A proposal for the proof of creations.
- A proposal for a high-risk high-return staking scheme.
- In this scheme, stakers get more rewards from active OSS projects.
- We evaluate the activeness of the project by measuring the proof of creations.
- If a project continues to be active, stakers get the higher return from the project.
- If a project becomes inactive, stakers could lose their DEVs.
- By rewarding active projects more, DEV Protocol can enhance the creativity of the community.
- The new scheme generates the circulation of the DEVs (burning DEVs and minting more DEVs in the future), which leads the growth of the DEV economy.
We would like to install a high-risk high-return staking scheme aside from the present staking one. In this new scheme, we measure the activeness of OSS projects. The activeness is measured by, for example, the number of commits of the project. We use the following criteria to judge if a project is active;
- Number of commits per month >= 10, then Project is active.
- Number of commits per month < 10, then Project is inactive.
*Note: The parameters in this section (10 commits or 240% APY) is just an example. When implementing this schcme, these parameters need to be chosen carefully, and we need the consensus in the community about the actual values.
Here we set the higher APY 240% to active projects. 240% is much higher than the current average APY, which is roughly 50%. In the new scheme, stakers burn DEVs when they stake. If the project continues to be active for the whole period, stakers get back 100% of DEVs they burned at the beginning and get the extra rewards 140%
Here assuming that Alice stakes 100 DEVs at a project. When she stakes, she burns her staking amount 100 DEVs. If the project is active for a month, the monthly reward is 240 /12 = 20 DEVs. After 1 year, she gets -100 DEVs + 240 DEVs = 140 DEVs totally. The actual APY is 140%. This is much higher than the current average 50%.
Here assuming the project becomes inactive after 6 months. In this case, Alice gets -100 DEVs + 120 DEVs = 20 DEVs totally. The actual APY is 20%. This is inferior than the current average 50%. This shows that if the project becomes inactive, stakers could get the loss. This is the risk of the new scheme.
The proof of creations archives the followings;
- Rewarding active projects more, which enhances the creativity of the community.
- Generating the circulation of the DEVs (burn and mint of DEVs), which leads the growth of DEV economy.