In a recent Twitter Space on 15 Jan, 2025, representatives from Fox Wallet and Spacemesh came together to discuss their ongoing collaboration, latest developments, and plans for 2025. The discussion provided valuable insights into both projects and their shared vision for the future of decentralized technology.
Fox Wallet Overview
Natalie, representing Fox Wallet as their Business Development lead for nearly three years, opened the discussion by introducing their multi-chain decentralized Web3 wallet. Fox Wallet currently supports over 80 different networks, including Spacemesh, and stands out as possibly the only mobile wallet solution for the Space Mesh ecosystem.
Key features of Fox Wallet include:
Cross-chain swaps
Fiat on/off ramps
Discovery page for accessing various dApps
Seamless integration with Space Mesh ecosystem
NFT support for select networks
Advanced security features, including audits and 24/7 monitoring through Go Plus and Web API
Potential upcoming staking features for Spacemesh
Spacemesh: A Novel Blockchain Approach
Tomer Afek, a key figure at Spacemesh, shared his journey from VC investor to crypto innovator. The project emerged from his experiences as a Bitcoin miner in 2016-2017, when he observed the increasing industrialization of mining making it unfeasible for home miners. This led to the development of Spacemesh, which introduces several innovative approaches to blockchain technology:
Reduced minimum requirements for reward-earning nodes
Separation of node operations from mining activities
Medium Term:
ATX merge implementation
Identity consolidation features
Network load reduction
Long Term:
New version of Post protocol
Prevention of identity splitting exploits
Optimization for existing miners
Enhanced marketing initiatives
Future Collaboration
Both parties expressed enthusiasm for continued collaboration, particularly as Spacemesh prepares for expanded marketing initiatives following their technical improvements. Fox Wallet indicated their readiness to support these efforts through their community engagement and integration capabilities.
Community Engagement
The Spacemesh team emphasized opportunities for developers to build key institutions within their ecosystem, particularly as the VM becomes more functional. They encourage early interaction with the system to explore potential applications that could benefit from enhanced decentralization.
In the evolving world of blockchain, one principle stands out as a cornerstone for building a truly decentralized future: permissionless participation. At Spacemesh, this isn’t just a feature—it’s a foundational value that drives every decision, every design, and every innovation. Let’s explore why permissionless participation is so crucial, the challenges it addresses in the crypto space, and how Spacemesh is creating a network that’s accessible, fair, and open to all.
What Does Permissionless Mean?
Permissionless systems allow anyone to participate without requiring approval or permission from a centralized authority. Whether you’re running a node, mining, or transacting, the system welcomes you without gatekeepers.
For Spacemesh, permissionless participation means that anyone with basic hardware and a bit of free disk space can join the network and contribute. This ethos is a direct challenge to many traditional and even modern blockchain systems, which often include subtle or overt barriers to entry.
Why Permissionless Participation Matters
1. True Decentralization
Many blockchains claim to be decentralized, but when you dig deeper, you’ll often find concentration of power. Whether it’s in industrial mining farms or wealth-based Proof of Stake (PoS) systems, the reality is that many blockchains inadvertently favor those with more resources.
Spacemesh takes a different approach. By using Proof of Space Time (PoST), Spacemesh ensures that participation doesn’t depend on expensive GPUs, massive energy consumption, or large amounts of staked cryptocurrency. Instead, it’s based on something almost everyone has: unused hard drive space.
2. Fairness and Accessibility
The cryptocurrency space has seen a rise in exclusivity. From the dominance of industrial mining operations in Proof of Work (PoW) systems to the capital-intensive nature of PoS systems, many blockchains inadvertently exclude smaller participants.
Spacemesh combats this by keeping entry barriers low. If you have a basic PC and some spare storage, you can smesh (mine) and earn rewards. This approach ensures that Spacemesh isn’t just for the wealthy or technically savvy—it’s for everyone.
3. Resilience Through Diversity
A network’s strength lies in its diversity. When power is concentrated in a few hands, it becomes vulnerable to attacks, manipulation, and even failure. Permissionless participation ensures a wide range of participants, making the network more resilient to these risks.
Spacemesh’s low entry barriers encourage individuals from all over the world to join. The more distributed the participants, the harder it becomes for any single entity to disrupt the network.
