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Rent-Based System

Messaging Concept​

Understanding the message communication model and its benefits is of utmost importance for the safety and success of developers working with Vara Network. This innovative model is built upon the principles of the Actor Model, where all participants, including programs and users, are considered "actors." These actors interact seamlessly by exchanging messages.

Rent-Based system​

Message rent​

Vara enables rent for messages stored in the Waitlist.

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According to the Actor Model in Gear Protocol, actors exchange messages. One of the Gear-specific entities is the Waitlist - a database where messages (not transactions) reside.

A message enters payable storage with locked funds for a maximum duration in N blocks. In M blocks (where M<N), a message can leave storage, paying rent for M blocks from locked funds and freeing the rest of this lock (N-M) back. The Rent Pool is a synthetic address that keeps all rent payments during the current staking ERA. At the end of the ERA, the rent payment redistributes rent shares among the validator set according to their ERA points.

If the message remains in storage for its maximum duration N, it is automatically removed from storage, and the entire locked funds are distributed to validators (but not more than N in case of network congestion). Unlike programs, remaining messages in the waitlist cannot be prolonged.

Why is this Important?​

  • Efficient Resource Utilization: The message expiration system in the Vara Network prevents the accumulation of outdated or unused programs within its storage. By automatically expiring and messages after a predetermined period, the network optimizes resource utilization, reducing clutter and ensuring a clean ecosystem for active and relevant programs.
  • Stimulating Utility Token Use: To extend the life of their programs beyond the initial expiration date, owners must pay rent using utility tokens. This mechanism incentivizes and stimulates the use of utility tokens within the Vara ecosystem. As a result, the circulation of utility tokens increases, enhancing their overall utility and promoting a healthy token economy.
  • Promoting a Sustainable Economic Model: Vara Network's thoughtful program life cycle approach ensures that network resources are allocated to actively maintained and useful programs. By utilizing a rent-based system, Vara fosters a sustainable economic model, wherein programs that continue to provide value can be sustained over time, leading to a healthier and more robust network.