Ontology Foundation has just published a release uncovering its decision on the over 37 million ONT staked in 2019 and the new rules it is proposing for its bonus.
In July 2019, the founder of Ontology blockchain technology, during a live AMA session on YouTube, announced the decision of the blockchain core team to stake 37,500,000 ONT, and it was successfully completed that month.
The action spurred series of questions from the project’s community, demanding clarity on the deed and what would become of the staked funds.
However, after issuing different releases to explain the action vividly, the blockchain foundation has now aired it’s the decision it would take on the staked funds.
Ontology said although the 37,500,000 ONT staked would still receive the Foundation bonus, it would be refunded to the bonus pool immediately.
“In terms of the 37,500,000 ONT staked by the Ontology team in 2019, it will still receive the Foundation bonus but the received amount will be returned back to the bonus pool immediately. In other words, the staked 37,500,000 will not keep any of the Foundation Bonuses received, which will enlarge the remained bonus pool,” Ontology said.
Ontology Foundation New Bonus Rules
Ontology had earlier disclosed via its social media channels that it would update its bonus rules from February 2020 even though the December 2019 and January 2020 rules will not be affected.
The blockchain foundation proposed 2 new rules include:
- ONG bonuses would be distributed squarely amongst each staked ONT in accordance with the total effective ONT amounts.
- Bonuses would be disbursed to top 49 nodes, and the nodes would portion the bonuses to their stakers based on the ratio they set.
Ontology aims at using this to ensure that nodes with healthier services and ratios get more staking from users, guaranteeing more balances in the node bonuses, as well as enhancing of fair competition of PoS.
Ontology Foundation said it observed that the old model would make users choose consensus nodes or official nodes, and such is not healthy for the long-term development of the community.
Nevertheless, the existing consensus node model remains the same, the foundation will continue to share 10 million ONG among top 49 nodes annually for three years, and the network fees reward will still be shared equally among all consensus and candidate nodes.