The Challenges of Permissionless Participation
Building a truly permissionless system isn’t easy. It requires innovative technology and a commitment to designing systems that prioritize fairness and accessibility over quick profits. Spacemesh has faced and overcome several challenges to stay true to its vision:
1. Economies of Scale in Mining
Traditional PoW systems, like Bitcoin, started as permissionless, but the rise of industrial-scale mining has created significant centralization. Cheap electricity and bulk-purchased hardware give big players an edge, pushing out smaller miners.
Spacemesh’s PoST levels the playing field by using hard drive space instead of computational power. This eliminates many of the advantages large miners have, keeping mining accessible to individuals.
2. Capital Barriers in Proof of Stake
PoS systems are often lauded for their energy efficiency, but they come with a major drawback: they favor the wealthy. The more tokens you own, the more control you have, creating an inherent bias toward the already rich.
Spacemesh avoids this by not tying participation to financial stakes. It’s designed to be open to anyone, regardless of their financial situation.
How Spacemesh Achieves Permissionless Participation
1. Proof of Space Time (PoST)
At the heart of Spacemesh is PoST, a unique consensus mechanism that relies on storage instead of computational power or financial stakes. Participants dedicate unused hard drive space to the network, proving their commitment without incurring high costs.
This approach is not only fair but also energy-efficient, addressing one of the biggest criticisms of traditional PoW systems.
2. No Reliance on Mining Pools
Many blockchain systems push miners toward pools to remain competitive. While pools offer predictable rewards, they centralize control and require miners to trust pool operators.
Spacemesh is designed to minimize the need for pools. Its architecture allows individual miners to remain competitive without pooling resources, ensuring true independence and decentralization.
3. Node Split for Enhanced Security and Accessibility
The upcoming Node Split architecture will make it even easier for individuals to participate. By separating the public node from the Smasher Service, Node Split reduces resource demands while keeping private keys secure. This modular design lowers barriers for home miners and ensures a more secure setup.
Permissionless Participation and the Future
Spacemesh’s commitment to permissionless participation is about more than just technology—it’s about building a better future. A truly decentralized network empowers individuals, giving them control over their digital lives without relying on centralized authorities.
In a world where trust in institutions is eroding, Spacemesh offers a vision of a system that’s open, fair, and built for the common good. By staying true to its permissionless principles, Spacemesh is creating opportunities for everyone—not just the privileged few.
Why Support Spacemesh?
Spacemesh is more than just a blockchain—it’s a movement. A movement to create a decentralized, permissionless system that empowers individuals and protects the interests of the many. Supporting Spacemesh means supporting a vision of crypto that’s open to all, fair, and resilient.
As Spacemesh continues to evolve, permissionless participation will remain at its core. By prioritizing accessibility, fairness, and decentralization, Spacemesh is setting a new standard for what blockchain can achieve.
Are you ready to join the permissionless revolution? Spacemesh is building the future, and there’s room for everyone.
Welcome to the hub of Spacemesh knowledge! As a part of the growing blockchain and crypto ecosystem, Spacemesh introduces unique approaches to decentralization and energy efficiency. To help both newcomers and experienced enthusiasts explore and understand this innovative project, I’ve created a series of Twitter threads under @Spacemeshindia. Each thread breaks down complex concepts, updates, and features of Spacemesh in an easy-to-follow format.
In this post, you’ll find a collection of all my Twitter threads, curated to guide you through Spacemesh’s key ideas and latest developments. Whether you’re here to learn about the basics, deep-dive into technical details, or stay updated on the project’s progress, these threads have you covered.
Cryptocurrencies are all about innovation, and Spacemesh is no exception. At the heart of any successful cryptocurrency lies its Tech and tokenomics—the rules governing how coins are distributed, earned, and circulated. For Spacemesh, its SMH tokenomics are designed to promote fairness, decentralization, and long-term sustainability.
But what exactly makes Spacemesh’s tokenomics stand out? Why does decentralization matter, and how does vesting play a crucial role in the network’s growth? In this post, we’ll break down these concepts in simple, digestible terms.
What is Tokenomics?
Before we zoom in on Spacemesh, let’s get a handle on what tokenomics is in general. Imagine you’re the owner of a bakery. You need to decide how many loaves of bread you’ll bake, how you’ll distribute them, and who gets them. Do you make a lot of bread upfront and give it all away, or do you slowly bake loaves over time so people can always get fresh bread? Tokenomics works the same way for cryptocurrencies, but instead of bread, you have coins.
