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Source: PlatON
Original title: "Interpretation of Ten Thousand Words | Detailed Explanation of the PlatON Economic Model from an Accounting Perspective"
Written by: PlatON
Accounting is an important part (essential) of economic management activities. It is an economic management activity that aims to improve economic benefits, uses currency as the main unit of measurement, and uses special methods to calculate and supervise (basic functions) the economic activities of subjects, enterprises and institutions.
Among them, accounting is the comprehensive, continuous and systematic recording and reflection of the economic business that occurs or completes in enterprises and institutions. Supervision is the review and inspection of the legality, compliance and effectiveness of the economic business to be accounted for.
Similarly, in , we will analyze the economic model of PlatON from the perspective of accounting, and record and reflect the relevant economic business in the system comprehensively, continuously and systematically.
PlatON Economic Model
One of the core issues of economic research is the rational allocation of scarce resources. As an open, free, distributed system that everyone can participate in, a well-designed economic model can ensure the reasonable allocation of public chain resources on the premise of maximizing the interests of participants, and at the same time combine the interests of each participant with the public chain. The overall interests of the chain are aligned, so that it can contribute to the entire blockchain network while pursuing its own economic interests, ensuring that the network can develop stably for a long time. In PlatON's economic plan, from the perspective of accounting, the economic activities included in
mainly include: initial issuance, additional issuance, rewards, punishments, handling fees, miners' fees and other major economic activities.The generation of every economic activity involves the transfer of Token (Token is the main currency measurement unit in the public chain).
Similarly, from the perspective of accounting identity rules, in the PlatON network, any economic business will not change the balance relationship of the accounting equation. By using the accounting identities combined with the accounting method of bookkeeping (double-entry bookkeeping), it can be very good. The various economic and business activities in PlatON are intuitively reflected.
Enterprise economic activity:
Economic activity on PlatON:
From the comparison of the above pictures, we can find that if the entire PlatON system is regarded as a large commercial company, its economic model dominates various economic businesses, and all participants in the system When the subject interacts with the system, it will be accompanied by the change of Token, that is, the corresponding economic activity will occur.
### Accounting in PlatON
is used in accounting, and you need to set up a corresponding account before accounting. Account settings need to be defined in conjunction with accounting elements. In accounting, accounting elements are a simple classification of accounting objects, mainly including six accounting elements: assets, liabilities, owners' equity, income, expenses and profits. Among them:
- Assets: refers to the resources formed by past transactions or events, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise. In PlatON, assets mainly refer to Tokens held by various entities.
- Liabilities: refers to the debts borne by an enterprise that can be measured in currency and need to be paid in assets or labor. In PlatON, we define the Token to be issued as a liability.
- Owner's equity: refers to the residual equity enjoyed by the owner after deducting the liabilities from the assets of the enterprise, or the investor's claim to the net assets of the enterprise.
- Income: The total inflow of economic benefits formed by an enterprise in daily activities such as selling goods and providing services.In PlatON, the block reward obtained by the daily activities of the miner node is a part of the main body of the miner's income.
- Expenses: It is the outflow of economic benefits from daily economic activities such as the sale of products and the provision of labor services. In PlatON, the fee for the subject to send the transaction loss is the fee.
- Profit: The business success achieved by a company in a certain period of time. In PlatON, the validator node provides services, and the staking reward generated is the profit of the main body, and the reward generated by the user's delegation is also the profit.
A rule that every accountant knows, the accounting equation:
Expenses+Assets=Liabilities+Owner’s Equity+Incomes The two have striking similarities, but also slight differences. In conventional accounting and bookkeeping, economic entities usually refer to enterprises, while in PlatON, there are multiple economic entities (including enterprises), and each economic entity generates economic activities with each other.
