In PlatON’s economic plan, starting from an accounting perspective, it includes major economic activities such as initial issuance, additional issuance, rewards, penalties, handling fees, and miner fees.
Original title: “Interpretation of 4D Characters | Explaining 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 efficiency, uses currency as the main unit of measurement, and uses special methods to calculate and supervise the economic activities of entities, enterprises, and institutions (basic functions).
Among them, accounting is a comprehensive, continuous, and systematic record and reflection of the economic business that has occurred or completed by enterprises and institutions. Supervision is to review and inspect the legality, compliance and effectiveness of the economic business accounted for.
Similarly, we will analyze PlatON’s economic model 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. The public chain is an open, free, and 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, the interests of each participant can be shared with the public. The overall interest of the chain is aligned, so that it can contribute to the entire blockchain network while pursuing its own economic interests, ensuring the long-term stable development of the network.
In PlatON’s economic plan, from an accounting perspective, the economic activities included 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 business will not change the balance of accounting equations. By using accounting identities combined with accounting’s bookkeeping method (double-entry bookkeeping), Various economic and business activities in PlatON are intuitively reflected.
Business economic activities:
Economic activity on PlatON:
From the above picture comparison, we can find that if the entire PlatON system is regarded as a large-scale commercial company, its economic model dominates various economic businesses, and all entities participating in the system will be accompanied by the interaction with the system The change of Token means that the corresponding economic activity has occurred.
### Accounting in PlatON
In accounting bookkeeping, you need to set up the corresponding account before bookkeeping. The account setting needs to be defined in conjunction with accounting elements. In accounting, accounting elements are a simple classification of accounting objects, which mainly include six accounting elements: assets, liabilities, owner’s 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 the enterprise that can be measured in currency and need to be repaid by assets or labor. In PlatON, we define Tokens to be issued as liabilities.
Owner’s equity: refers to the residual equity enjoyed by the owner after deducting liabilities from the assets of the enterprise, or the right of investors to claim the net assets of the enterprise.
Income: The total inflow of economic benefits formed by enterprises in daily activities such as selling goods and providing services and labor. In PlatON, the block rewards obtained by the daily activities of miner nodes are part of the main income of miners.
Expenses: It is the outflow of economic benefits incurred by the company in daily economic activities such as selling products and providing labor services. In PlatON, the transaction fee of the subject sending transaction loss is the fee.
Profit: The business success achieved by the company in a certain period of time. In PlatON, the validator node provides services, and the pledge reward generated is the profit of the main body, and the reward generated by the user’s entrustment is also the profit.
A rule that every accountant knows, accounting equation:
Expenses + Assets = Liabilities + Owners’ Equity + Income
Through accounting elements, we can see that the economic activities in PlatON are analyzed from the basic theories of accounting. The two have surprising similarities and 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 and track the economic activities of each subject in PlatON, verify the correctness of the economic model, ensure the stability of the system, the correctness of data, etc., and improve economic efficiency, combined with the double-entry bookkeeping theory of accounting Starting from different subjects, setting up accounting subjects, we introduce the principle of accounting identities 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 fully verified, and the economic model of the entire system is further strengthened.
Accounts in PlatON
Accounting subjects are subjects that classify and calculate 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 a means to strengthen management.
Now we will analyze PlatON’s economic model from accounting subjects as the starting 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 completeness 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 account title in PlatON:
Be able to independently explain an aspect of accounting elements, such as assets, expenses or rewards;
It can systematically and comprehensively reflect accounting elements, such as: the change of multi-party Token involved in the transfer satisfies the accounting identity;
The defined accounting subjects must be able to meet the needs of decision-making and management, such as: providing data support for the brother system;
Combining the characteristics of the system, unity and flexibility are combined.
Accounting staging is the process of continuous business operations, artificially divided into consecutive time periods of the same length, in order to calculate and report the financial status and operating results of the accounting entity. At PlatON, we will use a block as the smallest unit to record the account book. Of course, when programming related reports, it can be compiled according to the settlement cycle or a certain interval of block height.
Contact block diagram of accounting recording method:
Before proceeding with the definition of each accounting subject, let us first understand the characteristics of the accounting subject.
General classification subjects : also known as first-level subjects, which refer to the accounting subjects that collectively classify the specific content of accounting elements, and are the basis for general classification accounting.