Tokenomics answers important questions like:
How many coins will be created?
How will these coins be distributed?
What rewards will miners or participants receive?
How can the economy of this cryptocurrency remain sustainable?
Now that we have a sense of what tokenomics is, let’s dive into Spacemesh.
Spacemesh Tokenomics: Designed for the Long Term
Spacemesh takes a unique approach to distributing its native token, SMH. Unlike some cryptocurrencies that flood the market with tokens, Spacemesh follows a model inspired by Bitcoin—but with important tweaks that make it even more gradual and sustainable.
Why Gradual Issuance?
Instead of dumping a large number of $SMH into the ecosystem at once, Spacemesh releases new coins slowly—similar to how Bitcoin does it, but even slower.Why? This allows the economy to grow steadily, prevents inflation, and ensures there’s always some incentive for new participants to join in and mine SMH.
Here’s the fun part: Spacemesh’s issuance rate is 7.3 times more gradual than Bitcoin! To put it simply, Bitcoin cuts the number of new coins it releases every four years in a process called “halving.” But Spacemesh is much more patient. Its issuance decreases steadily with a half-life of 31 years. Think of it like a slow-release vitamin, giving the network just the right amount of “energy” over time to keep it healthy and growing.
How SMH is Distributed
The Total Supply of SMH
Spacemesh has a total supply of 2.4 billion SMH coins. These coins will be distributed slowly over hundreds of years. In fact, the last full SMH won’t be issued until 2299! Talk about thinking long term, right?
But don’t worry—you won’t have to wait until the 23rd century to get your hands on some SMH. Here’s how the distribution works.
No Premine: Starting on Equal Footing
Unlike many cryptocurrencies that give early investors or insiders a huge number of coins before the network even launches, Spacemesh takes a different approach. There is no premine.
What does this mean? On the day the Spacemesh network went live, zero coins was being handed out to early investors or developers. The only way to get SMH in the first year is to mine it yourself, just like everyone else. This helps ensure a fair start for all participants.
Vesting: Slow and Steady Wins the Race
Now, while early investors and builders won’t get coins right away, they are still rewarded over time. This is done through something called a vesting schedule.
What is Vesting?
Think of vesting like this: You’re given a big chocolate cake (or coins in this case), but you’re not allowed to eat the whole thing at once. Instead, you can only eat a slice every year for the next few years. That’s vesting! It ensures that early supporters can’t flood the market with coins all at once, which could cause prices to crash.
How Vesting Works in Spacemesh
For Spacemesh, 150 million SMH coins are set aside for early investors and core team members. These coins will be locked in smart contracts, and they’ll start to unlock after the first year of the network. Over the next three years, these coins will slowly unlock, meaning early supporters will get their share gradually rather than all at once.
Here’s the breakdown:
Year 1: No coins unlock.
Years 2-4: Coins unlock gradually, so by the end of year 4, they’ll be fully vested and tradable.
By the 10-year mark, these early coins will represent 25% of the total supply issued up to that point. But over time, as more SMH is mined by the community, this percentage will decrease to 6.25% of the total supply. You Can Track Vault Unlock Here
Adapting to Community Feedback: Tokenomics Adjustment
One of the standout features of Spacemesh is its commitment to community-driven governance. Unlike some projects where decisions are made behind closed doors, Spacemesh listens to its users and adapts based on their feedback.
Originally, Spacemesh had a steeper vesting cliff. What does that mean? It means that after the first year, a large portion of the tokens reserved for early investors and supporters would unlock all at once. This would have caused a sudden increase in the circulating supply, which raised concerns within the community.
To address this, the Spacemesh team listened to the community and smoothed out the vesting schedule. Instead of a sharp release of tokens, the coins now unlock gradually, reducing the risk of a supply shock that could destabilize the market.
This change shows Spacemesh’s commitment to fairness and maintaining a healthy ecosystem. By responding to community concerns, they ensured the network remains stable, and early supporters still get rewarded without disrupting the broader market.
Why This Matters
This adjustment highlights an important aspect of Spacemesh’s tokenomics: it’s built to evolve with the community. Instead of sticking to rigid rules, the team worked with the community to find a better solution. This kind of adaptive governance helps ensure long-term sustainability and keeps the project aligned with the interests of all participants.
