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Merge pull request #144 from Yung-Beef/patch-68
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Energy updates
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olehmell authored Feb 14, 2024
2 parents 9bdadf8 + 26a0144 commit 5054277
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2 changes: 1 addition & 1 deletion docs/basics/glossary/Overview.md
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Expand Up @@ -59,7 +59,7 @@ Here is how to [get SUB](https://docs.subsocial.network/docs/tutorials/GetSUB/ge
## Energy
Energy is created by burning SUB, and can be used to perform actions on the network with reduced fees. Energy is not transferrable. When burning SUB to create energy,
a multiplier (known as the energy coefficient) greater than 1 is used, meaning that users will be able to perform more actions with 1 energy
than if they spent 1 SUB directly. For example, with an energy coefficient of 5x, Alice can perform 5x more actions with 1 energy than she can with 1 SUB.
than if they spent 1 SUB directly. For example, with an energy coefficient of 2x, Alice can perform 2x more actions with 1 energy than she can with 1 SUB.

Energy can be created in a different wallet than the one that burnt the SUB tokens,
allowing friends or applications to let you have energy without having to worry about SUB tokens.
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6 changes: 3 additions & 3 deletions docs/basics/lightpaper/architecture/Energy.md
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---
id: energy
title: About Energy
title: Energy
displayed_sidebar: homeSidebar
---

Energy allows usage of the Subsocial network without tokens, and has a few key points and implications.
Energy is not actually a token, and cannot be transferred between accounts, and transaction fees are lower when using energy.
To create energy, tokens need to be burned, but the energy can be created in a different account than the one burning the tokens.

The energy coefficient is an on-chain parameter that can be set by the chain's governance. This coefficient determines how much cheaper transactions are when energy is used instead of SUB. At the time of writing, the energy coefficient is 5x, meaning transaction fees are 5x cheaper if energy is used.
The energy coefficient is an on-chain parameter that can be set by the chain's governance. This coefficient determines how much cheaper transactions are when energy is used instead of SUB. At the time of writing, the energy coefficient is 2x, meaning transaction fees are 2x cheaper if energy is used.

For example, Alice burns 10 SUB and creates 10 energy in her account.
This allows Alice to perform roughly 2500 actions by using energy, instead of only 500 actions by using SUB tokens.
This allows Alice to perform roughly 1,000 actions by using energy, instead of only 500 actions by using SUB tokens.
Thus, Alice is incentivized to convert her tokens into energy, creating deflationary pressure on the token.

Alice could instead burn those 10 tokens and create the 10 energy in Bob's account, allowing Bob to use Subsocial without ever getting SUB tokens.
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2 changes: 1 addition & 1 deletion docs/develop/concepts/sponsored/energy.md
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Expand Up @@ -9,7 +9,7 @@ Energy allows usage of the Subsocial network without tokens, and has a few key p
Currently, there are 2 ways to generate energy which will be explained below.

### Burn SUB tokens
You can burn SUB tokens to generate energy for your account, or for another account. The fee used for each transaction will be significantly lower than if you were to use SUB tokens. How much cheaper the energy is set by energy coefficient. Energy coefficient is an on-chain parameter that can be set by the chain's governance. At the time of writing, the energy coefficient is 5x, meaning transaction fees are 5x cheaper if energy is used.
You can burn SUB tokens to generate energy for your account, or for another account. The fee used for each transaction will be significantly lower than if you were to use SUB tokens. How much cheaper the energy is set by energy coefficient. Energy coefficient is an on-chain parameter that can be set by the chain's governance. At the time of writing, the energy coefficient is 2x, meaning transaction fees are 2x cheaper if energy is used.
For more details, you can read it [here](/docs/basics/lightpaper/architecture/energy).

By using this method, app developer can onboard their user easily by burning their own tokens for them. This can make the user experience for the app much better by making the user not have to worry about buying tokens to use the app. To see how to do it, you can read it [here](/docs/develop/sdk/energy)
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