Detailed classification subjects : also known as detailed subjects, refer to the accounting subjects that are classified in more detail on the basis of the first-level subjects, and the economic content reflected by the first-level subjects. The detailed classification subjects can be further divided into the second-level detailed subjects and the third-level detailed subjects according to the level of detail provided by the indicators.
Note: In actual situations, the following accounting vouchers will actually generate a lot of economic activities, corresponding to more complex double-entry accounting. Here is only the simplest scenario.
The following table shows the definition of accounting subjects:
Description:
In PlatON, it is classified according to the content of economic activities, with the highest level of accounting subjects in the fourth level of subjects and the lowest level of subjects. The definition of each subject is aimed at economic activities in different scenarios in the PlatON economic model. Based on the defined accounting subjects, it is much easier to analyze different economic activities next.
In the following content, we will construct PlatON’s various scenarios 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 trend of the token caused by each economic activity.
At the same time, in accordance with the accounting standards: “If there is a loan, there must be a loan, and the loan must be equal”, which 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, the problem can also be quickly located based on the accounting vouchers.
Nobita’s surprise
In the early morning of the weekend, the sound of birds by the window awakened the sleeping Nobita, who hadn’t enjoyed a quiet weekend for a long time after he grew up. After waking up, I picked up my mobile phone. PlatON’s WeChat public account pushed the first tweet in the morning. As a loyal fan of PlatON, you will not miss any article. Just click to view it. The eye-catching headline instantly awoke the confused Nobita: “PlatON’s Alaya Network (Alaya Network) is online today.” So immediately check the email to see if the node qualifications previously applied for are approved, and Daxiong is lucky to be qualified as an Alaya network verification node.
After washing in a hurry, take out the computer -> boot -> visit PlatON official document deployment instructions. Purchasing cloud hosts, initial configuration, etc. according to the document requirements, and completed the preparations before deployment.
First of all, there is a lock-up deposit of 10,000 ATP in Nobita’s pledge wallet address. At the same time, the official also provides a transaction fee (100 ATP balance) for the node to send the initial transaction. Daxiong uses the pledge address A to pledge his node to the Alaya network and become a validator node. At the same time, the designated reward address is: B. The pledge operation is completed through a pledge transaction, and the transaction consumes a fee of 0.0002 ATP, and the pledge deposit amount is 10000 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, earning rewards while making its own contributions to the network.
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:
Daxiong obtained lock-up funds
Nobita gets the balance of funds
Nobita sends pledged transactions to pledge nodes
Nobita’s node generates blocks to get rewards
Nobita’s transaction fee for sending transactions
The following will introduce in detail the corresponding main parts of economic activities. The main bodies involved in the above economic activities include: incentive pool contracts, pledge contracts, Nobita’s wallet address, and lock-up contracts.
Incentive Pool Contract
Scenario: After Nobita’s node produces blocks, the block rewards or pledge rewards 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.
In the PlatON incentive pool as one of the participants of economic activities, its main economic activity scenarios are:
Block reward: After the node generates a block, the incentive pool will give the corresponding reward
Pledge reward: During the settlement cycle, all validators participate in the distribution of verification rewards, which are given by the incentive pool
Punishment funds: Tokens deducted by the node due to illegal rules will enter the incentive pool
The accounting subjects corresponding to the incentive pool contract are mainly:
Therefore, from the analysis of the incentive pool contract as the main body, the economic activity generated by double-entry accounting is shown in the following form.
Description of accounting vouchers:
Block reward: Token flows from the incentive pool contract to the node reward address, the party whose balance increases is the reward address, and the party whose balance decreases is the incentive pool contract address;
Pledge reward: Token flows from the incentive pool contract to the node reward address, the party that increases the balance is the reward address, and the party that decreases the balance is the incentive pool contract address;
Penalty funds: Token flows from the pledge contract to the incentive pool contract address. The party that increases the balance is the incentive pool contract, and the party that decreases the balance is the pledge contract address.
Through the above double-entry accounting records, the inflow and outflow of Token held by the incentive pool can be clearly seen, and each specific economic activity can be traced in detail.
Note: The detailed node ID and reward address are not recorded in the figure. The subjects in the real record will bind the node ID and address to track the direction of the token more accurately.
Pledge contract
In PlatON, the pledge contract participates in all economic activities related to the pledge deposit. The main scenarios include:
Accounting subjects are mainly divided into:
According to the above-mentioned assigned subjects, the main economic activities are then analyzed for accounting vouchers.
