We’re excited to share how the introduction of nodes has transformed the mining process within the StarsHash ecosystem.
To make token distribution even more fair and balanced, we’ve implemented significant changes to mining algorithms.
### Why Are Nodes Important?
Nodes are essential components of the blockchain that:
- Maintain the stability of the network.
- Validate and add new blocks.
- Aggregate the hash rates of all participants within the node.
Important: A higher hash rate within a node does not guarantee a greater chance of mining a block. Each block is calculated at the level of an individual miner’s device.
### Current Operational Mode:
Currently, nodes are configured so that 100% of the block reward goes to the miner who mines the block.
### Reward Distribution Settings:
Each node can configure how rewards are distributed between:
- The miner who mined the block.
- The owner of the node.
- All participants within the node.
Examples of reward distribution:
1) 50% goes to the miner who mined the block. 10% goes to the node owner. 40% is distributed evenly among all participants.
2) 100% goes to the miner. 0% goes to the node owner and other participants.
3) 4% goes to the miner. 1% goes to the node owner. 95% is distributed evenly among all participants.
We believe the market will find an optimal balance through supply and demand.
### Historical Context:
In Proof-of-Work networks like Bitcoin and Ethereum (prior to the transition to PoS), the likelihood of successfully mining a block decreased as the number of miners increased.
To stabilize rewards, pools were created to combine the hash rates of participants. Rewards were distributed proportionally to each participant’s contribution.
StarsHash builds upon this idea, allowing participants to unite through nodes, ensuring transparent and fair reward distribution.
### Experimental Feature:
This algorithm is currently being tested in the Test Net and is designed to make token distribution even more fair and balanced.