Economic Design
Delegate Competition
Delegates operate in a fully competitive environment.
Each proposal represents a delegate strategy, vision, or initiative. Delegates do not receive automatic support. Instead, they must earn capital allocation from token holders.
Stake determines ranking.
Ranking determines revenue access.
Revenue determines economic viability.
Higher stake directly increases a proposal’s position in the ranking system. Since only the top five proposals receive daily revenue distribution, maintaining a high ranking is essential for sustained income.
This structure creates continuous competition among delegates.
To attract and retain stake, delegates may:
Offer favorable revenue share parameters
Build strong communities
Deliver consistent value
Communicate transparently with voters
Revenue functions as the primary incentive mechanism. Because income is tied to ranking, delegates are motivated to improve their proposal’s attractiveness over time.
The protocol does not guarantee success. It provides an open market where delegates must compete for capital attention.
Voter Incentives
Voters are not passive observers. They are active capital allocators within the system.
By staking tokens behind a proposal, voters:
Earn ETH rewards generated by protocol revenue
Retain full ownership of their tokens
Maintain the ability to withdraw capital at any time
Participate in governance without locking assets permanently
This balance between yield generation and liquidity preservation is a central design principle.
Voters are free to reallocate their stake if they believe another proposal offers better long term value or higher expected returns. This flexibility ensures that capital is not trapped, and governance decisions remain responsive.
Because revenue is distributed based on stake, voters are naturally incentivized to support proposals that demonstrate:
Strong leadership
Sustainable strategy
Community engagement
Competitive reward structure
Capital flows toward proposals with the best expected return profile, creating an efficient feedback loop between performance and support.
Market Dynamics
The protocol functions as a structured capital allocation market.
Rather than relying on static governance decisions, the system continuously reallocates influence based on real economic signals.
Proposals must compete on multiple dimensions:
Provide Value
Delegates must deliver meaningful contributions to the ecosystem. Value may come from development, partnerships, community building, innovation, or other forms of strategic growth.
Set Competitive Revenue Share
Each proposal defines a delegate revenue split in basis points. Delegates must carefully balance their share with voter incentives. A higher delegate share increases personal revenue but may reduce attractiveness to voters. A lower delegate share may attract more stake but reduce direct compensation.
This creates strategic tradeoffs that influence proposal success.
Maintain Community Trust
Sustained ranking requires long term confidence from voters. Trust is earned through transparency, consistent engagement, and responsible behavior.
Capital Based Evolution
If a proposal fails to maintain sufficient stake, it will drop out of the top five ranking.
When this occurs:
It stops receiving daily revenue allocation
Its economic momentum decreases
Stake may migrate to more competitive proposals
Poorly performing proposals naturally lose capital support over time. The system therefore rewards quality, consistency, and alignment with voter expectations.
This mechanism ensures that governance influence is not static. It evolves dynamically based on community driven capital allocation.
The result is an ecosystem where performance, trust, and innovation directly impact economic outcomes.
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