Pledge or release pledge
Note: In actual situations, pledge and release of pledge will actually generate a lot of economic activities according to different scenarios and states, which corresponds to more complex double-entry bookkeeping. Only the simplest scenarios are listed here.
Description of accounting vouchers:
Pledge (balance): Token flows from the Daxiong wallet address to the pledge contract, the increase in the balance is the pledge contract, and the decrease in the balance is the Daxiong wallet address;
Releasing the pledge (balance): Token flows from the pledge contract to the Daxiong wallet address, the increase in the balance is the Daxiong contract address, and the decrease in the balance is the pledge contract;
Note: The detailed description of the use of 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 the relationship of economic activities.
Hedging contract
Scenario: Nobita uses the locked position amount for pledge operation, and the locked position 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, and lock-up release. The main scenarios include:
Accounting subjects are mainly divided into:
According to the above-mentioned assigned subjects, the main economic activities are then analyzed for accounting vouchers.
Pledge/Unpledge of Lock-up Amount
Description of accounting vouchers:
Pledge (lock-up gold): Token flows from the lock-up contract to the pledge contract, the party with the increase in the balance is the pledge contract, and the party with the decrease in the balance is the lock-up contract;
Release of pledge (lock-up gold): Token flows from the pledge contract to the lock-up contract, the party with the increase in the balance is the lock-up contract, and the party with the decrease in the balance is the pledge contract.
Nobita Meets Fat Tiger
The deployment was successful and the pledge was successful. Nobita successfully became a node of the Alaya network. At this moment, he was in a good mood and was still humming a small song. Seeing that the weather was good, Nobita decided to go out for a stroll, and went out bounced around. Coincidentally, as soon as he left the house, he ran into his former friend Fat Hu brother. Today’s Fat Tiger looked in a particularly good mood. He didn’t hit Nobita as soon as he got up. Instead, he enthusiastically came over and said he wanted to show Nobita a mysterious thing. Fat Tiger took out his mobile phone, clicked into an APP-ATON wallet after a meal, and proudly displayed his ATP balance in front of Nobita.
After some understanding, I learned that Fat Tiger’s ATP is rewarded by participating in community activities. Because of its high enthusiasm, it has received more rewards (including liquidity + lock-up). Nobita looked at Fat Tiger’s Token still lying in the balance account. As a senior node, Nobita’s opportunity to perform has come. He excitedly told Fat Tiger a few things:
ATP (flow, lock-up) can be entrusted to the verification node to obtain rewards;
When choosing a node, choose a node with a relatively high reward ratio, preferably a node with a reward ratio of 100%;
Rewards are issued once every settlement cycle, and you can see your rewards at the corresponding nodes in about 3 hours;
After the rewards are issued, they can be collected on ATON, and the rewards after receiving can continue to be entrusted.
After listening to Nobita’s prompt, Fat Tiger immediately operated on ATON. Filtered according to the reward ratio and selected Nobita’s node (the reward ratio of Nobita’s quality node is 100%). Select node -> entrust -> input amount -> adjust transaction fee -> input password -> send, Fat Tiger completes all operations in one go, and then waits for the reward. After completing the operation, the Fat Tiger wanted to check the rewards, so he went home directly.
After a while, Fat Tiger opened ATON again and found that he had already obtained the reward. At this time, he needs to take the reward action to transfer it to the address balance. Fat Tiger excitedly clicked to claim -> claim all -> adjust handling fee -> input password -> pack out blocks -> arrived account, looking at the new balance, Fat Tiger excitedly called and told 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 get ATP-transfer
Fat Tiger delegates Nobita’s node-delegate
Fat Tiger Gets Reward-Reward Distribution
Fat Tiger Receiving Entrusted Reward-Receiving Reward
Nobita’s node gathering delegation reward-block/stake reward
The lock-up gold obtained by Fat Tiger-lock-up
Panghu uses the lock-up amount commission-lock-up commission
Next, we will introduce in detail the corresponding main parts of economic activities. The main bodies involved in the above economic activities include: incentive pool contracts, pledge contracts, fat tiger wallets, and delegated incentive pool contracts.