A Long-Term Vision: Decentralization and Fairness
Spacemesh’s tokenomics are built with decentralization in mind. The team believes that anyone, anywhere, should be able to participate in mining without needing specialized hardware. In fact, all you need is a regular computer and some extra storage space to start earning SMH.
This makes the network more inclusive, allowing people from all over the world to join without expensive mining rigs. It’s a bit like saying: “Hey, you don’t need a fancy bakery to make great bread—just your home kitchen will do!
A Predictable Economic Model
One of the key goals of Spacemesh’s tokenomics is to create an economy that’s predictable and transparent. Since the rate at which SMH is issued is tied to an exponential decay function, the supply is always known and easy to calculate.
In other words, there are no surprises. Everyone can see how many SMH coins have been issued at any given time, and how many are left to be mined.
Why Does This Matter?
At its core, the way Spacemesh is handling its tokenomics and vesting schedule is about ensuring fairness and long-term sustainability. Instead of handing early investors a huge bag of coins upfront, Spacemesh ensures that they receive their rewards over time. This keeps the market stable and gives new participants a chance to mine and earn coins fairly.
The gradual issuance also ensures that there will always be new coins for miners to earn, even many years into the future. It’s a plan designed not just for now, but for centuries to come. That’s long-term thinking!
Conclusion: Building a Decentralized Future
Spacemesh’s approach to tokenomics and vesting is all about creating a fair and decentralized economic model that lasts for generations. By allowing anyone with a computer to mine SMH and by issuing coins gradually, Spacemesh is making sure the network remains healthy, inclusive, and sustainable.
The slow-release nature of SMH ensures that new participants always have something to mine, while the vesting schedule for early investors keeps the market balanced.
So, whether you’re a miner, developer, or investor, Spacemesh is giving you the opportunity to be part of a decentralized future. And it’s doing so with fairness, transparency, and sustainability at the heart of its economic model.
In this post, we’re going to unravel the mystery of how cryptocurrencies like Bitcoin manage to agree on who owns what, without a central authority calling the shots. We’ll start with the classic proof of work, then explore newer ideas like proof of stake, and finally dive into an exciting new approach called Space Mesh. Buckle up, because we’re about to take a journey from the digital mines of Bitcoin to the frontiers of blockchain technology!
Background and Context: The Birth of Distributed Consensus
To understand consensus mechanisms, let’s first hop in our time machine and travel back to the 1980s. No, not for the music (though that was pretty great), but because that’s when computer scientists started wrestling with a tricky problem: how do you get a bunch of computers to agree on something when some of them might be lying?
This problem, known as distributed consensus, is like trying to organize a potluck dinner where some guests might be secretly trying to sabotage the meal. How do you make sure everyone brings the right dish when you can’t trust all the RSVPs?
Fast forward to 2008, and along comes a mysterious figure named Satoshi Nakamoto with a brilliant idea: what if, instead of counting votes from people (who can easily create fake identities online), we count votes based on computer power? This was the birth of Bitcoin and its consensus mechanism: proof of work.
In-Depth Explanation: From Proof of Work to Spacemesh
Proof of Work: The Digital Gold Rush
Proof of work is like a never-ending mathematical treasure hunt. Imagine thousands of computers around the world trying to solve a really hard math problem. The first one to solve it gets to add a new “block” to the blockchain and receives some shiny new bitcoins as a reward.
Here’s how it works:
Transactions are grouped into a block.
Miners (powerful computers) compete to solve a complex mathematical puzzle.
The first miner to solve the puzzle gets to add the block to the blockchain.
Other miners verify the solution and move on to the next block.
This system is clever because it makes it extremely expensive to cheat. If you wanted to change a past transaction, you’d need to redo all the work from that point forward, which would require more computing power than the entire honest network combined.
However, proof of work has some drawbacks:
It’s energy-hungry. Bitcoin mining now uses as much electricity as a medium-sized country!
It can lead to unfair reward distribution, with big mining operations getting a head start.
It limits transaction throughput because only one miner can add a block at a time.
Proof of Stake: The Digital Stockholders Meeting
Enter proof of stake, the eco-friendly cousin of proof of work. Instead of a computational race, proof of stake is more like a lottery where your chances of winning are proportional to how many coins you hold.
Here’s the gist:
Validators “stake” their coins as collateral.
The network randomly selects a validator to create the next block.
If the validator acts honestly, they earn transaction fees. If they cheat, they lose their stake.