In order to clearly record the economic activities of each subject in PlatON and track them, verify the correctness of the economic model, ensure the stability of the system, the correctness of the data, etc., and improve economic benefits, combined with double-entry bookkeeping in accounting In theory, starting from different subjects, setting accounting subjects, we introduce the accounting identity principle into the PlatON economic model.
here is the flexible use of the basic functions of accounting: accounting and supervision . The occurrence of any economic business will not change the balance of accounting identities. Based on this principle, PlatON's entire economic model system can be monitored and verified. By combining accounting-related knowledge points, the PlatON system can be well verified, and the economic model of the entire system can be further strengthened.Accounting subjects in
PlatON
accounting subjects are subjects for classifying and accounting for the specific content of accounting element objects. That is, the name given to each asset, liability and owner's equity after classification. The main significance of its existence lies in: the setting of
- accounting subjects provides conditions for comprehensive, systematic and classified accounting and economic business;
- accounting subjects are an important basis for accounting;
- accounting subjects are means to strengthen management.
Now we will analyze PlatON's economic model from accounting subjects as an entry point. First of all, it is necessary to define the corresponding accounting subjects, so as to make good use of the characteristics of accounting functions and effectively reflect the continuity, systematicness and completion of economic activities. According to the economic activity characteristics of the PlatON economic model and the requirements of accounting standards, the following conditions need to be met when setting the name of the accounting subject in PlatON:
- can independently describe a certain aspect of accounting elements, such as: assets, expenses or rewards;
- It can systematically and comprehensively reflect the accounting elements, such as: the changes of the multi-party Tokens involved in the transfer meet the accounting identity; the accounting subjects defined by
- must meet the needs of decision-making and management, such as: providing data support for the brother system;
- combines the characteristics of the system , combining unity with flexibility.
Accounting staging is the process of continuous operation of an enterprise, which is artificially divided into successive time segments of the same length, so as to account for and report the financial status and operating results of the accounting subject. In PlatON, we will record the ledger in one block as the smallest unit. Of course, when programming related reports, it can be compiled according to the settlement cycle or a certain interval block height.
accounting record method contact block diagram:
Before defining each accounting subject, we first understand the characteristics of the accounting subject.
General classification subject : Also known as first-level subject, it refers to the accounting subject that categorizes the specific content of accounting elements in a general manner, and is the basis for general classification accounting.
Detailed classification subjects : Also known as detailed subjects, refers to the accounting subjects that classify the economic content reflected by the first-level subjects in more detail on the basis of the first-level subjects. Detail classification subjects can be further divided into second-level detail subjects and third-level detail subjects according to the level of detail of the indicators they provide.
description: In the actual situation, in the following accounting vouchers, there will actually be a lot of economic activities, which correspond to more complex double-entry accounting. Only the simplest scenarios are listed here.
The following table shows the definition of accounting subjects:
Description:
In PlatON, it is classified according to the content of economic activities. Each subject is defined to target economic activity in different scenarios in the PlatON economic model. It is much easier to analyze different economic activities in the following, according to the defined accounting subjects. In the next content of
, we will build various scenarios of PlatON that will generate economic activities to describe in detail, match the defined accounting subjects, and generate corresponding accounting vouchers. According to the generated voucher data, we can accurately track the economic activities in the entire PlatON, including the direction of the Token caused by each economic activity. At the same time,
follows the accounting standard: "If there is a loan, there must be a loan, and the loan must be equal." It can effectively calculate and verify the economic data of the entire PlatON to ensure the correctness and continuity of the system. If there is an abnormal phenomenon that does not satisfy the accounting identity, it can also quickly locate the problem based on the accounting voucher.
Nobita's surprise
In the early morning of the weekend, the sound of birds chirping by the window woke the sleeping Nobita. Nobita has grown up and has not enjoyed a quiet weekend for a long time. After waking up, I picked up my mobile phone, and PlatON's WeChat public account pushed the first tweet in the morning. As a loyal fan of PlatON, I will not miss any article, just click to view it. The eye-catching title instantly awakened the confused Nobita: "PlatON's first network (Alaya network) is launched today." So immediately check the mailbox to see if the node qualifications previously applied for have passed the review. Nobita is lucky enough to be qualified as an Alaya network verification node. After
washed up in a hurry, take out the computer -> turn it on -> visit the PlatON official document deployment instructions. Purchasing cloud hosts, initializing configurations, etc., according to the requirements of the document, and completing the pre-deployment preparations.
