Bootstrap Corporation International Trade Union.

Instructions for Working with the Points System and Block Complexity

Reward Calculation

  1. Reward Formula:
    • blocksSinceStart = current block index - 326840
    • year = blocksSinceStart / (432 × 360)
    • difficultyV2 = max(complexity - 22, 0)
    • Result = (3 + (coefficient / 4) + (difficultyV2 / 4)) × (1.005) ^ year
    • Reward = Result × Multiplier (where multiplier ≥ 1)
  2. Coefficient:
    • Possible values: 3 or 0
    • Encourages transactional activity
    • 3 if unique transactions and volume increase over the previous block
    • 0 if they remain the same or decrease
    • Excludes BASE ADDRESS and duplicate addresses
  3. Multiplier:
    • Initial value: 35, linearly decreases every 4 months.

Hybrid Consensus System

The system uses a combination of PoW and PoS to ensure security.

Player Points Formation:

Points = complexity points + random number + staking points + transaction points

  1. Staking Points:
    • Exponential scale:
    • 1st point: 1.1 coins
    • 2nd point: 2.1 coins
    • 3rd point: 4.1 coins
    • Maximum: 30 points.
  2. Transaction Points:
    • Calculated based on the transaction amounts from unique senders:
    • 1st point: 0.11 coins
    • 2nd point: 0.21 coins
    • 3rd point: 0.41 coins
    • Maximum: points cannot exceed staking points.
  3. Complexity and Groups:
    • Every 100-230 seconds, 1 block is selected by nodes with the highest points.

Parameters of Complexity and Hash Goal

Each participant can send blocks with complexity from 17 to 100.

Randomness Generation:

The random number is generated based on the block hash, where the hash serves as the seed for deterministic randomness. The range for the random number is fixed from 0 to 170.

New Scoring Model

The scoring model calculates points for players based on the following:

  1. Difficulty Points:
    • Calculated as: difficulty * 15.
  2. Transaction Points:
    • Determined by a pre-defined formula (already implemented).
    • Capped at the value of mineScore.
  3. Hash Complexity Value (X):
    • Determined by the formula: 170.
  4. Random Range:
    • Fixed range: 0 to 170.
    • A random number is selected within this range.
  5. Total Points:
    • Final calculation: Total Points = Difficulty Points + Random Value + Transaction Points + mineScore.

Example Workflow

  1. Retrieve the current hash complexity.
  2. Calculate Difficulty Points: Multiply hash complexity by 15.
  3. Use a fixed range of 0 to 170 for random number generation.
  4. Select a random number within the fixed range.
  5. Combine all components to determine the total points.

Key Notes

The modern financial system often exhibits instability. Inflation erodes savings, while many new digital assets emerge and vanish, frequently built more on hype than on fundamental economic principles. In this context, there's a growing demand for instruments capable of preserving value, designed with reliance on time-tested economic theories.

Citu represents such an endeavor – an asset whose concept is deliberately built upon the ideas of Milton Friedman regarding the predictability of the money supply and the principles of the Austrian School of Economics, which emphasize the value of scarcity and market mechanisms. Citu is not a pursuit of technological novelty for its own sake, but rather an attempt to create a digital asset with programmed scarcity and limited divisibility, which in itself constitutes an interesting economic experiment.

To truly grasp the concept of Citu's scarcity, let's employ a visual metaphor. Imagine each smallest possible unit of the asset as a tiny object, let's call it an "ant," occupying an area of 1 cm². Now, let's distribute all these units evenly across a surface.

Bitcoin: The total number of Satoshis (Bitcoin's smallest units) is vast – approximately 2.1 quadrillion (2.1 × 10¹⁵). If each Satoshi were our "ant," they would cover a gigantic territory of about 210,000 sq km. This illustrates Bitcoin's scale and high divisibility, but also implies that the value of a single minimal unit is extremely small within the total volume.

Gold: The entire estimated mined supply of gold (around 205 billion grams), if each gram were an "ant," would cover approximately 20.5 sq km. This is significantly scarcer, comparable to the area of a large city park, yet still exists on a scale allowing for broad industrial and jewelry applications.

