Token Locking Smart Contract for Blockchain Transaction Rewards
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Solution Overview
Problem
Current blockchain platforms face high transaction costs and network congestion, leading to decreased usage as clients are not incentivized to spend tokens, resulting in inefficient service provision by service providers.
Innovation Solution
A token-locking and spending system where clients lock tokens to earn interest, which can be used to reward service providers without spending their own tokens, utilizing smart contracts to automate and regulate token submission, receipt, and release, while prioritizing transactions based on locked token quantity and transaction size.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If clients spend tokens to perform transactions on the blockchain, then transaction costs are covered and service providers are compensated, but network congestion increases and transaction costs become enormous
Solution Approach 1:
The system requires clients to lock tokens in advance before performing transactions. This preliminary action of locking tokens creates a pool of available tokens that can be used to pay service providers, eliminating the need for clients to spend tokens during transaction execution and reducing network congestion while ensuring transaction costs are covered
Solution Approach 2:
The patent introduces an intermediary mechanism where locked tokens serve as a medium between clients and service providers. Instead of direct token spending, the system uses locked tokens as an intermediary resource pool that service providers can draw from, reducing direct network pressure while maintaining compensation mechanisms
2Productivity
If the blockchain platform incentivizes client spending, then transaction volume increases, but network congestion and transaction costs worsen
Solution Approach 1:
By requiring token locking in advance, the system prepares transaction resources beforehand, enabling higher transaction volumes without proportionally increasing network congestion during execution. The preliminary locking action separates resource preparation from transaction processing, reducing real-time network pressure
Solution Approach 2:
The system dynamically adjusts the relationship between locked tokens and transaction execution. Service providers can choose to wait for locked tokens before processing transactions, creating a dynamic matching mechanism that increases transaction volume while managing network congestion through flexible timing
3Productivity
If service providers prioritize servicing requests, then transaction efficiency improves, but the system complexity increases
Solution Approach 1:
Service providers autonomously decide whether to wait for locked tokens based on their own service priorities and reward evaluations. This self-service mechanism eliminates the need for complex centralized prioritization systems, improving transaction efficiency while keeping the framework relatively simple through decentralized provider autonomy
4Reliability
If clients lock tokens for a period of time, then service providers are rewarded and transaction costs reduce, but token liquidity decreases
Solution Approach 1:
Locked tokens serve as an intermediary resource that maintains liquidity through structured release mechanisms. Tokens are not permanently locked but held in a controlled state where they can be released based on service completion, maintaining both provider compensation and eventual token liquidity through the intermediary locking mechanism
Data Source
AI summary
The systems and methods of a blockchain platform for transactions, comprising: submitting one or more tokens for locking for a period of time; receiving free interest tokens for the locked tokens using a multiplier; sending the interest tokens to perform a transaction to one or more service providers; releasing the locked tokens; wherein submitting, receiving, sending and releasing of tokens is automatically regulated using smart contract protocol on the blockchain platform. The systems and methods of a blockchain platform wherein the smart contract protocol is comprising of: establishing a negotiated token rate for the transaction for negotiated terms of service; invoking signed markers for the transaction; transferring tokens from reward pool to a challenge pool; releasing tokens from challenge pool after authorization, verification and finalization of the transaction.