Mining Pool Reward

Pools are able to sweep EGLs when they produce a block with a gas limit within 1M gas of desiredEGL that is directionally correct.

Each time sweepPoolRewards() is called, the potential (i.e. maximal) Pool Reward is calculated, and then the exact amount is calculated depending on how close the block’s gas limit matches desiredEGL.

The potential Pool Reward in each block is calculated as a small percentage of the remaining Pool Reward - specifically, potentialReward =remainingPoolReward * 0.0000004. Thus, the potential reward immediately after the launch, while the remaining Pool Reward is 1.250B EGLs is 500 EGLs.

A pool sweeping EGLs will be awarded 25% of the potential Pool Reward for mining a block with a gas limit directionally correct up until the gas equals the desiredEGL plus 10,000.

The remaining 75% is awarded based on how close the block’s gas limit is to the desiredEGL. A pool will receive all 75% for a gas limit which exactly matches desiredEGL, 0% if it is at the current gas limit at the time of tally vote, 37.5% for a gas limit which it is half way to the desiredEGL.

For example:

• desiredEGL = 16,000,000

• tallyVotesGasLimit = 15,000,000

Thus,

• Direction = up (16,000,000 - 15,000,000 >0)

• Buffer = 10,000

Thus if a pool mines a block that has a higher gas limit than the previous block, they will receive 25% of the reward EGLs as long as the block is less than 16,010,000 (desiredEGL + buffer). If a pool mines a block between 15,000,000 and 16,000,000, she will receive a portion of the remaining 75% of the miner reward and if she mines a block at 16,000,000 she will receive all 100% of the EGL reward.

In this example:

Block’s gas limit	Direction	% of potential pool reward
<15.0M	Down	0%
15.0M	Up	25%
15.5M	Up	25% + (75% * 50%)
16.0M	Up	25% + (75% * 100%)
>16.0M, <= 16.010M	Up	25% + (75% * 100%)
Any number	Too high	0%

The desiredEGL is considered to be "the same" as the current gas limit if desiredEGL is within 10,000 of the tallyVotesGasLimit (see Calculating desiredEgl). In this case, if a miner produces a block +/- 10,000 from the tallyVotesGasLimit it will receive 100% of the miner reward.

For example:

• desiredEGL = 15,005,000

• tallyVotesGasLimit = 15,000,000

Thus,

• Direction = same (abs(15,005,000 - 15,000,000 ) <10,000)

• Buffer = 10,000

In this example:

Block’s gas limit	Direction	% of potential pool reward
<14.995M	down	0%
=>14.995M, <= 15.015M	same	25% + (75% * 100%)
>15.015M	up	0%

For the first week of voting (before the 1st desired gas limit has been set by EGL holders) the desired gas limit will be equal to the gas limit of the block that had the create contract transaction (i.e. the current gas limit). Thus, during the first week miners will only need to call the sweepPoolRewards()to claim EGLs.