Citu: The projected maximum issuance of Citu is around 22.6 billion minimal units. If each of these is our 1 cm² "ant," the total area covered would be merely 2.26 sq km. This is the area of a small, exclusive city block. This metaphor highlights the extreme degree of scarcity embedded within Citu at the level of its minimal units, where each part of the whole carries significantly more "weight" compared to assets with much greater divisibility or total supply.

However, scarcity alone is just one element. Citu's economic model is a complex, self-regulating mechanism based on a hybrid consensus (combining Proof-of-Work and Proof-of-Stake) and a meticulously designed incentive system. Instead of a simple competition of computational power, the right to create a new block (approximately every 100-230 seconds) is determined by a participant's (node's) accumulated points.

These points are formed from several components, reflecting a multifaceted contribution to the network:

Difficulty Points: Participants choose a difficulty level (from 17 to 100) for their hash search. The higher the chosen difficulty, the harder it is to find a valid hash (Goal = 100 - Complexity), but the more points are awarded for this component (Difficulty * 15). This is the PoW element, rewarding computational effort.

Staking Points (mineScore): This is not passive income. Locked coins (stake) directly translate into points on an exponential scale (1.1 coins for the 1st point, 2.1 for the 2nd, etc., up to 30 points). This is an active PoS element: the greater your economic stake in the network, the higher your chance of being selected to create a block.

Transaction Points: The system encourages economic activity. Points are awarded based on the volume and uniqueness of transactions processed by the node (calculated based on transaction amounts from unique senders: 0.11 coins for the 1st point, 0.21 for the 2nd, etc.). Crucially, these points cannot exceed the node's Staking Points (mineScore), directly linking transactional throughput to a real economic commitment.

Random Component (Random Value): A deterministic random number (within a fixed range of 0-170), generated based on the block hash, adds an element of unpredictability. This prevents complete dominance by participants with maximum resources and promotes greater fairness.

Total Points = Difficulty Points + mineScore (Staking Points) + Transaction Points + Random Value. The node with the highest total points gets the right to create the next block and receive the reward.

The block reward itself is also dynamic and intelligently calculated:

It accounts for Time: The reward base gradually increases over the years ((1.005) ^ year), though capped by the overall emission schedule.

It considers the Chosen Difficulty: A higher block difficulty (difficultyV2 = max(complexity - 22, 0)) can increase the reward (difficultyV2 / 4 term), compensating miners for their increased effort.

It reflects Network Activity: A special coefficient (coefficient / 4 term, where coefficient is 3 or 0) increases the reward if the number of unique transactions and their volume grow compared to the previous block, incentivizing the network's economic "liveliness."

It includes an Overall Multiplier: Starting at 35 and linearly decreasing every 4 months, this ensures a controlled and predictable reduction in the emission rate over time. (Reward = Result × Multiplier).

Thus, the Citu system functions like an exceptionally thoughtful, impartial, and automated economic regulator. It is not subject to the whims of a central authority or human error. Its deterministic rules work tirelessly 24/7, incentivizing both security (through difficulty and staking) and economic activity (through transaction points and reward coefficients). It dynamically balances incentives for participants, aiming relentlessly to preserve the intrinsic value of Citu and protect the human effort represented by these coins.

This sophisticated system also incorporates lessons from history, such as the "Price Revolution" in Spain caused by an overabundance of gold from the New World, which led to inflation despite gold's intrinsic value. Citu is designed to prevent such a scenario of "scarcity inflation" through:

A strictly limited total supply.

A pre-programmed reduction in rewards (the decreasing Multiplier).

The difficulty and points mechanism: Earning rewards requires a combination of effort (PoW), economic commitment (PoS/staking), and participation in network activity. Coins cannot simply be "printed" in excess.

The active role of staking (mineScore): It doesn't just passively "remove surplus." It is a prerequisite for earning significant transaction points and a core component of the PoS influence, thereby integrating capital directly into the consensus process and the regulation of the circulating supply.

Consequently, Citu is positioned not as a speculative instrument, but as an asset whose stability and value stem from its complex yet logical architecture, founded on classical economic principles and enhanced by modern cryptographic and consensus mechanisms. It is a model for those seeking a potentially reliable store of value for the long term, built on transparent rules, mathematically grounded scarcity, and an inherent system of self-regulation that values and rewards genuine contribution to the ecosystem.