IOV Name Service — Reward numerical details
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Over the past year, we have built the IOV Name Service that offers the Personalized Addresses at launch and *Starnames soon after. These human readable addresses for blockchain support the growth of a real multi chain and multi crypto-asset ecosystem. The overview of rewards at launch has been presented in this post.
We present here the numerical details such as time periods, guaranteed reward amount and deposit rates.
IOV Name Service economic model refresher
The users of the IOV Name Service pay fees to register, update, renew, transfer names and transfer IOV Tokens. Using a name is free.
All these fees are channelled to the Reward Account and then distributed mostly to validators and depositors, and a smaller part to governance. The distribution is based on a Quality score for validators and a Deposit rate and deposit amount for depositors.
The formula for the distribution to Validators and Depositors is in this medium post. The full picture of the IOV Token economic cycle is in this medium post.
Validators
Validators registered in the genesis file will receive rewards from the guaranteed reward fund, which amounts to 5,000 IOV Tokens per month per validator for the first 2 years and then halving every year until the end of year 10. The guaranteed funds will cover up to 15 validators. Unused guaranteed funds are burned.
The guaranteed reward for validators is distributed monthly.
After launch, new validators will be able to join the testnet and allowed to join the mainet once they achieve a sufficiently high quality score on the testnet and are transparent about their identity.
For more information about how to be a validator for the IOV Name Service, you can visit the documentation and registration pages.
Early Contributors
This project would not have been possible without the early support of all its contributors. All contributors registered in the genesis file qualify for the Depositor reward from launch for their IOV Token distribution address. The Depositor reward will be accessible to new contributors only at a later stage.
You can read this description of the payout formulas. The individual reward for depositors is as follows:
The individual deposit rate is the sum of the base deposit rate and deposit bonuses.
For depositors who are validators, their base deposit rate is their quality score, which starts at 35%. Quality score can grow up to 100%. Validators who are depositors accumulate both their Validator reward and a Depositor reward.
For depositors who are not validators, their base deposit rate is 25%.
Until the escrow mechanism is fully implemented on chain, depositors need to declare their deposit accounts, amount and lock-in duration to the governing board. The token holder cannot withdraw tokens from their deposit account during the lock-in period. A token holder can deposit and lock in their token at any time.
The deposit account is an escrow with a duration of 1 month minimum. The deposit amount considered for the reward is the amount of IOV Token in the escrow.
The reward for Depositors is distributed every 6 months.
Depositors have the option to lock-in their tokens for 6 months or more get a deposit bonus:
The minimum lock-in period is 6 months to benefit from Deposit bonus.
Early contributors deposit bonus: Any contributor depositing their IOV Token within 2 months from launch for a period of 6 months or more will benefits from an additional launching bonus of +30%, which can be extended to subsequent deposit periods. For example if you lock for 2yrs within 2 months, your total deposit bonus is +70%. No token can be added to the initial deposit amount.
Governance
A fraction of the turnover will be used to support governance work and development until they are fully implemented on-chain.
The governance receives 1% of the total turnover every 6 months.
Name reseller
The success of the IOV Name Service depends on the adoption of the names. It is important to reward as well the ambassadors for the name service.
We will explain more about the name reseller scheme when we launch the *Starnames. The registrar of a name will be recorded on-chain and we are working on a reward scheme for name resellers.
