Layer-Y - Replacing the USDt and achieving chain fusion idea

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Layer-Y White Paper

The First Completely Trustless Public Consensus Blockchain

Introduction

Layer-Y is an entirely innovative experimental infrastructure built atop the trusted verification layers of major foundational blockchains. By enabling active users across various public blockchains to send transactions to our main index wallets for trusted verification mining, we aim to establish a completely decentralized public consensus platform. This platform eliminates the need for any underlying trusted institutions or centralized foundations, integrating global blockchains across dimensions in a trustless and decentralized manner.

By combining the advantages of Proof of Stake (PoS) and Proof of Work (PoW), Layer-Y seeks to build a fully consensus-governed, trustworthy, decentralized, and globally recognized super credit layer with exponential scalability. All chain code is 100% deployed on the blockchain in the form of smart contracts, ensuring fairness with no pre-mining. The project will be partially and fully open-sourced at block heights of 30,000, 60,000, and 90,000, supporting all compliant audits.

Supported Public Blockchains

First Batch of Supported Public Blockchains (Alphabetically Ordered):

Note: Future integrations and upgrades will be voted on by LY token holders through a DAO.

Blockchain Cryptographic Algorithms Access Method Notes
Aptos ECDSA, EdDSA RPC via HTTPS Outcalls
Arweave Not yet supported RPC via HTTPS Outcalls
Avalanche ECDSA RPC via HTTPS Outcalls
Bitcoin ECDSA, Schnorr Direct ckBTC
Cardano ECDSA, EdDSA, Schnorr RPC via HTTPS Outcalls
Cosmos ECDSA, EdDSA RPC via HTTPS Outcalls
Dogecoin ECDSA CK-Doge Canister
Ethereum ECDSA EVM RPC, ic-web3-rs ckETH, ckERC20
Filecoin ECDSA RPC via HTTPS Outcalls
Hedera ECDSA, EdDSA RPC via HTTPS Outcalls
Kaspa ECDSA RPC via HTTPS Outcalls
Monero EdDSA RPC via HTTPS Outcalls
NEAR EdDSA RPC via HTTPS Outcalls
Polkadot ECDSA, EdDSA RPC via HTTPS Outcalls
Solana EdDSA Solana RPC Alpha, gSOL Beta
Stacks ECDSA RPC via HTTPS Outcalls
Stellar EdDSA RPC via HTTPS Outcalls
Sui ECDSA, EdDSA RPC via HTTPS Outcalls
XRP ECDSA, EdDSA RPC via HTTPS Outcalls
Toncoin EdDSA RPC via HTTPS Outcalls
TRON ECDSA RPC via HTTPS Outcalls

Tokenomics

Total Token Supply

  • Total Supply: 210,000,000 LY tokens

Block Time and Block Production Plan

  • Block Time: A new block is produced every 10 minutes.
  • Block Production Mechanism:
    • Blocks are produced by a decentralized on-chain index that unifies timing.
    • Each block counts all successfully recorded transactions across various supported chains within the block interval.
    • Rewards are distributed to addresses on each chain based on their transaction activity.
  • Address Selection for Rewards:
    • The number of rewarded addresses per chain depends on the real-time successful transaction volume ranking of each chain during the block interval.
      • First Place (Highest Transaction Volume): 3 addresses
      • Second Place: 2 addresses
      • Other Chains: 1 address each
    • Address Selection Method: Addresses are selected completely at random from the pool of successful transactions, ensuring equal opportunity for all participants.
  • Proof of Minting:
    • Once an address is successfully selected as a rewarded address in the current block, the index contract will send a transaction of the smallest unit of the token back to that address.
    • This transaction serves as proof of successful minting and simultaneously acts as a backup for the LY central ledger on various public chains.
  • Reward Distribution Interval:
    • After every 72 blocks (approximately every 12 hours), the central index contract automatically settles and distributes rewards.
    • The smart contract returns all accumulated tokens in the current chain’s reward pool to the rewarded addresses on that chain.
    • Rewarded addresses can claim their LY token rewards on the official website within the specified valid time.

Block Rewards and Halving Cycle

  • Initial Block Reward: 1,500 LY tokens per block
  • Halving Cycle: Every 70,000 blocks (approximately every 1.33 years), the block reward is halved.
  • Total Halvings: The halving continues until the block reward approaches zero, and the total token supply reaches approximately 210,000,000 LY tokens.

Block Reward Schedule Overview

Halving Number Block Height Range Block Reward (LY Tokens) Tokens Produced During Period (LY Tokens)
First 0 - 69,999 1,500 105,000,000
Second 70,000 - 139,999 750 52,500,000
Third 140,000 - 209,999 375 26,250,000
Fourth 210,000 - 279,999 187.5 13,125,000
Fifth 280,000 - 349,999 93.75 6,562,500
… … … …
Total 210,000,000

Note: The actual number of halvings and periods may extend beyond those listed until the total token supply reaches 210,000,000 LY tokens.

