Staking/Block Rewards

MELD blockchain operates using a Proof of Stake model with a unique and effective solution for generating staking rewards. In traditional Proof of Stake models, block rewards are generated from transaction fees paid by users., with the user selecting the amount they wish to pay for their transaction to complete. This creates a misalignment between users who want low fees, and staking validators who want high fees.

In turn, during times of high network volume, transaction fees can rise sharply meaning users have to pay high fees to complete a transaction or may be forced to wait until network traffic has dropped.

In MELD, staking rewards for network validators are instead generated using a portion of the profits generated from the Lending & Borrowing (L&B) platform.

This aligns the interests of both users and staking validators as increased traffic through the L&B platform will increase the staking rewards, without increasing the fees paid for individual transactions.

In this way Gas, while still present in MELD, acts as a purely network protective solution in preventing DDoS attacks and reducing the risk of issues due to the Halting Problem.