Block Production Salaries

Figure 6: Figure 6 illustrates that after the block producer was awarded her SEM tokens for successful and validated block production, as illustrated in Figure 5, all Anchor token holders in the Anchor Protocol participate in the SEM token distribution from the block in proportion to their respective SEM token holdings.

Semada Reputation Salary Calculation Example

	Anchor		Proportional Anchor tokens		SEM Payout
Alice	404	1020 Total / 404 Anchor =	2.524752475	20 Total SEM / Proportional Anchor =	7.92156863
Bob	111	1020 Total / 111 Anchor =	9.189189189	20 Total SEM / Proportional Anchor =	2.17647059
Carlo	303	1020 Total / 303 Anchor =	3.366336634	20 Total SEM / Proportional Anchor =	5.94117647
Donna	202	1020 Total / 202 Anchor =	5.04950495	20 Total SEM / Proportional Anchor =	3.96078431
Total	1020		20

How does Joe earn tradeable currency on the Semada Platform?

SEM tokens (traded on binance) are the tradable currency used for and within transactions (including as gas). Anchor tokens are the Semada block propagation reputation tokens available to the Semada block propagation DAO members.

The Anchor tokens determine who has power in the system for deciding:

1. who gets to make the blocks,

2. whether the blocks are valid in the validation pool, and

3. what percentage of the SEM token denominated reputation salary the Anchor token holders get).

The SEM tokens are the fungible (perfectly transferrable) currency of the system that are used in transactions contained in blocks, like bitcoin or ether. SEM is added to fees for each transaction by public users so block producers will add their transactions to the next block. These fees determine how many new Anchor tokens are minted for a block, then the fees are distributed to all Anchor holders in SEM denominated reputational salary.

New Anchor tokens are created in proportion to the number of SEM denominated transaction fees collected by the system in each block. Therefore, Anchor tokens are highly inflationary. To maintain his relative power, Bob must continue to participate.

Each time a block is produced, the SEM Token denominated fees from the transactions in the block are shared with the entire Anchor protocol DAO members as SEM Token denominated reputation salary (SEM Token is earned for each block in proportion to DAO members’ Anchor token holdings). If Bob owns 1% of Anchor tokens, he earns 1% of all SEM token fees generated by transactions in the block (if block 1 has 50 SEM token and block 2 has 100 SEM, Bob always makes 1% of the SEM token fees in proportion to his 1% of total available Anchor tokens). Block producers do not gain immediate SEM token fees, only more Anchor tokens. If Bob doesn’t participate in block production, e.g. Bob does not participate in the validation pool or does not stake an availability stake to be chosen for block production, he still shares the SEM token denominated reputation salary (for holding proportion of Anchor tokens as an Anchor DAO member) from the DAO member validation pool, but he does not share in the additionally minted Anchor tokens. Thus, Bob’s relative power (as measured by his Anchor token holdings out of total Anchor tokens in circulation) and SEM token salary decreases.