Voter Rewards in TCRs

A Breakdown on How to Earn TCR Tokens as a Voter

The first Token-Curated Registry on the Ethereum Mainnet is live! The adChain Registry, a TCR for non-fraudulent digital publishers, is home to over 35 domain applications as its first week comes to a conclusion. Although some might not see the incentive to apply a domain, everyone who owns ADT is incentivized to vote!

The adChain Registry is an implementation of Mike Goldin’s Token-Curated Registries 1.0, which does not put your token at stake if you vote on the incorrect side. This implementation incentives all ADT holders to vote, without the fear of losing ADT. A breakdown of the voting is as follows:

APPLICATION

• Applicant applies example.com into the registry with 1,000 ADT staked

CHALLENGE

• Challenger challenges example.com from the registry with 1,000 ADT staked

VOTING

Once challenged, example.com is moved into the voting stage where everyone who owns ADT can commit votes and earn ADT. For this example, let’s say there are 4 wallets which vote:

• Wallet I: Votes 100 ADT to SUPPORT example.com (100% of all SUP.)
• Wallet II: Votes 100 ADT to OPPOSE example.com (25% of all OPP.)
• Wallet III: Votes 100 ADT to OPPOSE example.com (25% of all OPP.)
• Wallet IV: Votes 200 ADT to OPPOSE example.com (50% of all OPP.)

VOTING CONCLUSION

• Total ADT to SUPPORT example.com: 100 ADT (20%)
• Total ADT to OPPOSE example.com: 400 ADT (80%)

This is where the registry parameters come into play:

• When VOTE_QUORUM is set to 50%, the applicant needs more than 50% of total votes in SUPPORT in order to be admitted. Since the total percentage in SUPPORT was only 20%, the domain is REJECTED from the registry, with the applicant forfeiting their staked ADT.

TOKEN DISPENSATION

Now that we know the outcome of the vote, we can distribute the applicant’s staked ADT to the winning group.

• When DISPENSATION_PCT is set to 50%, the challenger, in this case, is awarded 50% of the applicant’s staked ADT. The remaining ADT is split on a weighted-basis to the voters who voted to OPPOSE example.com.
• Challenger wins 500 ADT (50% of Applicant’s staked ADT)
• Wallet II wins 125 ADT (25% of the remaining 500 ADT)
• Wallet III wins 125 ADT (25% of the remaining 500 ADT)
• Wallet IV wins 250 ADT (50% of the remaining 500 ADT)

CONCLUSION

As you can see, wallets II, III, and IV were able to win ADT by voting on the majority side. Wallet I, on the other-hand, didn’t win any ADT, but also didn’t lose any. With the applicant and the challenger being the only ones having their ADT stake, anybody who owns ADT is incentivized to vote!