Coreum: A Modern Layer-1 Blockchain — Fast and Smart

Coreum Blockchain

Abstract

In this document, we present the upcoming new layer-1 blockchain network “Coreum”, its architecture proposal and the details of the upcoming $CORE Airdrop for the Sologenic community and the $SOLO holders as the initial backer and the most important use-case of Coreum.

It’s notable to mention that Sologenic ecosystem and $SOLO will co-exist on both of the XRP Ledger and the upcoming Coreum blockchain.

Disclaimer: This document does not constitute nor imply a prospectus of any sort. No wording contained herein should be construed as a solicitation for investment. Accordingly, this paper does not pertain in any way to an offering of securities in any jurisdiction worldwide whatsoever. Rather, this paper constitutes a technical description of the functionality of the Coreum Blockchain and its various sub-components. The final White Paper is to be released in Feb 2022. Visit www.coreum.com for more information.

Meet Coreum

Table of contents

· Motivation
·
Architecture proposal
·
Validators
·
Transaction Fees
·
Validator Incentives
·
Validator Rewards Pool
·
Burn Mechanism
·
Staking
·
Delegating
·
Slashing/Retribution
·
Governance
·
Fungible and non-fungible token Issuance
·
Smart contract (WASM)
·
Interoperability & bridges
·
Decentralized exchange (DEX)
·
Decentralized Apps (dApps)
·
Use cases
·
Token Economy
·
Allocation
·
Distribution and airdrop of $CORE for $SOLO holders
·
When will the Snapshot be taken and the CORE tokens be distributed to SOLO holders?
·
When/How will the CORE Airdrop be Distributed?
·
What if you hold your $SOLO on Centralized Exchanges?
·
When/How can I trade $CORE?
·
How to stay tuned for further updates?
·
Roadmap
·
Coreum Community
·
Open-Source Dev Contribution

Motivation

Sologenic was initially launched with the purpose of on-demand tokenization of assets such as stocks and ETFs that could be traded on a fast and reliable Decentralized Exchange. The obvious choice at the time was the XRP Ledger which enabled us to experiment with TrustLines (IOUs) and the native built-in Decentralized Exchange.

Shortly after the launch, we started coming up with new ideas and products to be built on the Sologenic Ecosystem but we were instantly blocked due to the lack of underlying features provided by the XRP Ledger such as smart contracts and issued currency escrows.

We came up with different ways to avoid them, but many other ideas were dropped as they would introduce a centralization piece to the project.

We decided to create a new layer-1 blockchain, that not only helps the Sologenic Ecosystem grow but to help other DeFi developers and to be served as a core infrastructure for the future of decentralized applications.

This is how Coreum was born!

Coreum Design Principles:

  • Highly efficient
  • Fast
  • Cost-effective
  • Green (99% Lower Carbon Footprint)
  • Support for Smart Contracts
  • Built-in Decentralized Exchange
  • Built for tokenization
  • Fully decentralized
  • Interoperable

Architecture proposal

As the blockchain industry grows faster every day, the amount of resources spent on developing this technology also grows at a rapid pace. Just like how software programming languages were primitive in the early days of computing, these days developers can use tools and abstractions to create very complex systems in a short period of time without worrying about, say, memory management.

Validators

Securing the network and block validation is a key part of Coreum’s consensus mechanism.

Transaction Fees

Unlike Ethereum and similar blockchains, Coreum uses a unique fee calculation model that is proposed to resolve the following problems:

  1. High transaction fees with increased transaction volume
  2. Low or no incentivization to validators with minimal network activity
Coreum Transaction Fee

Validator Incentives

Validators play an important role in the Coreum ecosystem and as such are rewarded for securing the network.

Validator Rewards Pool Calculation

Validator Rewards Pool

We believe that validator incentivization is key to decentralization and a sustainable blockchain economy. Coreum incentivizes validators through a protocol-based rewarding system.

Burn Mechanism

In an attempt to create a deflationary economy, Coreum burns 20% of the total fees generated after each block is closed. This ensures the value of CORE tokens increases over time and results in a better validator incentivization and economy.

Staking

Staking gives validators and delegators a passive income by staking their CORE tokens and getting rewards.

Delegating

Users who do not wish or do not have the means to become a validator can become delegators. In short, delegators can choose a validator and stake their CORE tokens by paying a commission to the validator. Delegators are expected to actively participate in governance. A delegator’s voting power is proportional to the size of their stake with the validator and if they don’t engage in community voting, their power is shifted to the validators.

Slashing/Retribution

Governance

Coreum’s Proof of Stake consensus mechanism allows for an on-chain governance ecosystem that enables stakeholders to vote on various decisions to upgrade and improve the chain over time. The Coreum community can decide on protocol changes and vote on new proposals to the chain. As some blockchains like Ethereum do not offer any sort of on-chain governance features, Coreum engages the community to participate in key decisions.

