By pledging assets, Citizens are selected to produce blocks and obtain block rewards. Tourists can also participate in mining and obtain mining rewards by pledging assets through Citizens. According to the RPPOM consensus mechanism, after a new block is generated, the system will automatically follow the underlying protocol and distribute rewards to citizens and their supporters (users who pledged their assets with Citizens), according to their weighting.
This kind of pledging mechanism has the following advantages:
- Collateral mining and rewards sharing are jointly verified by the entire network. After a new block is generated, the internal underlying protocol will distribute those block rewards to Citizens according to their weighting. There will be no uncertainties unlike those seen in centralised mining pools.
- Similar PoS mining pool users are required to transfer their assets to their relevant pool,whereas the HyperExchange chain only stake assets, meaning, the users private key is still in their possession, there is no need to physically transfer it to a Citizen, thus there will be no security problems and users can withdraw their staked assets at any time.