First of all, there is 10,000 ATP lock-up funds in Nobita's pledge wallet address, and the official also provides transaction fees (100 ATP balance) for nodes to send initial transactions. Nobita uses the pledge address A to pledge its node to the Alaya network to become a validator node, and designates the reward address as: B. The pledge operation is completed through a pledge transaction. The transaction consumes a handling fee of 0.0002 ATP and the pledge amount is 10,000 ATP. (Locked funds). After the
pledge was completed, after a round of settlement cycle confirmation, Nobita's node successfully became an active validator. After a period of time, Nobita's node successfully completed the packaging of N blocks and received a block reward of 10 ATP. So far, Nobita has successfully become a node in the Alaya network, making its own contributions to the network while earning rewards.
Analysis:
From the scenario described in the above story, starting from the PlatON economic model, a variety of economic business activities have been generated.The main economic activities are:
- Nobita obtains lock-up funds
- Nobita obtains balance funds
- Nobita sends pledge transactions to pledge nodes The corresponding main part is introduced in detail. The main entities involved in the above economic activities include: incentive pool contract, pledge contract, Nobita's wallet address, and lock-up contract.
Incentive Pool Contract
Scenario: After Nobita's node produces a block, the block reward or pledge reward funds obtained are paid from the incentive pool contract, and the funds are transferred from the incentive pool contract account to Nobita's reward address account.
is a participant in one of the economic activities in the PlatON incentive pool. Its main economic activity scenarios are:
- Block reward: The incentive pool will give the corresponding reward after the node produces a block
- Staking reward: During the settlement cycle, all validators participate in the verification Reward distribution,
- punishment funds are given by the incentive pool: Tokens deducted by nodes due to illegal rules will enter the incentive pool
The main accounting subjects corresponding to the incentive pool contract are:
Therefore, from the analysis of the incentive pool contract as the main body, the resulting Double-entry bookkeeping for economic activities takes the following form.
Bookkeeping voucher description:
- Block reward: Token flows from the incentive pool contract to the node reward address, the balance increases to the reward address, and the balance decreases to the incentive pool contract address;
- Pledge reward: Token flows from the incentive pool contract to the node Reward address, the one whose balance increases is the reward address, and the one whose balance decreases is the incentive pool contract address;
- penalty funds: Token flows from the pledge contract to the incentive pool contract address, the one whose balance increases is the incentive pool contract, and the one whose balance decreases is the pledge contract address.
Through the above double-entry accounting records, the inflow and outflow of Tokens held by the incentive pool can be clearly seen, which can be traced to each specific economic activity.
Note: The detailed node ID and reward address are not recorded in the illustration. The subjects in the real record will bind the node's ID and address to more accurately track the direction of the Token.
Pledge contract
In PlatON, the pledge contract participates in all economic activities related to the pledge. The main scenarios include:
- Pledge/Unpledge: For a newly pledged node, the user's Token will be locked in the pledge contract.
- Delegation/redemption Return to entrustment: User entrusted, Token will be locked in the pledge contract
Accounting subjects are mainly divided into:
According to the above assigned subjects, the main economic activities are then analyzed by accounting vouchers.
Pledge or release
Description: In actual situations, pledge and release of pledge will actually generate a lot of economic activities according to different scenarios and states, corresponding to more complex double-entry bookkeeping. Only the simplest scenarios are listed here.
Bookkeeping voucher description:
- Pledge (balance): Token flows from the Daxiong wallet address to the pledge contract, the balance increases to the pledge contract, and the balance decreases to the Daxiong wallet address;
- De-pledge (balance): Token flows from the pledge contract to the pledge contract Nobita wallet address, the balance increases the Nobita contract address, and the balance decreases the pledge contract;
Note: The detailed description of using the lock-up gold for pledge is in the main part of the lock-up contract. Here, it is assumed that the balance is used for pledge to illustrate economic activities. relation.
