CheckDot — BlockChain — PoS+PoB

5 min readDec 11, 2023

The project celebrated its 2nd anniversary last November. We initially embarked on this DeFi journey as decentralized verification project and later shifted our focus to insurance, achieving success with a fully operational insurance protocol.

However, this protocol has limitations regarding interoperability. Consequently, the final phase of the project aims to develop a blockchain that will act as a validator and liquidity manager across all the blockchains where the insurance protocol will be deployed. This article explores the necessary developments to create a blockchain that remains functional over time, appeals to new investors, and entices validators in the coming years.

Current CDT Supply

Currently, our maxSupply stands at 10,000,000 CDTs, with a totalSupply of 9,897,808 CDTs, leaving a margin of 102,192 CDTs available for rewards to the blockchain’s validators. Utilizing the provided formula, approximately 2,232.1 CDTs would be generated per block, serving as rewards to be distributed among the validators securing the blockchain.

Applying a block generation rate of one block per hour and following a halving schedule of once every four years, akin to Bitcoin, this would result in a daily total of 53.5704 CDTs generated at the current price. This equates to a daily value of $16.07112 in wages to be shared collectively among all validators.

List of halvings with 10,000,000 maxSupply

Considering this perspective, it becomes crucial to explore a solution that enables us to maximize rewards per block, providing a significantly more appealing APY for staking during the initial years.

CheckDot BlockChain Halvings

Similar to Bitcoin, CheckDot follows a block reward halving mechanism every four years. The CheckDot blockchain is designed to implement a reward system that reduces block validator rewards by half every four years, aligning with the established model in Bitcoin.

A proposed solution to enhance the appeal of validating and staking for long-term CDTs involves implementing measures that make the process more enticing over an extended period

List of halvings with 21,000,000 maxSupply

Following extensive discussions with CheckDot whales, we proposed a buyback of a portion of their CDTs for burning, aiming to transition to halving level 2 as depicted in the image above. However, the proposal did not gain unanimous approval.

Consequently, the optimal solution is to increase the maximum limit of existing CDTs from 10,000,000 to 21,000,000, while maintaining the current number of CDTs at 9,897,808. This adjustment will enable us to provide more appealing rewards to block validators during the initial years of the blockchain. Visual aids in the form of diagrams are provided below to facilitate a comprehensive understanding of the concept.

In the proposed schema, outlining the CheckDot blockchain launch in 2026, the inflation of CDTs is projected over the upcoming years:

2026 to 2027:
Inflation: 3.15%
Duration: 92 days
Reward: 300 CDT per block shared among Stakers
Resulting in an increase from 9,837,808 to 10,500,025 CDT

2027 to 2030:
Annual Inflation: 5% (1,312,501 additional CDTs per year)
Duration: 1,458 days (4 years)
Reward: 150 CDT per block shared among Stakers

2030 to 2034:
Annual Inflation: 2.5% (656,253 additional CDTs per year)
Duration: 1,458 days (4 years)
Reward: 75 CDT per block shared among Stakers

2034 to 2038:
Annual Inflation: 1.25% (328,125 additional CDTs per year)
Duration: 1,458 days (4 years)
Reward: 37.5 CDT per block shared among Stakers

2038 to 2042:
Annual Inflation: 0.625% (164,067 additional CDTs per year)
Duration: 1,458 days (4 years)
Reward: 18.75 CDT per block shared among Stakers

2042 to 2046
Annual Inflation: 0.3125% (82,035 additional CDTs per year)
Duration: 1,458 days (4 years)
Reward: 9,375 CDT per block shared among Stakers

For subsequent halvings, each 4-year period will see rewards per block and inflation divided by two. The inflation is capped at a maximum of 21,000,000 CDT, however this doesn’t mean it will reach this level in the next 20 years, to understand this statement better, let’s dwelve into the burning mechanism.

CDT Burning Mechanism

Information on CDT creation in block rewards is presented without taking into account the CDT burning mechanism via transactions.

Here are 3 examples of transactions with a high burn rate:

Case 1: Bridging Transaction

User bridges 1000 CDT from BSC to Ethereum.
Transaction fee: 1.30% (13 CDT).
Bridge validator receives 3 CDT (In/Out).
10 CDT burned in the block.

Case 2: Validator Registration

User becomes a validator by staking 300 CDT.
Blockchain burns an amount equivalent to the block reward of the current halving (e.g., 150 CDT for halving number two).

Case 3: Buying a Cover

User purchases a cover on the Ethereum network, incurring a 1.30% transaction fee.
A portion (ex: 31$) of the fee is converted into CDT.
0.30% used to remunerate cover validators (In).
The remaining 1% burned.

These cases illustrate significant burning within the blockchain’s core components. The burn rate has the effect of delaying Halvings, making it impractical to reach 21,000,000 CDTs. Achieving this limit would necessitate a century of blockchain inactivity, or even more than 100 years.

CEX Listings Update

As the CheckDot blockchain launches, we’re excited to announce listings on centralized exchange platforms. Deposits of CDTs onto these platforms and withdrawals from them will exclusively occur on the CheckDot blockchain. For transfers between the CheckDot blockchain and Ethereum or other blockchains, users can utilize the active bridges designed for seamless interoperability. Stay tuned for more details on CEX listings and cross-chain functionalities.

Recap

As evident, there will be no manually mined CDTs actively generated from the blockchain launch, adhering to 4-year halving cycles. This design is poised to offer enticing returns for new users and foster the integration of insurance throughout the crypto ecosystem. The complementary burning system will annually curtail inflation, significantly impacting the statistics illustrated in the aforementioned graphs, contingent on network usage.

In the weeks following this article’s publication, updates will reflect the new maximum of 21,000,000 CDTs across all platforms where CheckDot is listed. However, without alterations, token mining will be fixed at a maximum of 10,000,000 CDTs on blockchains other than the CheckDot blockchain. It’s important to note that surpassing 10,000,000 CDTs on external blockchains will be unattainable.

Looking ahead to 2024, the development of the CheckDot blockchain will align with the consensus criteria outlined in this article. A testnet is scheduled for 2024, accompanied by an airdrop organized through challenges conducted during its development. A budget is already allocated from the CheckDot treasury for this purpose, ready for distribution upon the blockchain launch.