POA Forum

Proposal to Support POA Mania with a Block Reward Adjustment

Dear @poa-validators,

We are requesting your help in launching the first official POA DApp on the POA Network - POA Mania. Help will include app testing and feedback, as well as a request to halve the block reward and emission fund reward to support the application. Please read on for more details; any comments, feedback etc are welcome on this post.

Note that we’ve been working on this app for some time, before the COVID-19 crisis began. We believe this crisis will ultimately bring many more people to blockchain technologies. POA Mania provides a soft landing for people interested in learning about blockchain and crypto, and while it may result in fewer POA for everyone at the start, we believe usage will increase POA value in the long term.

View and try out the current version of POA Mania on Sokol:

A telegram bot has been created to provide updates. Telegram channel:

POA Network

Despite the current extreme challenges in the marketplace, POA Network, as a blockchain and R&D organization, remains strong. We have survived where many projects have failed, and we believe our longevity is due to several factors. These include:

  • POA Network fundamentals: Fast block times, interoperability, no down time, stability, known and trusted validators (benefits of a private chain within a public setting), low gas fees etc.
  • Developer culture: A team of developers respected in the community who continue to bring tangible improvements to the Ethereum ecosystem (BlockScout, TokenBridge)
  • Validator dedication: Validator incentives have become much smaller but validators continue to make network upgrades, pay for infrastructure, and support the chain in what has become largely a voluntary capacity. Validators are the heart and soul of the POA Network chain.

Many applications have successfully deployed to the network. Some have moved on, but others have stayed and thrived (eg Kauri https://www.poa.network/use-cases/content-curation). In addition, new projects continue to discover the advantages of using the POA Network (ie Ethernal.World https://www.poa.network/dapp-spotlights/ethernal.world )

POA Mania

With this in mind, we have been working on the first official POA DApp (not including governance & infrastructure applications) which will be deployed to the POA Network. The DApp is called POA Mania.

POA Mania is a no-loss lottery where any POA holder can stake POA for a chance to receive rewards without risking token loss. The more tokens a user puts into the lottery, the greater their odds of winning a prize. The lottery will work similarly to PoolTogether (the inspiration for this application which currently holds more than 700k worth of DAI in its contract) but will differ in important ways.

  1. PoolTogether rewards come from interest generated by all DAI locked in the lottery contract. This requires large deposits and a substantial amount of time to accumulate a meaningful reward pool (1 week cycle). POA Mania rewards will come from chain emissions. With the proposed model, 16,000+ POA will be distributed to winners daily along with an opportunity to win a jackpot amount.

  2. PoolTogether relies on a centralized authority to determine the winner. POA Mania uses random numbers created on-chain to choose the winners. POA Mania is a fully decentralized application, not subject to any centralized manipulation.

  3. With PoolTogether there is 1 weekly winner. POA Mania offers 3 daily winners (1st, 2nd and 3rd place) for a total of 21 winners per week.

  4. PoolTogether rewards are stable tokens. POA Mania offers volatile token rewards, increasing speculative opportunities.

  5. PoolTogether operates on a defined weekly timeline. POA Mania allows anyone to close a round after a preset minimum amount of time has passed (set to 1 day on POA Network). The Round Closer receives a portion of the pot. This creates a ‘game within a game’ which increases excitement and interaction.

In the current landscape, we think POA Mania can open the doors to new POA users while rewarding current token holders. There is no risk to participate and several winners are selected each day. As people are at home and looking for alternative ways to interact with money and learn about blockchains and crypto, POA Mania will create an opportunity for users to win cryptocurrency without taking on additional risk.

It’s important to note that POA Mania is not a gambling application - participants cannot ever lose any amount of POA. POA value will change (due to market forces) but the amount of POA a participant pledges to the application cannot decrease unless withdrawn by the participant. The prizes are created solely from POA emission funds, and there is no cost to participate or deposit/withdraw funds (other than the cost of performing an on-chain transaction). Participants will have the ability to their funds at any time, including their initial deposit and any winnings they have accumulated.

