All Orcfax $FACT holders are invited to vote on the first-ever Orcfax proposal: the implementation of rewards for $FACT holders. This proposal aims to introduce rewards for $FACT holders who may not have the capacity to join the Orcfax network as a validator, yet wish to receive $FACT rewards for locking (and not moving) their FACT tokens. Through this proposal, we want to encourage our community to let their voices be heard by using their $FACT!
The voting process will start on February 6th at 19:00 UTC and end on February 12th at 19:00 UTC.
A snapshot of your voting power will be taken on February 6th at 18:00 UTC.
Link to the vote: https://app.summonplatform.io/poll/fa9b44c2-1f79-4ab0-9e23-73258d79f676
Where does this idea come from?
Recently Orcfax announced the first details of the Orcfax Validator Network and the associated $FACT rewards. In this announcement, we shared the importance and role of Orcfax validators and how they can reserve an Orcfax Validator NFT license. To join the Network as a validator and earn rewards you need to:
- Reserve and purchase one of the 100 Validator Licenses
- Hold enough $FACT tokens to make the required deposit
- Have enough technical knowledge to run a validator node
- Be willing to maintain and keep your validator node running 24/7
Although we are planning to implement a delegated model in the V2 of our validator network, the initial V1 of our validator network will not include a delegation model. With that said, we received feedback from our community regarding the desire for opportunities that would allow non-validators to also earn a portion of the validation rewards. This proposal was created to find out if there is enough support to implement an interim solution for non-validators to earn rewards by locking (and not moving) their FACT tokens.
Where would these $FACT rewards come from?
Whenever a fact statement is published by a validator, that validator will be rewarded via two different revenue streams:
- $FACT Validator allocation
In the beginning, as the protocol is onboarding paying customers/integrators, Orcfax will use the Validator Rewards allocation, which accounts for 50% of the total $FACT supply, to compensate validators. As time passes these reward emissions will decrease and be replaced by customer fees. - Customer fees
These are the fees which paying customers/integrators will be subject to in order to utilize Orcfax feeds. The total revenue from these fees will increase as the network grows and matures until at some point (5–10 years) this revenue stream will completely replace the decreasing $FACT validator allocation.
As mentioned above, a portion of both revenue streams will go to the validators and the rest will go to the Orcfax network.
Building off of this structure, this proposal describes how Orcfax proposes to use a small portion of these revenue streams to reward non-validators. You can find the proposed breakdown below:
*) Note that these percentages will change as the network grows. As the Validator Rewards allocation depletes over time and as more paying customers are integrated, we will increase the Validators percentage for the customer fees (and decrease the same for Orcfax)
Depending on the total volume of locked $FACT and the number of paid feeds, non-validator $FACT rewards could result in a 3–8% APY (measured in $FACT).
Steps to vote
Orcfax will utilize Summon for the voting process. Summon is a DAO-tooling platform on Cardano, learn more about Summon here.
- DYOR
a) Make sure to read our latest Validator Network announcement
b) Discuss your findings with our community
c) Ask questions in our Discord - Go to the voting ballot: https://app.summonplatform.io/poll/fa9b44c2-1f79-4ab0-9e23-73258d79f676
- Login with your Cardano Wallet
4. If you’re using a hardware wallet, make sure to switch the toggle
5. Vote on ‘Yes’ or ‘No’, whatever you think is best. The more $FACT you hold, the more voting weight you own.
6. Click ‘Submit Your Vote’
7. You successfully voted on the first Orcfax proposal!
8. You can see the results here: https://app.summonplatform.io/poll/fa9b44c2-1f79-4ab0-9e23-73258d79f676
Upon completion of the voting process, Orcfax will communicate the results to the community. If the community votes “Yes” to this proposal, we will start investigating methods to implement non-validator staking for the initial version (V1) of the validator network.
This process represents an exciting milestone for the Orcfax network as we continue to position our technology to align with our decentralized ideals. We hope that you, as a valuable member of the Orcfax community, take the time to inform yourself and participate in this exciting moment which will be the first of many community led Orcfax developments. We’ll see you at the polls!
