Tropos Testnet Update Announcement 

Dear Stratos Community,

Tropos incentive testnet has been running for three weeks. Thanks to everyone’s trust and enthusiasm, we have reached around 500 validators in three days and around 5000 SDS nodes in four days. 

We are very excited to see the project working very well as expected. Downloading/uploading files is really fast. Volume reports and rewards can be distributed correctly. With the community’s help, we are fixing some bugs in the code, trying to improve the performance issues, and gaining a lot of achievements during the process. 

Then things went in an unexpected direction. We noticed a lot of nodes registered but cannot really provide any storage and bandwidth for the network. We acknowledge that we underestimated the irrational behavior of some of the users if there’s no actual cost to restrict their actions.

As we all know from the Stratos Token Economic Whitepaper, each SDS node needs to stake STOS tokens to be an activated node. If a node cannot provide promised storage and bandwidth, there will be a penalty on the staking. But in the Testnet this mechanism does not work anymore. The testing STOS token has no real values. That’s why those users can create many ephemeral nodes without hesitation. All they want is the staking reward. And that’s another thing we underestimated on the testnet. On Tropos, we want to test the scenario as close as possible to what will happen on the mainnet; we still give 20% of the reward as staking reward. This actually did not work. Since there’s no cost on getting the testing token, the staking reward is a kind of free gift on the testnet that allures many users who only care about how to get more free stuff rather than help us test the project. 

These users’ behaviors have negatively impacted and derailed the focus of incentive testnet and community. They are not only delaying the development process of the project but also harming the trust of our real friends and partners who want to make the project successful. 

We have been investigating every abusive action, and our network healthiness and performance must be the center of everything we build. We have to make some hard decisions to remedy the situation and make the Tropos return to the right track. To maintain a healthy incentive testnet network, we will take the following concrete actions.

1. We will make a proposal to stop the Tropos-2 network next week.

2. For all the rewards issued before the Tropos pausing, we will only keep the Traffic reward; all staking rewards will be burned. Since Stratos Chain validators only have the staking reward, their loss will be minimal. (ex. One of our own validators has only 0.6 TROS until now even though it stays in the top 100 all the time.)

3. We will change the reward distribution mechanism where 100% of the reward will go to the traffic reward. There will be no staking reward for Validator, Meta node, and SDS node in tropos. 

4. We will start a new Chain (Tropos-3) from zero. This means all validators and SDS nodes will need to register as new nodes. But users can still use their current wallet to ensure they can keep their original traffic reward. 

Stratos is privileged to have such passionate and loyal community members and partners. We do not take that for granted. We sincerely appreciate our partners’ patience in responding to the change. Our goal is to ensure the success of our project, and we believe this is also the shared goal of our trustful partners and community. 

Thank you very much for your understanding and cooperation. 

Yours sincerely, 

Stratos Team