Maximum Fair Price (MFP)
Last updated
Last updated
As the CLORE Blockchain continues to evolve, key updates are being introduced to further stabilize and optimize the platform’s operations. One of the most impactful changes is the shift of the Maximum Fair Price (MFP) from being pegged to Bitcoin (BTC) to the US Dollar (USD). This transition aims to enhance transparency and predictability within the CLORE ecosystem, especially in light of the inherent volatility in cryptocurrency markets.
For those unfamiliar, the Maximum Fair Price (MFP) acts as a safeguard against inflated self-rental practices by hosting providers. Prior to the implementation of MFP, providers could self-rent their machines under alternate accounts at elevated rates to manipulate the rewards pool. To combat this, the CLORE Blockchain team introduced MFP, which sets a price ceiling that ensures hosting rewards are distributed fairly.
• Rental Price (30% of the hosting reward pool): A smaller portion of rewards is tied to the rental price, which helps prevent self-rental strategies from dominating rewards.
• MFP (70% of the hosting reward pool): The bulk of hosting rewards now come from sticking to or staying below the Maximum Fair Price. If a hosting provider charges above the MFP, they do not receive additional rewards.
It’s essential to clarify that the MFP is not a suggested price for hosting providers. Rather, it serves as the maximum allowable price that ensures fairness within the CLORE ecosystem. Providers are encouraged to set competitive prices that remain under the MFP, offering both value to users and eligibility for a fair share of the hosting reward pool.
The Maximum Fair Price system is closely linked to CLORE’s Proof of Holding (PoH), which rewards users for holding Clore coins. The shift to USD in the MFP system affects how rewards are distributed, benefiting participants in the PoH system. By anchoring MFP to a stable currency like USD, both hosting providers and PoH participants can expect more reliable and consistent rewards.
In the CLORE Blockchain reward structure, different aspects of the platform carry weighted significance in calculating the final rewards:
• Price: 15%
• MFP: 25%
• Price in PoH: 15%
• MFP in PoH: 45%
This weighting system ensures that the MFP plays a crucial role in maintaining balance and fairness across the platform.
Cryptocurrency prices, including Bitcoin, are known for their volatility. Tying the MFP to Bitcoin could lead to erratic pricing and inconsistencies in determining a fair rental price. By pegging MFP to the US Dollar, CLORE introduces a stable and predictable pricing framework that allows hosting providers to set competitive rates with greater confidence.
Additionally, this shift simplifies the calculation process for providers, allowing for straightforward pricing that is less impacted by cryptocurrency fluctuations.
The transition from BTC to USD for MFP was not merely a technical update but a significant overhaul of CLORE’s reward distribution system. The development team has worked diligently to ensure the platform is scalable and flexible. Here are a few key improvements:
• Scalable Implementation: The system is now designed to be adaptable, allowing the platform to integrate any currency by simply adding the relevant price source.
• Universal Codebase: The move to USD required significant modifications to the platform’s logic, with over 2,000 lines of code dedicated to CLORE rewards. The shift ensures seamless integration with the new MFP model.
• Real-time Recalculation: Prices of different coins, such as BTC and CLORE, are now recalculated in real time against USD, guaranteeing accurate rewards distribution.
• Universal Base Currency: By adopting USD as the universal base currency for all transactions, CLORE has simplified the process for hosting providers and users alike, creating a consistent experience across the platform.
The decision to peg the Maximum Fair Price to the US Dollar marks a significant milestone in CLORE’s journey towards a fairer and more transparent ecosystem. By providing hosting providers and PoH participants with greater stability, the platform reinforces its commitment to trust, fairness, and continuous innovation. As CLORE Blockchain continues to grow, these changes will help solidify its reputation as a reliable and community-centric platform, driving long-term success and adoption.
