Zinnia will use a hybrid consensus mechanism from launch.
In a hybrid system, miners can use either PoW or PoS as their mining algorithm so that they can switch back and forth depending on which one is most profitable at any given moment. Here's how it works;
- 1.PoW miners create new blocks with transactions to be added to the blockchain.
- 2.PoS ticket holders vote on whether or not to confirm these new blocks, purchasing votes by staking a portion of their currency.
- 3.Votes are chosen pseudorandomly to determine the validity of the newly created block.
- 4.The block is confirmed and added to the blockchain when a certain amount of the selected votes are affirmative.
- 5.PoW and PoS miners receive a percentage of the block reward in exchange for their services and the remainder is reserved for the DAO treasury.
The objective of hybrid PoW and PoS systems is to capture the benefits of the respective approaches and use them to balance each other's weaknesses. As a result of the dual-system in PoW/PoS, the cost of attacking the network is significantly higher. Not only do you need to contend with both technologies, but it's considerably more challenging to break into two systems than one.
Accessibility - Combining PoW and PoS consensus mechanisms creates a more significant community engagement across the network.
Fairness - all users, regardless of experience, have an equal ability to vote based on their stake in the currency.
Security - with PoS validating PoW, the ability for a 51% attack to be launched and the potential for fraudulent miner activity is reduced.
Stability - encouraging the community as a collective to vote on protocol changes increases the strength of the network and creates an opportunity for a Decentralized Autonomous Organisation (DAO).
Staking to secure the network on Zinna is very different from staking on most other chains. This is because staking and DAO voting go hand in hand.
To stake ZINN, participate in securing the network, and vote on DAO proposals, a license is required from the DAO.
Licenses entitle the holder to participate in network consensus and vote on any proposals made to the DAO during the period held.
In exchange for their participation, license holders are rewarded with a share of the block reward for the duration the license is valid.
Licenses are purchased by locking up Zinn for a specific period; a small issuance fee must also be paid to the DAO.
Once the lock-up period has ended, the ex-license holder regains full access to their locked coins.
Custody of the locked Zinn remains with the owner at all times.