Locked contract
Scenario: Nobita uses the locked amount for pledge operation, and the locked balance will be transferred to the pledge contract.
In PlatON, the lock-up contract participates in all economic activities related to lock-up, use of lock-up amount, lock-up release, etc. The main scenarios include:
- Lock-up amount pledge/de-pledge
- User lock-up
- Lock-up release
Accounting subjects are mainly divided into:
According to the above assigned subjects, the main economic activities are then analyzed for the accounting vouchers.
Pledge/Unpledge for the locked amount.
Description of accounting voucher:
- Pledge (lockup money): Token is transferred from the lockup contract to the pledge contract. The increase in the balance is the pledge contract, and the decrease in the balance is the lockup contract;
- Release the pledge (Lock-up money): Tokens flow from the pledge contract to the lock-up contract. The increase in the balance is the lock-up contract, and the decrease in the balance is the pledge contract.
Daxiong met Fat Tiger
The deployment was successful, the pledge was successful, and Daxiong successfully became a node of the Alaya network. At this moment, he was in a good mood and was humming a little song. Seeing that the weather was good, Nobita decided to go out for a walk, and he went out with a jump. Coincidentally, as soon as I went out, I ran into my old friend, Brother Fat Tiger. Today's Fat Tiger looked in a particularly good mood. Instead of beating Nobita as soon as he came up, he approached enthusiastically and said that he wanted to show Nobita something mysterious. Fat Tiger took out his mobile phone, clicked into an APP-ATON wallet after a single operation, and proudly displayed his ATP balance in front of Nobita. After some understanding,
learned that Fat Tiger's ATP is a reward obtained by participating in community activities. Because of its high enthusiasm, it has obtained more rewards (including liquidity + lock-up). Nobita watched Fat Tiger's Token still lying in the balance account. As a senior node, the opportunity for Nobita to perform has come.He excitedly told Panghu a few things:
- can entrust ATP (flow, lock-up) to verification nodes to obtain rewards;
- When selecting nodes, choose a node with a relatively high reward ratio, preferably one with a reward ratio of 100% Nodes;
- rewards are issued once in each settlement cycle, and you can see your rewards on the corresponding nodes in about 3 hours;
- rewards can be claimed on ATON after the rewards are issued, and the rewards after receiving can continue to be delegated.
Fat Tiger listened to Nobita's prompt and immediately started the operation on ATON. Filtered according to the reward ratio, the node of Nobita was selected (the reward ratio of Nobita node is 100%). Select the node -> delegate -> enter the amount -> adjust the transaction fee -> enter the password -> send, Fat Tiger completed all operations in one go, and the next step is to wait for the reward. After completing the operation, Fat Tiger was all about checking the rewards, so he was so happy that he went home directly.
After a period of time, Fat Tiger opened ATON again and found that the reward had been obtained. At this time, it was necessary to collect the reward before transferring it to the address balance. Fat Tiger excitedly clicked to claim -> collect all -> adjust handling fee -> enter password -> package and produce block -> received the account, looking at the newly added balance, Fat Tiger excitedly called Nobita.
From the scenario described in the above story, starting from the PlatON economic model, a variety of economic business activities have been generated.The main economic activities are:
- Fat Tiger participates in community activities to obtain ATP - Transfers
- Fat Tiger to entrust Nobita's nodes - Commissions
- Fat Tiger to get rewards - Reward distribution - Blocking/Pledge Rewards
- Fat Tiger's lock-up gold - Lock-up
- Fat Tiger's use of lock-up amount delegation - Lock-up delegation The main body includes: incentive pool contract, pledge contract, fat tiger wallet, delegated incentive pool contract.
