Consensus Protocol/Algorithm

The basic requirement for a Citizen to compete for validation rights, is a collateral deposit. This deposit can consist of HX and all types of HIOU. The greater the number of collateral deposits, the greater the weight to be factored into the algorithm. RPPOM relies on 25 Citizens that are randomly selected at the beginning of each round, based on the aggregated weight of their funds.

The rules for selecting a new Citizen and generating a new block are as follows:

Whenever the number of blocks reaches a multiple of 25, the process to select a new citizen begins.


  • Settlement price: Each Senator has the obligation to provide the settlement price of HIOU via consensus. Each Senator provides this by calculating the exchange rate between HIOU and HX, according to real time prices on exchanges. The final settlement price is reached by calculating the average of all the remaining provided prices after removing the highest and lowest price provided. The settlement price will only affect the weight of a Candidate Citizen when the Citizen is competing to generate blocks.

    Every 25 blocks a new citizen is selected, and subsequent blocks are in turn generated by a chosen Citizen. Therefore, fluctuation in settlement price of these 25 blocks does not affect the eligibility status of the Citizen generating blocks. During a new Citizen selection stage, the previous HIOU settlement price will be used to recalculate the Citizen pledged weight. Then, based on that weight, a Citizen is selected for the current round. Therefore, fluctuations in settlement price would not affect the weight of the Citizen in the current round.


  • 25 Citizens are selected from the pool of candidate Citizens who meet the minimum pledging requirements to participate in block production. When calculating the amount of Citizen deposits, the sum of all HIOUs and HX pledged by Citizens are converted into HX, based on the settlement price. For example, Citizen A has pledged 10 BTC, 10 LTC, and 10 HX. The current settlement price is 1BTC: 100 HX, 1LTC: 10 HX. Thus, the total value pledged from Citizen A is 1110 HX.

    HyperExchange exchanges all pledged assets of Candidate Citizens into HX by price feeding, thus eliminating unqualified Candidate Citizens (those who do not meet minimum asset requirements). The network also orders Candidates from largest to smallest in terms of assets pledged to form a biginteger, and will give each candidate a valid ‘batch number’. A hash number generated by random seeds will then do modulo operation on the biginteger in order to get a ‘pick number’. When a ‘batch number’ of candidates matches the pick number, this candidate will become a citizen.

    In this theory, Hyper Exchange will select 25 citizens in 25 rolls, and those citizens will take turns in producing blocks.


  • The RPPOM consensus mechanism allows the network to accurately generate a block every 5 seconds, with only one authorized producer generating blocks at any point in time. If a block is not produced within the specified time, the producer of the block will be skipped and replaced by the next Citizen. When one or more Citizens do not generate a block, there will be a delay of 10 seconds or more on the blockchain.

  • When 100% of Citizens participate in the network, it will take an average of 2.5s for each transaction to be broadcasted throughout the network and to be 99.9% confirmed.

    However, to avoid unforeseen circumstances such as software bugs, network congestion, or a malicious Citizen creating two or more forks, a node needs to wait for 17 block confirmations in order to ensure that a transaction is absolutely irreversible. Based on the configuration of the network, this takes an average of 85 seconds. By default, all nodes will consider this block to be irreversible when 17 out of the 25 Citizens in the block reach consensus.