Block Reward Adjustment

To support the POA Mania application, we propose to adjust the current block reward structure. This will enable reward incentives for POA token holders through a no-loss lottery application. We believe this action, while curtailing the amount of tokens validators receive for validating blocks, will ultimately increase POA token demand and POA token price.

Currently, each sealed block results in 1 POA sent to the block validator and 1 POA sent to the emission fund. We propose to halve the amount of POA that goes to the emission fund to .5 POA, and we are asking validators to match this amount and halve their block reward to .5 POA. In this scenario, the lottery fund will receive 1 POA per block, the emission fund will receive .5 POA per block, and the block validator will receive .5 POA.

Current per bock Proposed per block
Validator 1 POA 0.5 POA
Emission Fund 1 POA 0.5 POA
POA Mania Lottery DApp 0 POA 1 POA

This reward halving will directly benefit POA token holders who participate in POA Mania, which in turn should benefit validators and the emission fund (assuming POA token price responds to an increase in usage and demand). Blockchain incentive halvings are common events which typically result in increased token prices. As you know, POA has lost considerable value in the marketplace, and we are looking for ways to stimulate chain usage with applications that will increase demand for POA. We think POA Mania is this type of application.

We hope you will help us test POA Mania on Sokol, and welcome your feedback and ideas to make it an even stronger application. The success of PoolTogether shows that users are interested in no-loss lottery DApps. If we can make something that is more exciting for users and offers real-world value, we believe it can bring a lot of new users into the POA Network.

We plan to announce and market POA Mania to the larger community, and utilize Telegram and Discord to update users daily with new round announcements and a list of winners. We are very excited about the possibilities of POA Mania and its potential to increase POA token long-term usage and price.

Please let us know any questions or concerns you may have in the comments section. We look forward to the discussion. If you agree with this approach, we will prepare instructions on how to reallocate block rewards.

POA Network


Check out POA Mania documentation where you can find:

  • Detailed description
  • Rules of the game
  • Winners selection algorithm
  • Frequently Asked Question
  • Comparison with Pool Together
    … and more!

Haven’t really looked at this in depth - but will shortly. Always interested in new ideas after all.

One comment, right off the top of my head. This is asking to fundamentally change incentive structures, so proceed with caution.

Maybe bake in a sunset cause.

Maybe this new idea is different and well received by the larger crypto community due to it being seen as innovative and different relative to other projects.

Second comment: I think anything that tries to move the needle and promote this amazing network is great.

1 Like

One comment, right off the top of my head. This is asking to fundamentally change incentive structures, so proceed with caution.

The proposal is about redistribution of the emission and not about changing the total emission. This will include token holders into the emission model. Homeostasis of public networks should have interests of token holders in place, e.g. in a form of staking and reward distribution.

No-loss lottery with a volatile token might create a positive feedback loop for the token economy.

Maybe this new idea is different and well received by the larger crypto community due to it being seen as innovative and different relative to other projects.

Pooltogether got a lot of attention in the crypto community. Here is our comparison of POA Mania and Pooltogether

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I dig it, I understand …

The more and more I think about this, the more I’m liking this. (Forget my comment about the sunset - that was me typing before I gave it a good think.)

  1. I think that this would be something that would really set the project apart from other projects

  2. Demonstrate the validator model at making changes / proving the dynamism of the network.

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We are asking to change incentive structure on Sokol testnet. It can be reverted back without any complications.

Love to hear from validators, what they are thinking about this proposal…

Personally, the more I mull this idea over, the more I see the potential for promoting the network and bringing along with it a wider community.

DeFi has/is/(and probably will be) a concept that has captivated so many that might have otherwise not been interested in decentralization technologies. Gathering up these folks and introducing them to the network, seems to me like a real shot at giving them the help/spark to dream up other (side) use cases.

