Mining rewards distribution

In this part, we analyze the process of mining reward distribution on the Binance Smart Chain (BSC), known for its affordability with lower transaction costs compared to other blockchains. Rewards, generated by sealing orders, are distributed to accounts that could be owned by miners or coordinators.

As the multi-signature setup, adopting the k/n configuration ensures robustness in our operations, even in the face of up to f faulty nodes. We maintain the capacity to approve and execute transactions as the choice of k ensures a consensus requirement.

Aggregator nodes, using the Practical Byzantine Fault Tolerance (PBFT) consensus algorithm, collate the rewards for each account and update this information within the smart contracts. To safeguard the integrity of the distribution process, a multi-signature system is employed during the transactions. The associated cost of updating an account is computed as: Cost = Gas Price * Gas Cost * Token Price

Summary of function executions on BSC Mainnet

Function	Gas Cost	Executions	Tokens	Cost
proposeReward	86,875	Once	0.000396	$0.098
confirmReward	45,371	$k$ times	0.000207	$0.051
executeReward	161,888	Once	0.000739	$0.18

Note: The Cost and Tokens values are calculated based on the current token price and gas price. As of June 20, 2023, the gas price on BSC is 4.562 Gwei, and the token price is $246.2.

Here we present a detailed cost analysis associated with executing key functions for reward distribution on the Binance Smart Chain (BSC) mainnet. Each function's cost is calculated in tokens and their corresponding USD value. By summing the costs of proposing, confirming (with 30 confirmations), and executing a reward, we can estimate the total cost our network spends to distribute rewards to a single account. Given the gas price on BSC (4.562 Gwei as of June 20) and the token price of ($246.2), this coordinator's cost is approximately 0.007582 tokens or ($1.87) per account. The estimation can help us in understanding the scalability and economic feasibility of implementing reward distribution mechanisms on Layer 2 networks on the BSC. Moreover, it's necessary to note that these costs may fluctuate due to variations in gas and token prices.