Question 1

What is CKB?

Accepted Answer

CKB is the native asset of the Nervos Common Knowledge Base (CKB) Layer 1 and the unit used to represent value and on-chain state capacity. The network uses proof of work: miners compete to produce blocks through computation, while nodes validate transactions and script rules to maintain on-chain state. It is not merely a transferable balance. CKB's Cell model places tokens and data state in Cells: the CKB capacity held determines how much storage space can be occupied on the base layer, so using state requires consideration of both asset balances and occupied capacity.

Question 2

Why is CKB related to on-chain data storage?

Accepted Answer

On the CKB base layer, 1 CKB corresponds to 1 byte of on-chain data storage capacity. Therefore, holding more CKB not only means owning more transferable units, but also being able to allocate more capacity for state and data in Cells. This relationship does not mean that 1 CKB is automatically deducted over time each time data is used; instead, capacity is allocated to on-chain state. A Cell needs at least 61 CKB to cover its basic operational data. When a state item is no longer needed, consuming the relevant Cell and reallocating its outputs can release the CKB capacity it occupied for other uses.

Question 3

How do CKB Cells change in a transaction?

Accepted Answer

A CKB transaction uses unconsumed Live Cells as inputs and creates new output Cells; after an old Cell is consumed, it becomes a Dead Cell and cannot be spent again. To modify data in a Cell, it cannot be rewritten in place. Instead, the old Cell must be consumed, the required data carried forward, and a new Cell created. The conditions for spending or updating are determined by scripts. A common lock script requires a transaction signature that proves control, while an optional type script can specify how a Cell may be used or modified. After nodes check the transaction, it enters the mempool; miners package it into a block, and the new output Cells become usable state only after block confirmation.

Question 4

How do CKB's base issuance and halvings work?

Accepted Answer

CKB's base issuance totals 33.6 billion CKB and halves roughly every four years until base issuance reaches zero. Halving changes the distribution rate of this base issuance; it does not halve existing balances or eliminate other reward sources. CKB's first base issuance halving occurred on November 19, 2023. CKB uses the cycle-adjusted NC-Max mechanism: the total block reward in each Cycle is fixed, the target duration is 4 hours, and the number of blocks in a Cycle varies with network conditions. As a result, the base reward for an individual block can vary, while the total-supply schedule associated with halving is maintained.

Question 5

Why does CKB's secondary issuance depend on state usage?

Accepted Answer

Secondary issuance is a long-term issuance mechanism fixed at 1.344 billion CKB per year, existing alongside base issuance. It is designed so that, as base issuance gradually declines, network security maintenance can still be incentivized in a manner related to on-chain state occupancy. The entire 1.344 billion does not go directly to miners: allocation depends on the network state of CKB. CKB used to store and actively use data corresponds to miner compensation; CKB not used for data storage or locked in the Nervos DAO does not generate miner proceeds in the same way. The higher the utilization rate, the greater the share of secondary issuance miners receive; the portion allocated to the treasury is burned within secondary issuance, so annual mined output cannot be calculated simply by adding base issuance and 1.344 billion.

Question 6

How do CKB transaction fees become miner rewards?

Accepted Answer

In addition to base and secondary issuance, miners can receive proposal rewards and commit rewards generated from transaction fees. Transactions first enter the transaction pool, then move through the proposal zone into the commit zone; this two-step process serves NC-Max's handling of block-propagation latency bottlenecks. For block N, the proposal reward is 40% of the fees from transactions proposed in it and committed from N+2 through N+10; the commit reward is 60% of fees from transactions proposed from N-10 through N-2 and ultimately committed in N. Both reward types are distributed at block N+11. Thus, transaction-fee rewards depend not only on whether a transaction appears, but also on the corresponding relationship between its proposal and commit stages.

Question 7

What is the relationship between locking CKB in the Nervos DAO and secondary issuance?

Accepted Answer

The Nervos DAO is an on-chain smart-contract mechanism. Holders can lock CKB in it to receive compensation related to secondary issuance. Its purpose is not to create additional base issuance, but to provide long-term-held CKB that is not used to occupy on-chain state with a path connected to secondary issuance. This corresponds to the state allocation of secondary issuance: the official materials state that CKB locked in the Nervos DAO does not generate miner secondary-issuance compensation through the “stored and actively used state” path. The arrangement is intended to reduce the effect long-term holders bear from others occupying state and to encourage the removal of unnecessary data.

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