📖Glossary

$CIT

Coaction Infrastructure Token (“CIT”) powers the Coaction Network, a decentralized validator tokenization protocol – see Key Properties.

Axelar

A protocol designed to enable safe and efficient cross-chain communication. In the context of Coaction Network, its primary purpose is to connect the Coaction Network with external chains that exist outside the Cosmos network for reward determination.

Boosted Commission Rate (BCR)

The Boosted Commission Rate (BCR) refers to the adjusted commission rate that a validator charges delegates for staking services when the delegator has utilized CIT to receive commission rebates (on project native rewards). In this context, CIT acts as a mechanism to lower the commission rate applied to the delegator's staking transactions, resulting in a reduced effective rate for the staking services provided by the validator.

Boosted Staking Rewards (BSR)

Boosted Staking Rewards (BSR) represent the commission rebates that delegators can claim from a validator. Delegators have the option to burn CIT to earn extra rewards (of project native tokens), enhancing their staking returns.

Burn

Burning tokens refers to a deflationary process that permanently removes cryptocurrency tokens from circulation. In the context of Coaction Network, burning CIT can lead to various outcomes as changes to the network environment are introduced (i.e. delegators electing to burn CIT to earn extra boosted staking rewards).

Coaction Infrastructure

Coaction Infrastructure refers to the collective group of validator operators who have entered a smart contract with the Coaction protocol. By leveraging Coaction's incentive mechanisms and joining the validator cartel, these operators agree to release a portion of their commission revenue to Coaction Network's Treasury. Delegators to any of these validators become eligible to earn CIT, in addition to the native rewards earned on the respective network the validator operates on.

Commission Rate

The Commission Rate is the fee charged by a validator to a delegator for allowing the delegator to stake its tokens to the validator node. Typically calculated as a percentage of the rewards a delegator earns for staking (ranging from 5-20% depending on the network). For further context, see the Delegator definition.

Consensus Mechanism

A Consensus Mechanism is a program used in blockchain systems to achieve distributed agreement about the network's state. It ensures that transactions are validated and recorded correctly without relying on a central authority.

Cosmos SDK

The Cosmos SDK is a framework that facilitates the development of application-specific blockchains. It provides tools and libraries for building customized blockchain applications.

CosmWasm

CosmWasm is a framework that enables developers to write multi-chain smart contracts using any programming language, including Rust, which compiles to Wasm (WebAssembly).

Crypto-Economic Networks

Crypto-Economic Networks are peer-to-peer computer networks that govern the transfer of applicable cryptocurrencies. These networks utilize incentives and encryption to create secure and efficient systems, applications, and networks.

Decentralization

Decentralization refers to the proper distribution of power and control within a blockchain network. It ensures that the network is not governed by a single individual, group, or government entity, but instead operates in a distributed and autonomous manner. It is the opposite of centralization.

Delegator

Delegators are token holders who choose not to run a validator node themselves and, instead, secure the network by delegating their stake to validator nodes. They play a crucial role in the system as they are responsible for selecting validators.

Epoch

An Epoch is a fixed period during which specific conditions exist. In the context of cryptocurrency, an epoch represents a set length of time during which blocks are created and added to the blockchain.

Gas Fee

Gas Fees are transaction fees paid by users to complete transactions on the blockchain. These fees are paid to validators and ensure that transactions are processed efficiently and securely.

Governance

Governance involves a token-based voting system. Governance tokens allow holders to create, vote on proposals, and make decisions about the direction and management of a blockchain.

Inflation Rewards / Emissions

Inflation rewards refer to newly minted tokens distributed to stakers of a blockchain network as a reward for their participation in network security and consensus. Each network may have a different mechanism for distributing these rewards.

Inter-Blockchain Communication Protocol (IBC)

IBC is an open-source protocol that enables data transport and authentication between blockchains. It allows different blockchains to interact with each other, facilitating cross-chain communication and achieving the Web3 vision.

Liquidity Mining

Liquidity Mining is the practice of providing assets to a decentralized exchange, making it easier for other users to trade. Participants are rewarded with a portion of the trading fees or interest earned on the assets they contribute.

Minting

Minting is the process of creating new tokens on a blockchain through validation, block creation, and recording the information on the blockchain.

Nakamoto Coefficient

The Nakamoto Coefficient represents the number of entities required to collude in order to take control of a network. A lower Nakamoto Coefficient indicates a more centralized network.

Proof-of-Stake

Proof-of-Stake is a consensus protocol in blockchains where users, based on the number of tokens they hold, are chosen to validate new blocks of transactions and earn rewards for their correct validations.

Smart Contract

A smart contract is a program deployed on a blockchain that automatically executes upon defined conditions, such as a transaction between two users. It provides trust and efficiency to transactions without the need for a third party.

Staking

Staking involves locking tokens in a blockchain network via validators to support and secure the network. Token holders, called delegators, are rewarded through block rewards generated through inflation and can participate in network governance.

Standard Commission Rate (SCR)

The Standard Commission Rate (SCR) is the typical fixed rate a validator charges delegators for staking tokens to its node.

Tendermint Core

Tendermint Core is a Byzantine fault-tolerant (BFT) consensus engine for blockchain networks, providing a generic application interface (ABCI).

Testnet

Testnets are versions of a blockchain network used for testing and development purposes. They allow developers to deploy and test smart contracts without using real assets or incurring risks or costs, before launching the token on mainnet.

Treasury

The Treasury is a community-controlled decentralized collaborative decision-making mechanism for the operations of the protocol. In the context of Coaction Network, it receives funds from validator commission revenue to fund Boosted Staking Rewards, the grant pool, and more.

Validator

Validators are responsible for verifying transactions on a blockchain and adding new blocks. They are selected based on the number of tokens they stake as collateral and are incentivized through block rewards and transaction fees.

• Note: The difference between CIT validator and a validator leveraging Coaction Network ("Coaction Infrastructure"). The token for a CIT validator is CIT and the token for the latter is whatever native token is used by the protocol that a given validator supports.

WebAssembly (WASM)

WebAssembly is an open standard that defines a portable binary-code format for web-ready executable programs. It allows coding software using different programming languages and facilitates interactions with the host environment.

Web3

Web3 refers to using blockchain technology as the foundation to create a new and improved internet (Web2 being the current version). It aims to empower users with ownership and control over their data and interactions.