Usually a miner’s reward directly depends on network hashrate, meaning larger nethash results in lower reward portion going to each miner. In other words, if the amount of GPUs in the network grows 1000 times, the average miners reward within given time frame will become 1000 times less. Some cryptocurrencies use non-linear dependencies, but their principle also remains the same, higher the network hashrate, less each miner receives. BitGun uses another approach – as total network hashrate grows, the block reward gradually increases, allowing to keep an average miners reward relatively stable.
This is how it works.
The reward size for each block changes every time at the moment of block generation, depending on the total average nethash recorded for the last 24 blocks.
The reward size for each block changes in accordance with a set of “levels” reflecting the Fibonacci series. There are 15 levels.
Table 1 presents the levels defined by total nethash and the corresponding block reward size .
For the block reward size to change automatically, the total XDNA nethash must overcome the corresponding threshold value from the table.
What are the advantages of using this approach?
Comparing with the conventional block reward calculation methods, BitGun allows us to stabilize the reward amount received by miners in the certain period of time. With a sufficient growth of network hashrate the average reward slightly decreases, remaining, however, much larger than in systems with traditional distribution.

Table shows comparison of an average reward for one Nvidia GTX 1080Ti GPU for 24 hours using classical calculation method and BitGun.

Mathematical modelling was performed for levels 1-8. For this simulation, we used the following conditions: a miner gets a reward from each block.

Figure 1 presents the comparison of daily reward for a single Nvidia GeForce GTX 1080ti GPU depending on total network hashrate, stated in number of mining GPUs.