Virtual Proof of Work: Cellula's Gamified Asset Distribution Protocol

Since the popularity of ERC-20 assets in 2017, Web3 has entered an era of low-threshold asset issuance. Various projects issue tokens or NFTs through methods such as ID0 and IC0, but there are issues of strong control and lack of transparency, leading to frequent occurrences of RugPull.

Conventional ID0 and IC0 have exposed fairness flaws, and there has一直 been a hope for a more fair and reliable asset issuance protocol. Although some innovative projects have proposed a "fair economic model", they often fail to be generalized and promoted.

Cellula provides a new approach to address these issues. It implements an asset distribution layer that simulates PoW, utilizing virtual proof of work (vPOW) to "mine" the distribution process, simulating a fairer asset allocation compared to Bitcoin.

Cellula can serve as a universal asset distribution platform with PoW effects, bringing more possibilities for Web3 asset issuance, and can even be called "a social experiment paying tribute to Bitcoin mining."

PoW and vPoW: Lottery Draws with Unpredictable Results

Whether it is PoW, PoS, or vPoW, the essence is to set up a set of algorithms with unpredictable output results, using the results for a "lottery draw." Bitcoin miners must construct a block hash that meets specific conditions in order to receive block rewards. Since the hash results are difficult to predict, they can only continuously change the input parameters for brute force enumeration.

Bitcoin mining utilizes the unpredictability of the SHA-256 algorithm to implement a "lottery" system that allows participation across the entire network, ensuring permissionless participation at the cost of electrical energy. PoW is also a fairer method of asset distribution, as it is much more difficult for project parties to control.

Cellula introduces the "Conway's Game of Life" algorithm to allocate computing power for the virtual digital entity (BitLife). Participants breed cell clusters in petri dishes; the more surviving cells, the higher the mining computing power obtained. Essentially, it replaces the traditional PoW hash computation with a different type of computation that is difficult to predict.

vPOW Core: Conway's Game of Life and BitLife

Conway's Game of Life is a two-dimensional grid game that simulates the evolution of life. It sets the initial cell state in a petri dish and then evolves according to specific rules. Different initial states can produce a myriad of results and can be used to simulate computer effects.

Cellula divides the petri dish into 9x9 squares, with each square having two states: alive or dead. Players need to choose the initial mode of the petri dish. BitLife, as the petri dish entity (NFT), contains 81 squares, with every 3x3 squares forming a BitCell, and each BitLife is composed of 2-9 BitCells.

The cell status of BitLife changes with the block height. Cellula allocates computing power based on the status of BitLife at different heights. At a given height, the more surviving cells there are in BitLife, the higher the computing power, equivalent to creating a virtual mining machine.

The player's goal is to construct or purchase the BitLife that is most likely to earn mining rewards. This is equivalent to allowing ordinary users to develop their own mining machines, and they can sell their own mining machines or purchase others' mining machines for mining.

In BitLife, live cells can overflow the initial 9x9 grid without boundary restrictions. The more active cells there are, the higher the allocated computing power. The system distributes mining rewards every 5 minutes, based on the computing power shares of each BitLife.

The process for players to synthesize BitLife is to "manufacture" new mining machines. After minting on the chain, BitLife needs to be "charged" to start mining, with a single charge being valid for 1 day, 3 days, or 7 days. To encourage charging, a charging lottery feature has been set up.

Currently, the minting of 9x9 BitLife has stopped, with a total of over 1.5 million minted. In the future, roles similar to mining machine manufacturers will be introduced, responsible for minting and selling 12x12 BitLife.

Analysoor Lottery Algorithm and VRGDAs Index Pricing Curve

Cellula uses the Analysoor random number algorithm for charging lotteries, taking the block hash as an input parameter to select winners from the participants. This lottery system effectively incentivizes players to charge and enhances ecological activity.

To prevent a certain BitLife mode from being minted en masse, Cellula introduced a variable-rate progressive Dutch auction (VRGDAs). When the minting volume exceeds expectations, the price is raised; when it falls short of expectations, the price is lowered, dynamically adjusting the price through an exponential pricing curve. This effectively prevents scientists from minting a large quantity of a certain type of BitLife.

From Player Game Theory Perspective on Cellula

The vPOW mechanism of Cellula involves multi-party games. Scientists can programmatically search for high-computation BitLife, while MEV players will listen and follow the minting. However, the VRGDAs algorithm will cause the price index of a single type of BitLife to increase, effectively preventing scientists.

This is similar to the Bitcoin mining machine industry chain, where scientists find that high-performance BitLife is like developing new chips, MEV players follow the trend of minting similar to primary distributor pricing, and secondary market trading is akin to retail investors purchasing equipment.

In contrast, Cellula lowers the threshold for "mining machine research," allowing anyone to potentially become a "scientist." The project party, scientists, and ordinary players form a three-way game, with no single party able to fully control the market, creating a dynamic balance.

Overall, Cellula is a more interesting social experiment than the traditional Bitcoin mining industry chain.