Chiliz Chain (built on a fork of BNB Chain) uses a Proof of Staked Authority (PoSA) consensus mechanism. This mechanism involves a limited set of pre-selected and identified validators (often referred to as the "Starting XI" of 11 active validators at genesis) who stake CHZ tokens to be eligible to validate transactions and produce blocks.
Incentives: Validators are incentivized to maintain network security and performance. They earn rewards in CHZ for validating blocks. The new Tokenomics 2.0 (Dragon 8 hard fork, implemented early 2024) allocates a significant portion of newly issued CHZ (e.g., 65% of inflation) to validators and delegators, ensuring network security and operational integrity.
Fees: Chiliz Chain utilizes an EIP-1559-like fee model. Transactions are paid in CHZ (gas fees), which include a base fee and an optional tip.
Base Fee: Dynamically adjusts based on network activity to optimize block space, and is burned (removed from supply), creating a deflationary pressure.
Optional Tips: Users can include a tip to incentivize validators to prioritize their transactions.
This mechanism allows for high scalability, low transaction costs, and fast transaction finality, while being highly energy-efficient compared to Proof of Work systems.
S.7
Beginning of the period to which the disclosure relates
2024-01-01
S.8
End of the period to which the disclosure relates
2024-12-31
Mandatory key indicator on energy consumption
S.9
Energy consumption
~100,000 kWh (0.1 GWh) per calendar year
S.10
Energy consumption sources and methodologies
The energy consumption of the Chiliz Chain is predominantly from the electricity used by its authorized validator nodes and any supporting full nodes or RPC infrastructure. As a PoSA network, it does not involve energy-intensive mining. Methodologies typically involve:
Hardware consumption estimation: Analyzing the power draw of typical server hardware used by the limited set of validator nodes.
Node count scaling: Multiplying estimated hardware consumption by the relatively small number of active validator nodes.
Chiliz Chain aims to minimize computational energy requirements by limiting the number of active node operators, positioning itself as a "green-friendly" chain. Specific energy usage forecasts and real-time data were planned for public release shortly after its mainnet launch.
Supplementary key indicators on energy and GHG emissions
S.11
Renewable energy consumption
n/a
S.12
Energy intensity
~0.00001 kWh per transaction
S.13
Scope 1 DLT GHG emissions – Controlled
0 t CO2eq per calendar year
S.14
Scope 2 DLT GHG emissions – Purchased
~47.5 t CO2eq per calendar year
S.15
GHG intensity
~0.00000 kg CO2eq per transaction
S.16
Key energy sources and methodologies
The energy sources for Chiliz Chain's validator nodes are those of the data centers and hosting providers where they are operated. These sources reflect the diverse electricity grid mixes (conventional and sustainable) of their global or regional distribution. Methodologies for assessing this would involve:
Location analysis: Identifying the geographical locations of the active validators.
Grid mix data: Correlating these locations with publicly available datasets on electricity generation mixes and their associated carbon intensity factors for those regions. The limited number of validators simplifies estimation compared to widely distributed PoW networks.
S.17
Key GHG sources and methodologies
The predominant source of Greenhouse Gas (GHG) emissions for Chiliz Chain is Scope 2 (indirect emissions from purchased electricity). Methodologies for estimating these emissions involve:
Energy consumption * Emission Factor: Multiplying the estimated total electricity consumption of the Chiliz Chain (S.8) by the carbon intensity (grams of CO2 equivalent per kWh) of the electricity mix used by the validators.
Focus on operational emissions: The primary focus is on the direct operational energy usage of the validator nodes, which is the main energy-consuming component of the chain. Emissions from hardware manufacturing (Scope 3) are typically outside the scope of such reports but contribute to the overall lifecycle impact.
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