOTX (12% of total supply)
• Transaction fees: all gas fees from txns in the IoTeX network
• Other contributions: donations from IoTeX Foundation and others
• Delegate rewards consist of block rewards & epoch bonus rewards:
• Block reward (fixed): Consensus Delegates receive 8 IOTX per mined block (one block every five seconds)
• Extra bonus reward: until June 2021, the IoTeX Foundation will provide 80 IOTX per epoch to each of the top 36 Delegates.
• Epoch bonus reward: all Delegates share 18,750 IOTX per epoch based on their weighted votes

How are Delegates rewarded?

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Delegates Program

Rewards for Voters

How are Voters rewarded for staking?

• Delegates all have unique reward plans to cover costs, donate to funds, and re-distribute rewards to their voters
• Think of it as Delegates charging a small service fee to stake your tokens

Tips for Voters

• Create a diverse voting portfolio that is representative of your vision for the future of IoTeX
• If you want IoTeX to prioritize…
• Community, vote for an IoTeX Ambassador
• DApps, vote for a Dev Group
• Enterprise, vote for an investor
• The difference in rewards across Delegates is marginal (i.e., 80% vs. 85%), but the difference in potential impact can be large – vote for the benefit of IoTeX!

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program

Staking & Voting - Example

This flow diagram is an illustrative example of the progression of a token holder’s votes over time. This voter has created 4 buckets using 2mm IOTX tokens.

The end-to-end process includes initial staking / voting, vote changing, stake duration expiry, un-staking, and withdrawing processes.

Buckets

#1 - 4

The Privacy-Centric Blockchain Platform for the Internet of Things (IoT)

Delegates Program