  • Proposal submission: Stakeholders submit proposals with a fee. Once a proposal reaches a certain threshold, the proposal enters into a voting period.
  • Voting: Participants can vote on proposals that reach minimum fee requirements and are active for voting.
  • Inheritance and penalties: Delegators inherit their validator’s vote if they don’t vote themselves.
  • Claiming deposit: Users that deposited on proposals can recover their deposits if the proposal was accepted OR if the proposal never entered the voting period.

Fungible and non-fungible token Issuance

Creating and minting tokens (Fungible and non-fungible tokens) on the Coreum blockchain is supported natively. This built-in functionality even allows issuers to customize their tokenized assets with optional features such as wallet whitelisting, burning and freezing for when it comes to the heavily regulated financial markets like Stock and ETFs.

Smart contract (WASM)

Ethereum has revolutionized the way code and smart contract execution takes place on the blockchain by pioneering the Ethereum Virtual Machine (EVM). While EVM was great at the time for smart contract execution, it has many limitations and lacks support for modern smart contracts.

Interoperability & bridges

With hundreds of Blockchains currently being used, Coreum deploys a bridge functionality to interoperate with various chains through the collateralized wrapping. This allows for other cryptocurrencies to flow into Coreum’s Ecosystem seamlessly.

Decentralized exchange (DEX)

The Decentralized Exchange is a native, built-in exchange functionality within the Coreum blockchain. Although by using smart contracts it is possible to achieve swapping or trading, Coreum aims to build this feature directly in the blockchain core system to allow for a low-fee, secure and fast trading activity with support for all modern trading features.

Decentralized Apps (dApps)

Since Coreum is using WebAssembly, it’s opening a new corridor for Decentralized App developers, and DeFi applications by allowing them to write smart contracts with their favourite programming language.

Use cases

Coreum provides developers and financial institutions with a complete essential infrastructure to build any DeFi applications. Coreum even incentives qualified developers to build intuitive dApps. Some of the proposed use-cases of Coreum blockchain are:

  • Tokenized Securities (e.g. Sologenic.com)
  • Liquidity Providers (LPs) and Market Makers
  • Cross-border Payments, Banking and Remittance (e.g. Swift)
  • Stablecoin Ecosystems (e.g. USDC, USDT, …)
  • Lending Platforms (e.g. Blockfi, Nexo)
  • Wrapped Cryptocurrencies (e.g. ERC20, BEP20)
  • Decentralized Exchanges (e.g. Sologenic.org, UniSwap, …)
  • Metaverse Applications (e.g. Decentraland, The Sandbox, Meta)
  • NFT Marketplaces (e.g. Sologenic.org, Oopensea.io, …)
  • Gaming and Play-to-earn apps (e.g. Axie Infinity)

Token Economy

Token Information

$CORE Token Information

Allocation

$CORE Token Allocation

Distribution and airdrop of $CORE for $SOLO holders

Coreum’s ecosystem and technology are built by the community for the community. In order to engage the community to participate in the new coreum ecosystem and proposed governance utilities, the CORE Team has proposed to conduct an airdrop equal to 20% of the total supply of $CORE tokens (100M) to the Sologenic community as the initial backer and the most important use-case of Coreum blockchain according to a 371-day distribution schedule.

When will the Snapshot be taken and the CORE tokens be distributed to $SOLO holders?

The Coreum airdrop will take place after capturing a snapshot of the account balances on the XRP Ledger, which established a TrustLine to the Sologenic Gateway.

Initially, $CORE tokens will be distributed via an IOU on the XRP Ledger and once Coreum’s mainnet is launched in August 2022, users can conduct a token swap through a Gateway designated for the $CORE. Alternatively, the tokens can remain and co-exist on the XRP Ledger and be traded on the Sologenic DEX.

Example: Let’s assume the final amount of $SOLO which are qualified for the $CORE airdrop at the time of each snapshot is as follows:

When/How will the CORE Airdrop be Distributed?

Each month’s airdrop will be distributed at the time of next month’s snapshot at a random date and time to the $SOLO holders.

$CORE Snapshot and Distribution Schedule

What if you hold your $SOLO on Centralized Exchanges?

$SOLO holders who hold their assets on exchanges will need to periodically check and see if their exchange is supporting the $CORE airdrop.

When/How can I trade $CORE?

Initially, $CORE tokens will be distributed via an IOU on the XRP Ledger and once Coreum’s mainnet is launched in August 2022, users can conduct a token swap through a Gateway designated for the $CORE.

How to stay tuned for further updates?

If you wish to receive more updates about the upcoming $CORE airdrop, we suggest you follow @CoreumOfficial and @realSologenic on Twitter.

Roadmap

Coreum Roadmap

Coreum Community

Coreum is a 100% open-source project created to enable a decentralized web and a better future of blockchain. Anyone can contribute!

Open-Source Dev Contribution

Coreum is an open-source blockchain built on the Tendermint Core BFT and utilizes many of the Cosmos-like modules. Our community needs to grow, therefore our foundation incentives developers, companies and partners who develop and build the ecosystem and eventually Decentralized Apps. If you are interested to join please check this site:

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Sologenic

Sologenic

Sologenic is disrupting the asset trading industry: Tokenized Securities, Crypto Assets & NFTs. www.sologenic.com and www.sologenic.org