Sidechain reward mechanism question


I am here trying to understand how would be the reward mechanisms for delegate nodes (master nodes) on a sidechain.

I remember that on the Lisk whitepaper I read something: LSK tokens on Dapps on sidechains would be generated based on the CPU time amount to run the Dapp.

First question: From where will appear the LSK?

Second question: Does the owner of Dapp when registering it need to input some funds for the reward mechanism??

Third question: Will be mandatory a reward mechanism for master nodes of sidechain and how would be the election of them on a sidechain? I asked this based on what I read on Lisk whitepaper.

Thank you for your attention.

Hi davinet,

first of all, note that Lisk’s sidechain solution is not specified and implemented yet, but it is still in the research phase. Once we have completed our research, we will post our proposal in this forum and there will be plenty of time to discuss about it. It is also difficult to already discuss certain specification details without having the overall picture.

That is why I also cannot give you any details regarding questions 2 and 3 at this point. Regarding question 1, note that LSK tokens only exist on the Lisk blockchain. This means the supply of LSK tokens is completely determined by the Lisk mainchain protocol. In particular, new tokens are only created due to block rewards on the Lisk mainchain. Sidechains can of course have a tokens that is pegged to LSK, but this is only a presentation of an LSK token. This also means that a sidechain cannot inflate the total supply of LSK.


Thank you for your answer.

When is possible to talk about sidechains tokens, scalability, sidechains and reward mechanism I will be glad to understand more.

Best regards,