The Second Stage of Updating the Economic Model of Providing

Dear Bitbon System Users,

On July 23, 2024, as previously announced in the news, the first stage of updating the economic model of providing[i] was implemented, which included changing the principle of forming remuneration for Users in the role of a Registrator[i] for ensuring the Bitbon System[i].

The second stage of updating the economic model of providing is scheduled for October 14, 2024. This stage includes:

• optimization of the model for Users’ participation in providing in the role of Registrators and updating the principles for calculating remuneration;
• increasing verification requirements for Bitbon System Registrators.

Optimizing the model of participation in providing implies the formation of fairer and more economically advantageous conditions for Users who are actively developing their Registrator pools, participating in recording deals[i] in the Bitbon System in order to certify a legal fact by reaching consensus on the Community PoS algorithm and accepting remuneration for this. To do this, 2 new types of transactions will be added to the providing service: a transaction for suspending participation in providing, and a transaction for resuming participation in providing. To the Assetbox of the Registrator pool, which has not accepted remuneration for 5 providing periods (15 days), a special transaction will be made from the providing fund[i], which will temporarily suspend the participation of such Assetbox in providing. As a result, Bitbon units in this Assetbox will no longer be taken into account for calculating the power indicators of the Registrator pool, and will also not be involved in calculating remuneration for ensuring the Bitbon System decentralization. Thus, the remuneration for the providing period will be distributed only among active Registrators, which will ensure an increase in the amount of remuneration they receive. Also, the maximum time for accepting a specific transaction with remuneration for participation in providing will be 9 days.

It is important to note that suspension of participation in providing is a personalized event and does not lead to a change in the structure of the Registrator pools.

The described conditions will apply to all Registrator pools in the Bitbon System at the time of the update on October 14, 2024. This means that during the next period after the update of providing period (October 16 – 19, 2024), all Registrators who have not accepted remuneration for participation in providing for more than 5 providing periods (15 days) will receive a transaction to suspend their participation in providing.

In order to ensure a sufficient level of awareness about this update and its features, all Bitbon System Users who are currently participating in providing in the role of a Registrator will receive a personal notification to the email address specified in the account[i] of such Users.

To resume participation in providing, Users will need to send a special transaction to the Assetbox of the providing fund.

Increasing verification requirements implies that in order to become a Registrator in the Bitbon System, as well as accept remuneration for participation in providing, the User’s verification[i] level must correspond to the “Personal” ID Passport category[i]. Therefore, we recommend that all Users who take part in providing in the role of a Registrator make sure that their level of verification meets the required level.

At the time of this update, changes will also be made to some Appendices to the Bitbon System Public Contract, namely: “Bitbon System Provider” and “Providing in the Bitbon System: Economic and Legal Decentralization of the Bitbon System”.

Moreover, we separately inform you that the implementation of the first stage of updating the mechanism for calculating the base rate in the Bitbon System is planned for the middle period of September 2024.