GIN Foundation Funding

GIN Foundation and GEA Protocol Funding Announcement. Spenser Mooney, 12 Apr 2019

In the past few weeks we have discussed a lot of exciting new developments within the GIN ecosystem starting with GEA Protocol and the Freighter Fleet. The GIN Foundation was incorporated 3 weeks ago in Amsterdam. Last but not least, LiveCoin exchange which GIN officially listed on two weeks ago and CryptoWolf's instant transfer platform on Wednesday!

One thing that hasn’t been discussed is the detailed proposal of the funding for the GIN Foundation and incentives towards the GEA Protocol. Similar to other foundations you may likely be familiar with, the funding for the foundation will come from part of the block subsidy.

First let's discuss the proposed funding solution and then why it makes sense for the GIN ecosystem and GIN Masternode holders.

1. The Foundation

First source of income that is already available is the premine split in 48 months to cover a basic income for the next four years: 5,937.50 GIN p/M. These funds should cover required costs like the accounting, legal and miscellaneous expenses in order to operate the foundation.

A development fund, equivalent to 1 GIN/block will be directly used to further advance the notoriety and presence of the coin through education, marketing endeavours, GINcoin and GEA protocol development, exchange listings and much more.

Simply put, the GIN taken in by the Foundation is being put to work to further the Usage of the GIN & GEA protocol and new utilities for the network.

The delivery method for this fund shall be a monthly superblock.

2. The GEA Protocol and the Freighter Nodes (1 GIN / block + Service payments)

A reminder as to what the GEA Protocol and Freighter Nodes are seems warranted. As noted in the 1yr anniversary medium article:

The GIN Freighter Fleet will be able to run any workload, be it a continuously running job like a VPN daemon or a job that runs to completion, like counting to 100, as a Cargo on one of or multiple of its Freighters. Briefly put, your GIN masternodes will be able to work for more than just the GIN network. And generate more value in the process.

Otherwise stated, through GEA Protocol your GIN masternodes are now monetizing the blockchain and will be able to now provide services for a Service fee going directly to your wallet.

Current GIN masternode income streams:

  1. GIN Masternode rewards

GIN Freighter masternode income streams through GEA Protocol:

  1. GIN Masternode rewards

  2. Payments for Services Rendered coming from the GEA customer

  3. Availability Subsidy (30%) split between all freighters eligible

  4. Service Subsidy (70%) split between active freighters distribution depending on how much work they've done and how well which is known as Quality of Service (QoS)

Let’s take a look at each in detail.

Masternode rewards

These are the standard, basic rewards the masternode owner receives for staking their 1000 GIN collateral and for offering services such as governance and InstantSend to the blockchain.

Payments for Services Rendered coming from the GEA customer

This level of compensation comes directly from the service you provide for a DAM (Distributed Apps Marketplace). GIN Platform will be the first DAM using GEA Protocol and a service fee for a masternode choosing to use the GEA Protocol will go directly to a GIN Freighter masternode holder.

Example: John has an active & available GIN Freighter masternode and Jill has an ALQO node she chooses to run through GIN Platform and GEA Protocol. Jill’s payment for hosting her masternode on GIN Platform gets sent directly to John’s GIN Freighter masternodes wallet.

Availability Subsidy (30%) split between all freighters eligible

This is your MN additional incentive reward for being available to ensure a streamlined pipeline for new use cases. If your GIN Freighter masternode is available as a Freighter you will receive part of this compensation.

Service Subsidy (70%) split between active freighters distribution depending on how much work they've done and how well which is known as Quality of Service (QoS)

This level of compensation is determined by the actual work your Freighter masternode has performed and how well it has performed. (further criteria that define the Quality of Service (QoS) are being developed and explored).

One of the GIN Foundation’s main marketing initiatives will be marketing towards the addition of new DAM’s (like GIN Platform) to add even further use cases and compensation for GIN Freighters masternodes throughout 2019 and beyond.

The distribution of the Freighter subsidy shall be executed by the GIN Foundation from a Freighter fund, equivalent to 1 GIN/block created through the use of the same superblock, every month.

3. Superblock & halving interval

A monthly superblock shall be created to distribute Foundation funds and Freighter subsidy funds to the Foundation. The superblock shall contain 2 transactions, 21,900 GIN each, to the Foundation and Freighter addresses.

To maintain the total GIN supply the halving interval shall decrease accordingly starting with the next halving.


After the creation of the GIN Foundation and GEA Protocol, GIN Foundation is proposing an update of the block rewards structure. The GIN network will continue to be balanced with active GIN Freighter Nodes receiving an incentivized portion of the block subsidy while additionally receiving compensation for services rendered. The first task (use case) GIN Freighters will perform will be through GIN Platform deploying masternodes. Transforming GIN masternodes into Freighters bring them an added value to monetize GIN’s blockchain. GIN Freighter Node holders receive new income streams for service & availability outside of the standard masternode rewards structure.

This is a proposal for the attention and decision of the GIN community. GIN Foundation guards and strengthens GIN community decision-making mechanisms and its engagement in the future of GIN ecosystem. Thus, the block subsidy change is submitted for consultations within GIN community as of today. The Community is strongly encouraged to debate and provide feedback. Discussion is welcomed across both official GIN Telegram and Discord channels.

With that said we will hold a vote starting April 18th, 2019 in order to start implementation of the proposal and ensure funds are distributed to the GIN Foundation starting in May. A web page with voting instructions will be provided in a separate announcement in the coming days.