Block Reward Distribution

Each block provides users with two types of rewards:

1. Chain-Specific Incentive Amount Reward

  • Mechanism:
    • The main address in the current block receives 90% of the total amount accumulated from all transactions.
    • This amount is returned to 1-3 randomly selected successful verification addresses on that chain.
    • Allocation of Remaining Amounts:
      • 8% of the cumulative amount from each block’s main index address is invested into a locked token trading pool to provide liquidity.
      • 2% is allocated to the foundation to support early code maintenance and research and development efforts.
    • For the first 10,000 blocks, the liquidity pool contribution will gradually decrease from 20% to 8%, with the corresponding portion deducted from the winning addresses.
  • Participation Conditions:
    • Any wallet that sends a transaction to the Layer-Y main index address of any supported chain during the current block cycle is eligible.
  • Fairness:
    • Random Selection: 1-3 wallets are randomly selected per block, ensuring that every participant has an equal chance of receiving rewards.
  • Claim Conditions:
    • Rewarded wallets must link to the mainnet within 1,000 blocks (approximately one week) to claim their earnings.
    • Earnings are automatically converted and cross-chained into the corresponding chain’s token through on-chain contracts and transferred to the participant’s address.
    • Expiration: If not claimed within the specified time, the rewards are considered forfeited and are added back into the current block’s reward pool.

2. Block Token Reward Distribution

  • Mechanism:
    • Each verified address receives a share of LY tokens included in the current block as a reward.
    • When an address is selected as a verification address, the smart contract proactively sends a transaction of the smallest unit of the token to the corresponding on-chain address. This serves to confirm ownership and unify ledger backups.
  • Reward Allocation Example:
    • For the initial block, consider supported public chains such as Bitcoin (BTC), Ethereum (ETH), and Internet Computer (ICP).
    • Transaction Ranking:
      • The chain with the highest transaction volume is allocated 3 winning address slots.
      • The second-highest is allocated 2 slots.
      • Other chains receive 1 slot each.
    • Token Distribution:
      • Each winning wallet successfully mints 250 LY tokens.
  • Claim Conditions:
    • Addresses that receive token distributions must claim their rewards within 1,000 blocks (approximately one week).
    • Expiration: If not claimed within the specified time, the unclaimed LY tokens are burned, reducing the total supply.

Mining Participation

How to Participate in Mining

  • Conditions:
    • Any user can participate in the reward competition of the current block by sending a transaction to the Layer-Y main index address on any of the supported chains.
    • Participation can occur at any time; there are no restrictions on timing.
  • Rewards:
    • Participants have a probabilistic chance to receive both the chain-specific incentive amount reward and the block token reward.
  • Fairness Mechanism:
    • Random Number Generation:
      • Layer-Y utilizes random numbers generated by the Internet Computer (IC) to ensure fairness.
      • This mechanism guarantees that every transaction has an equal opportunity to receive rewards.
    • Encouraging Activity:
      • The system is designed to encourage increased transaction activity across all supported chains.

Future Plans

Second Stage: Transition to an Intermediate Currency

  • Objective:
    • Layer-Y aims to transition into an intermediate currency, potentially replacing stablecoins like USDT.
  • Mechanism:
    • Cross-Chain Liquidity Pools:
      • Each chain will have liquidity pools that swap tokens with LY, facilitating seamless exchange between different chain tokens.
    • Exchange Rates:
      • Exchange rates can be obtained through external calls (oracles) or directly through LY.
    • Direct Cross-Chain Transfers:
      • In future LY upgrades, direct transfers of tokens between various chains will be feasible.
      • Example:
        • Sending ICP to a BNB address: The BNB chain address would directly receive BNB equivalent to the current value of the sent ICP.
        • This mechanism effectively harmonizes the differences between all chains.
  • Benefits:
    • Simplifies cross-chain transactions and reduces reliance on traditional stablecoins.
    • Enhances liquidity and interoperability across blockchain ecosystems.

Identity Consistency

  • Objective:
    • To achieve ultimate identity recognition across all chains, generating comprehensive user profiles.
  • Mechanism:
    • AI Recognition Technology:
      • Employ advanced AI technologies to analyze and recognize information and addresses across different chains.
    • User Consent:
      • Identity recognition and profiling are conducted only with the user’s explicit consent.
  • Benefits:
    • Enhances security and trust within the ecosystem.
    • Enables personalized services and compliance with regulatory requirements.
  • Privacy Considerations:
    • User data and identity information are handled with the utmost confidentiality.
    • Compliance with global data protection regulations is a priority.

Conclusion

Layer-Y represents a significant step forward in creating a truly decentralized and trustless public consensus blockchain. By leveraging the strengths of existing major blockchains and combining the advantages of PoS and PoW, Layer-Y aims to build a super credit layer that is governed entirely by consensus.

The project’s commitment to transparency, fairness, and innovation is demonstrated through its fully on-chain smart contracts, open-source roadmap, and inclusive participation mechanisms. As Layer-Y progresses into its second stage, the potential to become an intermediate currency and facilitate seamless cross-chain transactions positions it as a transformative force in the blockchain industry.

We invite the global blockchain community to participate in the Layer-Y ecosystem, contribute to its development, and be part of this groundbreaking journey toward a decentralized future.

Invitation for Collaboration

Disclaimer: This white paper is a consolidation of my own ideas. I hope that individuals with innovative thoughts will join us in co-building this project. Welcome everyone to discuss and collaborate here

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What are the main incentives for users to participate in the Layer-Y ecosystem, and how does the project ensure fairness in reward distribution?

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Each user participating in mining only needs to send any amount of their native blockchain’s tokens to LayerY’s main token address. LayerY will sort all transactions sent to the wallet based on the amount. The larger the amount sent within a block, the higher the probability that the address will win, meaning a higher chance of producing a block and receiving LY tokens.
When a block is successfully produced, LayerY’s main index address will send a transaction to the winning addresses on each chain to confirm the result. This transaction will be recorded on the respective blockchain as a backup, completing the block production process. Additionally, sending tokens to the LayerY main address works similarly to the concept of minting inscriptions. However, the larger the amount you send, the higher your probability of producing a block and earning rewards.

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