Eg: Just finished up teaching a UC, Irvine class and one person in particular was completely new to the space. However, the more she saw these tools/technologies in use - she came to realize how they could be used to assist in her company’s future (which was in supply chains around fashion garments). So here is a person that was able to take what she experienced and then educate her management team - (thanks token wizard by the way, I know…but I still think this is a wonderful teaching tool still)…

I digress - love to hear from validators about this/general discussion. Next steps? Is a proposal in the works? Etc…the whole nine yards if you will.

We will send a questionnaire on emission distribution to validators. The next step is create a proposal to update the emission contract on Sokol.

Provided that testnet shows that the code is complete, when might be the intended rollout on mainnet?

I honestly think faster mainnet might be a bit better, as any deep issues with either the code, unintended callbacks, general overlooks with how other smart contracts behave with… probably won’t be caught on the testnet (for lack of an incentive.) I do think that testnet will help understand general mechanics and ‘larger’ picture code issues.

But in the meantime, maybe validators could talk more about this and how it might help with the overall network’s standing in the larger community. I think stake hodl’ers would appreciate.

proposed change is in BlockReward contract which is well tested and working on POA since 2017

Hello @poa-validators,

Please, create a new ballot on Sokol for changing the current RewardByBlock (BlockReward) contract implementation to this one: https://blockscout.com/poa/sokol/address/0x8EAb251B959af49Ab5D3A8fb43F43ea35Ce5ab03/contracts

This new implementation assumes the following emission distribution:

  • 1 SPOA is accrued to block producer (validator)
  • 0.5 SPOA is accrued to POA Mania lottery proxy contract
  • 0.5 SPOA is accrued to EmissionFunds address (in Sokol case it will be MoC’s address 0xE8DDc5c7A2d2F0D7a9798459c0104fDf5E987ACA)

The new emission distribution is defined on the lines 149-153 of the new BlockReward implementation: https://blockscout.com/poa/sokol/address/0x8EAb251B959af49Ab5D3A8fb43F43ea35Ce5ab03/contracts

To create a new ballot, switch your MetaMask to Sokol chain, then open the page https://voting.poa.network/poa-dapps-voting/new and click on Modify Proxy Contract Ballot. Set Proposed Address field to 0x8EAb251B959af49Ab5D3A8fb43F43ea35Ce5ab03 and Contract Type to RewardByBlock. Don’t forget to set ballot’s description and set Ballot End time so that it would be enough to let other validators vote (e.g., 1 week).

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Ballot created. @poa-validators, please go to https://voting.poa.network/poa-dapps-voting/ on Sokol and vote.


Hi @poa-validators

The Sokol Ballot for BlockReward adjustment is still several votes short. This vote requires at least 8 votes (As opposed to 5 needed for consensus votes) Please participate in the governance process and vote if you haven’t already.

As previously mentioned, we will not rush BlockReward adjustment to a vote on POA core. We have deployed a version of POA Mania to Core to start collecting stats and will run in tandem with the Sokol version to test the different mechanisms and catalog usage and statistics. Thanks for your attention!

Vote here: https://voting.poa.network/poa-dapps-voting/


The proposed ballot to adjust Block Reward did not pass in time.
If you decide to vote for it again you can use the same parameters as before.

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It would be great to create one more ballot to support POA Mania with a Block Reward Adjustment on Sokol.

The address of BlockReward on Sokol is the same: https://blockscout.com/poa/sokol/address/0x8EAb251B959af49Ab5D3A8fb43F43ea35Ce5ab03/contracts - this implementation doesn’t contain the bug we mentioned in Critical bug in Core/Sokol related to ballot's finalization

So, the same instruction can be used again: Proposal to Support POA Mania with a Block Reward Adjustment


Hi @igorbarinov, I wonder if the min threshold number gets dynamically changed if the total number of validators changed after the ballot was created but before it expires?

Unfortunately, there is no dynamic threshold. After finalization of all pending ballots threshold will change to 7 from 8. It worth to wait :smiley:

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We are good to create a new ballot for the proposal one more time. Thank you!

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Hello fellow @poa-validators, I re-submitted the ballot to support POA Mania with a Block Reward Adjustment on Sokol. We need 7 votes to pass. The ballot will run for 96 hours. Please cast your vote.