1. Operation Cycle
 
The Collator system has its own running cycle, 600 blocks in a round, each round takes about 2 hours, and the cycle is related to the operations of reward settlement, addition, and unbonding.

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• Leave Candidate Pool — 84 rounds (168 hours)

• Remove Nominations — 84 rounds (168 hours)

• Reward distribution (after the current round) — 2 rounds (4 hour)

2. Collator

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   2.1 Maximum number of active Collators and candidates

     

           Collator             Stage 0          Stage 1            Stage 2

          Candidate           unlimited         unlimited          unlimited

            Active Collator     16                     32                     64

    

   2.2 Bonding parameters (Collator)

    

• Candidate minimum bond (self bond) — 5,000 BNC

• Collator maximum bond (self bond) —  Unlimited

• Minimum Total Delegating Amount for Active Collator (Delegating)  — 5,000 BNC

            

   2.3 Others

    

• Collator exit — 84 rounds

• Maximum Number of Delegators —  Unlimited

• Add Self-bond  — Effective immediately

• Reduce Self-bond — 84 rounds

• Reward Distribution —  Collectors receive rewards for the first 2 rounds at the end of each round (600 blocks)

• Punishment  — No Penalty, reward deduction if there is missing for effective block producing.

         

3. Delegator

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  3.1 Bonding parameters (Delegator)

    

• Minimum Delegating Amount— 50 BNC

• Maximum Delegating Quantity —  Unlimited

            

   3.2 Others

    

• Minimum delegating value that can be rewarded — The top 300 Delegators of each Collator can get the reward, more than 300 Delegators do not count the reward.

• Maximum number to delegate Collators — 350

• Add Delegating  — Effective immediately

• Reduce Delegating — 84 rounds

• Revoke Delegating —  84 rounds, no minimum revoke limit ((staking rewards continue to be received during unbonding period)

• Reward automatic re-delegating  — Not available yet​

Not available yet

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4. Collator incentive ratio

    

      Total 800,000 BNC/Year            Proportion         

      Collator Commission                   10%

      Delegator                                     90%

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5. Reward Calculation 

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Bifrost network reserved 5% (4,000,000 BNC) of total issurance to incentivize Collator mechanism for 5 years (800,000 BNC/year), with no inflation. The reward for each Round is a fixed 180 BNC. The reward calculation method is as follows.

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According to the incentive ratio, the reward for each block is:

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Collator: 180/600*10% = 0.03 BNC

Delegator: 180/600*90% = 0.27 BNC

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If a collector's total delegating amount is 100,000 BNC and it is in the 64 Active Collator set for the whole year, the average revenue of the Collator is:

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Collating Reward: 800,000 x 10% / 64 = 1,250 BNC

Self-bond delegating Reward: 800,000 x 90% / 64 x 5,000/100,000 = 562.5 BNC

Total Revenue: 1,250 + 562.5 = 1,812.5 BNC

APR: 1,812.5/5,000 = 36.25%

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