Frequently Asked Questions

When will DRIP list on exchanges - and which exchanges?

The first exchange to be listed on in June 2018 was planned to be CryptoBridge and the next priority for the funds raised via mining was for listings on masternodes.online and masternodes.pro. The deposit and withdrawal issues faced by CryptoBridge for a short while during June 2018 resulted in us choosing to list on stocks.exchange first instead. The two masternodes website listings were completed as planned.

With the above complete, and the CryptoBridge issues resolved, we are going to set our sights on back on a CryptoBridge listing. This is still intended to be completed during June 2018.

Our roadmap will have us looking at larger exchanges – but the above is the short-term goal. The larger exchange listing will begin with Cryptopia, or similar, and we expect to have a proposal in place for this during Q4 2018

What is the see-saw algorithm?

Most coins have a set reward for masternodes and a set reward for stakers/miners. This can end up with rewards heavily skewed towards one group or the other.

DRIP’s seesaw algorithm, which will be operational for 6 months, aims to split rewards evenly between masternodes and stakers – with a slight skew towards masternodes to cover their server costs.

Basically, when we have too many stakers and not enough masternodes, masternode rewards get dis-proportionally higher. This results in a lot of stakers deciding to operate masternodes instead.

The opposite is also true – too many masternodes cause staking rewards to increase and this results in masternodes shutting down and staking instead.

The end result is that rewards will not be heavily skewed towards either group.

What is an orphan block?

Basically, if you receive a reward that is labelled an orphan block, it means you didn’t actually receive a reward.

Orphaned blocks are an occasional occurence that happen with any decentralized blockchain. New blocks are generated by the nodes on the DRIP network, which include masternodes and staking wallets and any other wallets that are online at that time. This protocol helps to ensure that the network reaches agreement (consensus) on what is the next block in the blockchain, and sometimes multiple nodes create blocks at right around the same time. Some nodes may not be aware that another has already made the next block and they may make one as well. This consensus process is one of the core principles in the design of bitcoin, and every other blockchain, to ensure the that coins cannot be spent twice.

Once the network has reached consensus on which new chain of blocks is the “winner”, any others are considered orphaned blocks. They are called orphans because the blockchain keeps the parent to child block relationships from the beginning to the end of the blockchain, and these other blocks no longer have a parent.

This brings us to staking rewards. Each newly generated block gives the staking reward to an address on the network who was staking at that time. However, if that block turns out to be an orphan, the staking rewards from that block are also an orphan and therefore are not real, spendable DRIP, because the staking reward for that block was already given out on the block that reached consensus. This is one of the reasons why staking, retailer and masternode rewards require more confirmations before you can spend them compared to other DRIP transactions, to allow time to work through the consensus process.

This should only happen to you occasionally. Some argue that it would be simpler to just hide orphaned rewards but, because you might not immediately know it is orphaned, that could be confusing – you might see the reward show up and then disappear. Showing them and marking them as orphans is a much more transparent solution.

As a computer will be slower to generate a block when the CPU/memory is in high-demand for other processing, DRIP stakers may see an increase in orphan blocks if their CPU/memory is being used heavily in other processes, e.g. CPU miners will generally see a higher frequency of orphan blocks than most.