This system uses far less energy and allows for faster transactions. However, it’s not without its critics. Some argue it could lead to centralization, with the richest validators accumulating more power over time.
Spacemesh: The New Kid on the Block(chain)
Now, let’s talk about an exciting new approach: Spacemesh. Developed by a team of researchers, Spacemesh aims to combine the best of both worlds while addressing their shortcomings.
Spacemesh is based on a concept called proof of space-time. Instead of using computational power or staked coins, it uses storage space over time. Here’s how it works:
Participants allocate space on their hard drives to the network.
The network selects participants to create blocks in each “layer” (think of layers as time periods).
Selected participants create blocks and include transactions.
The network uses a combination of voting and randomness to agree on which blocks are valid.
What makes Space Mesh special? Let’s break it down:
1. Race-Free Consensus
Remember how in Bitcoin, miners race to solve a puzzle? This can lead to wasted effort and unfair advantages. Space Mesh eliminates this race condition. If you’re selected to create a block, you can do so without worrying about someone beating you to it.
2. Increased Throughput
Because multiple blocks can be created in each layer, Space Mesh can potentially handle many more transactions per second than traditional blockchain systems.
3. Fair Reward Distribution
In Spacemesh, your chances of being selected to create a block are directly proportional to the amount of space you contribute. This makes it harder for large operators to gain unfair advantages.
4. Environmental Friendliness
While not as energy-efficient as proof of stake, Spacemesh uses far less energy than proof of work systems. Storing data is much cheaper and more environmentally friendly than constantly running computations.
5. True Decentralization
Unlike proof of stake, where the rich can potentially accumulate more power, Space Mesh allows anyone with spare hard drive space to participate meaningfully in the network.
6. Formal Security Proofs
The creators of Spacemesh have put a lot of effort into formally proving the security of their system. This means we can have more confidence in its resistance to attacks.
The Tortoise and the Hare: Spacemesh’s Dual Protocol Approach
Spacemesh uses two protocols working together: the Tortoise and the Hare. (And no, we’re not talking about Aesop’s fables here!)
The Tortoise protocol is like the steady, reliable backbone of the system. It slowly but surely confirms blocks and transactions, making them irreversible over time. It does this by having blocks vote on the validity of previous blocks.
The Hare protocol, on the other hand, is the quick decision-maker. It helps honest participants agree on recent blocks quickly, so you don’t have to wait for the Tortoise to slowly confirm everything.
Together, these protocols provide both fast initial confirmation and long-term security. It’s like having your cake and eating it too!
Real-World Applications and Implications
So why should you care about all this blockchain mumbo-jumbo? Well, consensus mechanisms are the beating heart of cryptocurrencies and blockchain technology. They determine how fast transactions can be processed, how much energy is used, and who gets to participate in the network.
Imagine a world where:
International money transfers happen in min, not days, and cost cents instead of dollars.
Voting systems are transparent and tamper-proof, ensuring fair elections.
Supply chains are fully traceable, reducing fraud and improving safety.
These are just a few of the potential applications of blockchain technology. The consensus mechanism used can make the difference between a slow, energy-hungry system and a fast, efficient one that can handle real-world demands.
Spacemesh, with its innovative approach, could potentially unlock new use cases for blockchain technology. Its increased throughput could make it suitable for high-frequency applications like micropayments or real-time asset trading. Its fairness and accessibility could lead to more decentralized networks, reducing the risk of manipulation by powerful entities.
Conclusion
We’ve come a long way from the early days of Bitcoin’s proof of work. Through proof of stake and now to innovative approaches like Space Mesh, we’re seeing the evolution of consensus mechanisms in real-time.
These aren’t just abstract computer science concepts. They’re the foundations upon which the next generation of financial systems, supply chains, and decentralized applications will be built. As we continue to grapple with issues of trust, transparency, and fairness in our digital world, these consensus mechanisms will play an increasingly important role.
So the next time you hear about a new cryptocurrency or blockchain project, take a moment to look under the hood at its consensus mechanism. It might just give you a glimpse into the future of how we agree on things in our increasingly digital world.
Remember, in the world of blockchain, consensus isn’t just about agreement – it’s about building trust in a trustless world. And that’s something we can all agree is pretty amazing.
Further Reading
If you’re hungry for more blockchain knowledge, here are some resources to continue your journey:
“Mastering Bitcoin” by Andreas M. Antonopoulos – A deep dive into Bitcoin and proof of work.
