TARI Point Transparency
Tari World has adopted a TARI Point policy to reduce the transaction load on the blockchain and ensure the liquidity of the token pool and pays TARI Point as a reward for users' participation in the platform and contribution to the ecosystem. Since TARI Point operates off-chain, providing TARI Point as a reward instead of TARI Token has some disadvantages regarding securing transparency. However, to compensate for this, the platform is being developed to implement a more comprehensive TARI Point policy.
The TARI Point flow diagram is revealed below.
1. Reward(TARI Point)
Users who actively participate in the Tari World platform and contribute to expanding the ecosystem will receive TARI Point as a reward(Details are in Token Utility).
* Proving that the integrity and the status of TARI Point are genuine.
Transparency in swapping TARI Point to TARI Token can be guaranteed through the flow. Still, it is not easy to ensure vital transparency because the TARI Point is not on-chain as to whether the TARI World Rewards policy justly provides the TARI Point. Instead, Tari World has a thorough point disclosure and recording system to complement this so that any Tari World user can verify the integrity of TARI Point by checking other users' current status and history. Specifically, the TARI Point Dashboard will be implemented in the application to open it so that everyone can see the current status of points, swap history, and details of the rewards received through participation in the platform (Public anonymity is remaining).
2. Request to swap Tari Point to TARI Token
Once the user has received the Tari Point from Tari World, they would have a request to swap Tari Point to TARI Token. A primary motivation of trading is to monetize TARI Token; they will be eager to withdraw the token and withdraw indeed.
* State Channel
TARI Swap is a part of a demonstration of the layer2 platform in terms of "off-blockchain" 2-way state channels. State channels can solve small transactions very efficiently: without third-party intervention, stakeholders open separate payment channels on the off-chain to conduct commerce on the off-chain, and at the end, close the channel and record them on the on-chain.
<How State Channels Work>
The state channel is opened by locking up the blockchain status of the trading parties participating in the channel (wallet balance in the transfer of funds) to a smart contract operated by the parties' multi-signatures. The parties then proceed with the transaction off-chain rather than the Ethereum on-chain, closing the state channel at the end of the transaction and recording the changed state on the Ethereum on-chain.
The advantage of a state channel is that it does not use Ethereum on-chain at all, and it allows transactions to be off-chain as quickly as desired with a state channel open. Especially within the state channel, there is no fee, so it has the advantage of being able to carry out minimal transactions.
State channels record status on the Klaytn network when the parties to the transaction initially open the channel under mutual agreement and when the channel is closed after the last transaction.
The completeness of the transaction is guaranteed immediately because, within the state channel, the parties only have to agree on it. The transaction gives you the advantage of much lower fees and faster speeds than another network.
There is a limit to the state channel designated users can only use. Naturally, users can come in and leave with the channel open, but there is a hassle of changing contracts.
State channels are advantageous when several transactions are required between limited parties over a long period. Because the cost results from the required contract distribution converge to zero-base when opening a state channel.
Consequently, TARI Swap will provide technical options for users to exchange between TARI Token and TARI Point. Two ratio factors will be influenced by the total circulated token supply proportion. To prevent tokenized inflation, the systematic algorithm implemented in Tari Swap automatically calculates the flat exchange rate and executes the token swap with a reasonable rate.
3. Submitting the state changes to the blockchain
As the function of Bridge in TARI Swap, the channels demand to submit the state changes to the blockchain network, which is the Tari World main net, where the whole recorded block of Tari Token restores. Subsequently, the main net determines whether the Request's integrity is true.
4. Locking up state using smart contract
Once the process is confirmed, the blockchain system splits it out to lock up the state using a smart contract. The contract enables to skip the on-chain data and allows transactions to be off-chain as quickly as desired with a state channel open. In particular, there is no fee within the state channel, so it has the advantage of being able to proceed with tiny transactions.
5. Respond to a request
At this stage, TARI Point is converted to TARI Token, remaining the block on the Tari World main net. As a result, the recorded data is encrypted and has the authority to receive a Tari Token with the corresponding amount of Tari Point.
6. Trade TARI Token
Eventually, The user will be responded to a forwarding request and acquire the Tari Token with full access to trade, buy, stake, and even withdraw to the major Exchanges. They are eligible to use the token to buy Land NFTs and Avatar NFTs and pay the leasing or advertisement etc., in TARI NFT Marketplace. Fundamentally, trade with TARI Token with users' free will cooperate with conducting an active marketplace in Tari World.