Unpacked Part 1: Early Adopter Incentive
The central philosophy of the ICON Network reward distribution is fair compensation based on relative contribution. Each participant can demonstrate their contribution through the ICON Network’s unique contribution evaluation system. In the end, contribution is the most important value shared within the ICON Network, and therefore will be the sole standard in the network. Delegated Proof of Contribution (DPoC), as described herein, is the sole justification for electing representatives.”
Since releasing the yellowpaper and IISS details, there have been numerous questions regarding how to become a P-Rep, staking timing and ultimately what are the benefits to an ICONist for holding ICX. The icon.community continues to do a great job providing details on these topics among many other ICON related items. If you haven’t already, please give them a follow at https://medium.com/iconcm. They are doing fantastic work and facilitating thoughtful discussions around all things ICON. For new ICONists, you can also refer to our FAQ portal.
In this short post, I want to emphasize how important and exciting the DPoC opportunity is for early adopters. The 23.4k in Reddit, 17.9k in Telegram, and the 112K followers on Twitter; this is for you.
DPoC unpacked (Part 1)
Our partner, Hyun from DeBlock, just published a great article on the benefits of becoming a DApp operator on the ICON platform.
His analysis is spot-on (and something I’ve been pitching in recent weeks). Our design is a very compelling selling point to any entrepreneur considering building applications on Web 3.0. Simply put, the IISS structure is designed to act as a network incubator or accelerator (with a treasury) to provide what I’ll call ‘grants’ (new money) to businesses looking to build or expand on the ICON network. As Hyun rightfully noted, these ‘grants’ can be significant especially when compared to traditional business models. For big companies as well as smaller players.
“In the conventional mobile market, if a company develops an application and gets Google AdSense to make such amount of profits, it would be required to have at least 5 million DAU.”
Hyun Oh — Deblock
Another added benefit in our platform is the potential upside given the limited number of DApps currently operating on ICON.
As someone who works closely with ICX Station, we want to help ICONists: 1) build, 2) integrate and/or 3) migrate to take advantage of this unique opportunity.
As an addendum to Hyun’s work, I’ve put together a simple model to make it easier for ICONists to visualize impacts to new money supply and rewards (eg reward levels, delegation rates, etc).
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In it you can toggle different inputs (blue) to calculate: 1) your potential return for delegating your stake, 2) the potential return for running a DApp and receiving delegation, 3) the potential return for running an EEP and receiving delegation and 4) returns as a P-Rep.
In this simple illustration, I’ve modeled the majority of the returns (in the USD % equivalent) to go to the ICONists. You as holders/stakers; which in my view is the way it should be. Secondarily, I believe a substantial portion of block rewards should go to DApps to entice new developments and usage of the network.
Remember that P-Reps will ultimately decide where to allocate block rewards. This illustrative model shows the impact of each respective category on new money supply: P-Reps, DApps, EEPs and ICONists.