ClusterToken Whitepaper rev0.1
With the rapid expansion and development of blockchain technology, Smart contracts are inevitable becoming the future of our digital evolution. Blockchain technology is only a few years old, yet it’s capabilities are versatile and virtually endless. Smart contracts gain popularity for their ability to act independently of any human interaction, also known as trustless operations, since nobody can tamper with the results or functionality.
ClusterToken is an ERC20 compliant Smart contract token that will bring rewards to token holders by using what’s called “Self Mining Smart Contract” technology. This means that no mining equipment or additional equipment is involved to receive mining profits from the ClusterToken Smart contract.
The ClusterToken reward structure is designed to apply what’s known as “Proportional Reward” system. Most of the tokens released on the blockchain have no further use once purchased in terms of extra rewards. ClusterToken will reward all token holders on a periodic system as explained in section 4 of this whitepaper.
2. Trustless Self Mining Smart Contract
Unlike traditional cryptocurrency mining, ClusterToken will generate new tokens purely by a mathematical formula based on the parents blockchain blocks progress. Since the code can be inspected by anyone, this method is transparent, fair, easy to get started with.
ClusterToken will be deployed on the Ethereum network and use this blockchain as parent blockchain.
3. The cluster system
Instead of giving a reward per mined block, ClusterToken uses a clustered system where holding tokens is rewarded. ClusterToken exists of 3 different units, that each have their own phase to become a single CLUSTER. We distinct these units as follows:
UNIT: The base unit of ClusterTokens. Each block generated on the parent’s blockchain gives 1 UNIT to the ClusterToken Smart contract.
SEGMENT: Every 1000 UNITS, 1 SEGMENT is added to the ClusterToken Smart Contract. Mathematically, one SEGEMENT equals a thousand UNITS.
CLUSTER: Every 1000 SEGMENTS, 1 CLUSTED is added to the contract. This is the main reward for token holders, and the base unit for ClusterToken. Mathematically, 1 CLUSTER equals a thousand SEGMENTS and one million UNITS generated. Essentially, every one million blocks on the parent’s blockchain mined will produce 1 CLUSTER to be distributed among all ClusterToken holders.
4. Proportional Reward structure
Now that the cluster system is explained, we can move on to how the rewards are calculated. The reward structure is set by the following mathematical formula:
REWARD = 1 CLUSTER / HOLDERS * SHARES = REWARD
Every time one CLUSTER is added to the ClusterToken Smart Contract, holders are awarded using this mathematical formula. An example of this calculation can be found on our website (https://www.clustertoken.io).
The rewards can be claimed by any ClusterToken holder by calling the “claimClusters” function of the ClusterToken Smart contract. The rewards will be instantaneously added to your wallet.
ClusterToken has also implemented the possibility of early reward withdrawals. Users can withdraw their rewards every 1 SEGMENT but only half of the rewards will be paid to the holders to stimulate claiming only per CLUSTER as intended. To claim the rewards for every SEGMENT, users have to call the function “claimSegments” on the Smart contract interface.
5. Transaction fees
As ClusterToken is an ethereum Smart Contract, ethereum network transaction fees apply for ClusterToken transactions.
6. Get ClusterTokens
The ClusterToken Smart contract is deployed on the Ethereum blockchain as an ERC20 compliant token. It’s supply and transactions are publicly visible on the Ethereum blockchain explorer. There is no kind of crowdfunding or Initial Coin Offering period for ClusterToken. Clustertoken is available by anyone at any date.
For a detailed description on how to get ClusterTokens, we refer to our website (https://clustertoken.io) where an in-depth guide is published.
If you have prior experience with tokens, you can get ClusterTokens by sending the amount of your choice in Ethereum to the ClusterToken contract address as published on our website.
Use only the contract address published on our website to prevent theft or scam!
The ClusterTokens will be instantaneously available in your wallet after adding the token details to your list.
7. Funds and tokens.
The developers will be allocated 100 ClusterTokens to offer bounties and rewards for marketing, campaigns, and PR related purposes.