Pledge contract
In the above scenario, the participation of pledge contract in economic activities mainly includes:
- Delegate/redemption delegation: User delegates, Token will be locked in the pledge contract;
The accounting subjects are mainly divided into:
According to the above assigned subjects , and then analyze the bookkeeping vouchers for the main economic activities.
Balance delegation or redemption delegation (Balance): Tokens are transferred from the pledge contract to the Fat Tiger wallet address, the wallet address of the Fat Tiger is the one whose balance increases, and the pledge contract is the one that decreases the balance.
Delegated Incentive Pool Contract
In the above scenario, the economic activities that the Delegated Incentive Pool contract participates in mainly include:
- Block Delegated Rewards: Rewards for producing blocks, the nodes will distribute part of the rewards to the entrusting users proportionally, and the Tokens are temporarily stored in the Delegated Incentive Pool contract ;
- Pledge delegation reward: Pledge reward, the node will distribute part of the reward to the delegated user proportionally, and the Token is temporarily stored in the delegation incentive pool contract;
- Receipt of delegation reward: User receives delegation reward.
Accounting subjects are mainly divided into:
According to the above assigned subjects, the next step is to analyze the accounting vouchers for the main economic activities.
Block reward
Pledge reward
Receipt entrustment reward
Accounting voucher description:
- Block reward: Token flows from the incentive pool contract to the entrusted incentive pool contract, the balance increase is the delegation incentive pool contract, and the balance decreases is the incentive pool contract ;
- Pledge reward: Token flows from the incentive pool contract to the delegated incentive pool contract, the balance increases to the delegated incentive pool contract, and the balance decreases to the incentive pool contract;
- Receipt of delegated rewards: Token flows from the delegated incentive pool contract to the user wallet, The balance increase party is the user's wallet address, and the balance decrease party is the delegated incentive pool contract;
lock-up contract
In the above scenario, the economic activities involved in the delegated incentive pool contract mainly include:
- User lock-up
- Lock-up amount delegation/redemption Delegating
- Locking and releasing
The accounting subjects are mainly divided into:
Delegate/redemption of locked amount In the pledge contract, the one whose balance increases is the pledge contract, and the one whose balance decreases is the lock-up contract;
- releases the delegation (lock-up money): Token flows from the pledge contract to the lock-up contract, the balance-increase is the lock-up contract, and the balance-decrease is the pledge Contract;
- User lock: Token flows from the user's wallet address to the lock contract, the balance increases to the lock contract, and the balance decreases to the user's wallet address;
- lock release: Token flows from the lock contract to the user's wallet address, The user's wallet address is the one that increases the balance, and the lock contract is the one that decreases the balance.
Note: The lock-up amount here is set according to the scene, and it should belong to the lock-up to the fat tiger wallet address.
Ordinary address
In the above scenario, Fat Tiger is an ordinary user, and the economic activity scenario involved is:
- User transfer
- Payment transaction fee
Note: In fact, the introduced subjects have already included the user wallet address related Economic activities, here we start from the perspective of the user's wallet address.
accounting subjects are mainly divided into:
main transaction-related scenarios, which have been described in other parts of the article, and only the core transfer and transaction fees are analyzed here. Based on the above assigned accounts, the next step is to analyze the bookkeeping vouchers for the main economic activities.
Transfer
Handling fee deducted from
Accounting voucher Description:
- Transfer: Token flows from user A's address to user B's address (A may be the same as B), the balance increase is the user B address, the balance decrease is the user A address ;
- Deduction of handling fee: Token flows from the user's wallet address to the node reward address, the node reward address is the one whose balance increases, and the user's wallet address is where the balance decreases;
Accounting principle
According to the identity formula, at any time, the The sum of the loan balance is equal to the total issuance of PlatON, which is fair, just, open and transparent at all times. According to the recorded accounting vouchers, we can summarize the sum of the loan balances of each subject, and the aggregated balance must always be equal to the initial total issuance + additional issuance.
Therefore, by combining accounting-related knowledge points, the PlatON system has been fully verified, and the economic model of the entire system has been further strengthened.
