David Edwards
Tari is an innovative blockchain protocol that’s set to transform how we handle digital transactions and decentralized apps (dApps). It’s crafted for high performance and scalability using Rust, a programming language celebrated for its safety and efficiency. As an open-source project, Tari offers unique privacy features to protect user data, paving the way for many new applications across different industries.
Partnership: Pantera Capital, Multicoin Capital
Step-by-Step Guide:
- Go here
- Complete quests (some tasks can take up to 5 hours to verify)
- Invite friends
A few words about a project:
Let’s get straight to the point. The Tari network consists of two layers: Layer 1, also known as the Minotari network, and Layer 2, known as the Ootle network. Layer 1 is secured using a proof of work system, where miners are rewarded with Minotari tokens (XTM). Layer 2 is a Byzantine fault-tolerant network powered by Tari tokens (XTR).
The initial supply of XTM is set at 21 billion, with an annual tail emission of 1%. Of this initial supply, 6.3 billion tokens, or 30%, will be pre-mined and subject to lockups and vesting schedules. These pre-mined tokens will support protocol infrastructure, community incentives, grants, and allocation for contributors and supporters. After the pre-mine, all tokens emitted by the protocol will go to miners who secure the Tari network.
There’s a strong link between XTM and XTR tokens. XTR is created by burning XTM at a 1:1 ratio. A transaction fee-oriented burn mechanism on the Ootle network helps maintain overall token supply balance. Let’s begin by looking at the Tari Layer 1 proof of work model and XTM.
Proof of Work Distribution:
Proof of work, introduced by Satoshi Nakamoto for Bitcoin, was once the gold standard for blockchain security. Although it has recently been overshadowed by proof of stake mechanisms, we believe there will soon be a renewed appreciation for the Nakamoto consensus. This consensus combines proof of work with the longest chain rule to maintain network agreement on the blockchain state. On Day 1, anyone can mine Minotari, giving everyone a chance to participate in the network and shape its future. This approach ensures a fair distribution, unlike many recent projects where early investors or airdrop recipients had an advantage. To earn XTM, you just need to contribute raw hash power to the network.
Tari miners earn XTM for each block they mine, with block rewards decreasing over time. For the first 12 years post-mainnet launch, the Tari emission curve will dictate mining rewards. After 12 years, a tail emission will ensure miners are compensated indefinitely, with the XTM supply increasing by 1% annually. Tari miners receive 100% of block rewards and Layer 1 transaction fees.