Pledge contract
In the above scenario, the participation of the pledge contract in economic activities mainly includes:
- Entrustment / redemption entrustment: the user entrusts, the Token will be locked in the pledge contract;
Accounting subjects are mainly divided into:
According to the above-mentioned assigned subjects, the main economic activities are then analyzed for accounting vouchers.
Balance commission or redemption commission
Description of accounting vouchers:
Entrustment (balance): Token flows from Fat Tiger wallet address to pledge contract, the party that increases the balance is the pledge contract, and the party that decreases the balance is the Panghu wallet address;
Redemption commission (balance): Token flows from the pledge contract to the Fat Tiger wallet address, the party that increases the balance is the Panghu wallet address, and the party that decreases the balance is the pledge contract.
Entrusted incentive pool contract
In the above scenario, the economic activities that the entrusted incentive pool contract participates in mainly include:
Block delegation reward: block reward, the node will distribute part of the reward to the delegated users in proportion, and the Token temporarily exists in the delegated incentive pool contract;
Pledge commission reward: Pledge reward, the node will distribute part of the reward to the commissioned user in proportion, and the Token temporarily exists in the commission incentive pool contract;
Receiving delegated rewards: Users receive delegated rewards.
Accounting subjects are mainly divided into:
According to the above-mentioned assigned subjects, the main economic activities are then analyzed for accounting vouchers.
Block reward
Pledge reward
Receive delegated rewards
Description of accounting vouchers:
Block reward: Token flows from the incentive pool contract to the entrusted incentive pool contract, the party that increases the balance is the entrusted incentive pool contract, and the party that decreases the balance is the incentive pool contract;
Pledge reward: Token flows from the incentive pool contract to the entrusted incentive pool contract, the party that increases the balance is the entrusted incentive pool contract, and the party that decreases the balance is the incentive pool contract;
Receiving delegated rewards: Token flows from the delegated incentive pool contract to the user’s wallet, the party that increases the balance is the user’s wallet address, and the party that decreases the balance is the delegated incentive pool contract;
Hedging contract
In the above scenario, the economic activities that the entrusted incentive pool contract participates in mainly include:
Accounting subjects are mainly divided into:
Lock-up amount commission / redemption commission
User hedging
Lock release
Description of accounting vouchers:
Entrustment (lock-up gold): Token flows from the lock-up contract to the pledge contract, the party with the increase in the balance is the pledge contract, and the party with the decrease in the balance is the lock-up contract;
Releasing the commission (lock-up gold): Token flows from the pledge contract to the lock-up contract, the party with the increase in the balance is the lock-up contract, and the party with the decrease in the balance is the pledge contract;
User lock-up: Token flows from the user’s wallet address to the lock-up contract, the balance increasing party is the lock-up contract, and the balance decreasing party is the user’s wallet address;
Lock-up release: Token flows from the lock-up contract to the user’s wallet address, the party that increases the balance is the user’s wallet address, and the party that decreases the balance is the lock-up contract.
Note: The lock-up amount here is set according to the scenario and should belong to the lock-up address given to Fat Tiger’s wallet.
Ordinary address
In the above scenario, Fat Tiger, as an ordinary user, involves the following economic activity scenarios:
User transfer
Pay transaction fees
Note: The economic activities related to the user’s wallet address are actually included in the subjects that have been introduced. Here, the user’s wallet address is used as a perspective to cut in.
Accounting subjects are mainly divided into:
The main transaction-related scenarios have been described in other parts of the article, and only the core transfer and transaction fees are analyzed here. According to the above-mentioned assigned subjects, the main economic activities are then analyzed for accounting vouchers.
Transfer
Commission deduction
Description of accounting vouchers:
Transfer: Token flows from the address of user A to the address of user B (A may be the same as B), the party that increases the balance is the address of user B, and the party that decreases the balance is the address of user A;
Handling fee deduction: Token flows from the user’s wallet address to the node reward address, the party that increases the balance is the node’s reward address, and the party that decreases the balance is the user’s wallet address;
Accounting principles
According to the identity formula, at any time, the sum of the loan balances of all economic entities is equal to the total issuance of PlatON, and it is fair, just, open and transparent all the time. According to the recorded bookkeeping vouchers, we can summarize the sum of the loan balances of various entities, and the summed balance must always be equal to the initial total issuance + additional issuance.
Therefore, by combining accounting-related knowledge points, the PlatON system has been well verified, and the economic model of the entire system has been further strengthened.
