Suterusu x LBank AMA Recap
On December 3rd 2019, Suterusu CSO Seven took part in a special AMA on the LBank Exchange Telegram Channel.
We have compiled a summary of all questions answered during the AMA in this article. Enjoy!
AMA Questions
Q: Give us an introduction about Suterusu. What is Suterusu?
Seven: Suterusu, a blockchain-agnostic privacy-preserving platform.
Suterusu implements and integrates the state-of-the-art trust less zero-knowledge non-interactive argument of knowledge (ZK-SNARK) protocol, and offers multiple technical modules based on our ZK-SNARK implementation to enable the main blockchain to show privacy-preserving features.
Suterusu will also provide a cross-chain blockchain protocol for anonymous assets issued in different blockchains to guarantee their high liquidity and exchangeability.
Suterusu has chosen a community-driven approach to guide its core development path and has allocated 76% of the tokens to the community through mining.
Suterusu will also introduce liquid decentralized meritocracy as the on-chain governance mechanism. This will provide participants with more flexibility and autonomy compared to the existing solution.
Q: What is the mission of Suterusu?
Seven: As our slogan states, we hope that our endeavor could help users to retain their control over their own data and in turn to protect their privacy in the digital world.
Q: What kind of technical modules do you use to provide private transactions under various payment models and cross-chain scenarios?
Seven: The first is ZK-ConSNARK, which “set-up free” makes it securer, extremely small constant size transaction, and high verification
The second is SuterVM, which support account-based anonymity, UTXO anonymity, and cross-chain transaction
The third is Que sera consensus (QSC) Protocol, which simplify the process of consensus in a synchronized network based on threshold logical clock
Q: Why is privacy important for consumers? How should this affect the development of cryptographic technologies?
Seven: The fact that Bitcoin can rise from ashes of the 2008 world financial crisis and quickly emerge as a major force in the stage of world finance, to a very large extent, can be attributed to its anti-establishment nature.
Satoshi intended to design Bitcoin as a P2P e-cash, but its core technology blockchain has a natural deficit in terms of protecting individual privacy since it is a public ledger.
Every user of bitcoin should realize that without sufficient protection of the users’ privacy, bitcoin or any of its successors can never become a truly universal P2P e-cash when each transaction record happening over the blockchain is in plain sight of the authority.
I think Cryptographic technologies will play a more and more important role not just in the sphere of blockchain technology, but it has great potential to disrupt the business model of the current web economy.
The main driver behind today’s web economy is the monetization of the technology consumers’ attention and data.
People have gradually realized that their attention and data have a great value and want a share of this pie.
In the end, they have to seek the help of Cryptography to retain the economic value of their attention and data.
The cryptographic technology developed for our project will no doubt eventually play a significant role in this coming revolution.
Q: What are the technical advantages of Suterusu compared to other privacy projects, such as Zcash and Monero?
Seven: As we know, Zcash has it’s zk- SNARK but requires a trusted setup step, the compromise of which will allow the attacker to print infinite amounts of Zcash out of thin air without the possibility of being detected.
Setup-free cryptocurrency such as Monero, Grin, and Beam do not scale well due to their asymptotically larger SNARK size.
Their proof size is logarithmic even after adopting the Bulletproof technique.
Suterusu doesn’t require a trusted setup as Zcash, and we will also significantly improve the performance of the underlying ZK-SNARK scheme used in the existing setup-free privacy coins.
Our cross-chain protocol will guarantee the liquidity and interoperability of the Suter token.
Q: What is the Suterusu token economy model? What are the incentives for the holders?
Seven: Suterusu’s token economy model featured as it’s innovative “Staking as Offering” system and include followed points:
1. Capped supply and majority mined by the community
10 billion capped supply
76% of the total will be allocated as mining rewards
A deflationary-based issuance process
2. Dual-layers node system and will be set in two steps
Nominator node is set up in the first step and will have the priority of mining early while the validator node will be set up in the second step
All nodes will be rewarded based on the mining power which is calculated based on the token quantity, holding period and mining power index
3. Nominator node: mortgage issue and start up the economy
Private sale is the only channel for a nominator node
A 180-day lock time and will be unlocked in the next 180 day
Have the unlocked priority if introduce a validator node successfully
4.Validator node: Pos mining pool business mode and dynamic mining power
Collateralize minimum 1 million, become a validator candidate and will be rewarded by staking
Can charge a 10–20% commission rate from the voting community members
Short-term reward: double mining power and a first-come-first-win scheme which means all validator candidates at least share 10% mining rewards in the total network
Long-term reward: share the transaction fee in Suterusu ecosystem
Q: Tell us about the distribution and release scheme of Suter tokens.
Seven: We have built a deflationary-based issuance process where less Suter tokens are issued per block over time
Token Distribution: The total amount of tokens is 10 Billion, 16% for fundraising, 4.8% for the team, 3.2% for foundation, the rest will be allocated to future mining rewards.
Both the foundation and team’s token will be locked for a minimum of 3 years and unlocked according to a predefined schedule.
Q: Tell us about governance and node validation.
Seven: Suterusu will use the stake-weighted referendum before any changes made to the protocol.
The basic principle is that the majority of stake commands the network.
In the case of insufficient turnout, we will introduce a statement voting mechanism for liquid decentralized Meritocracy to guarantee one could always delegate its voting power to the best expert on an issue they can trust.
Liquid decentralized meritocracy allows the stakeholder to flexibly pick any delegate they wish whenever there is a voting issue.
This mechanism combines the advantages of both liquid democracy and the meritocracy mechanism of the conventional bureaucratic system of East Asia.
Q: Staking and Mining with Suterusu, any more details?
Seven: The POS mining of Suterusu has been launched on Oct. 10 this year and we can show some real data about the rewards rate of it.
Based on the graph we can see the average mining rewards rate of validator candidates in the past 25 days and 7 days are 46.38% and 8.81% separately.
And the rewards rate of voting to validator candidates is 30.09% and 5.11%.
The validator capital community has a mortgage-to-vote-rate beyond 4 so his real rewards rate is 132.79% in the past 25 days.
Q: What do the next few months/years look like for Suterusu? Any big developments planned that you can tell us about?
Seven: Suterusu launched in December 2018 and it took about seven months to complete the technical design, including the proposal of the core technology ZK-conSNARK module.
Starting with the selection of nominator nodes and validator nodes, the economic incentive mechanism has been introduced step-by-step, and an on-chain governance system has been gradually established from September 2019.
In 2020, Suterusu will complete the development of setup-free ZK-ConSNARK.
This will be followed by the implementation of SuterVM and the cross-chain protocol in the next year.
We will be focusing on the implementation and testing of the Suterusu main net so that it will be online by the middle of that year.
Q: As I see, Suterusu project is mainly focusing on Privacy based Blockchain! But which types of privacy services are there in Suterusu! Also, what are the use-cases of Suterusu in the real-world?
Seven: Firstly, Suterusu can support anonymous transactions of digital assets like bitcoin.
Anonymous payments are a long-term scenario for Suterusu.
Compared with bitcoin, stablecoins are more suitable for the function of “payment”.
In addition, Suterusu can also be widely used in other fields other than finance, such as anonymous elections and auctions
Thanks to everyone who joined us, and we look forward to bringing more AMA’s to the LBank Community.
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