Ventureum Token-Curated Registry: How Does It Work? And What Does It Mean for You?
In the past week the development of the Ventureum protocol hit one of the biggest milestones: the Ventureum Token-Curated Registry (VTCR) went live on the Ethereum Rinkeby testnet. VTCR is a list of high-quality blockchain projects with prospective token sales, created and continuously being improved by decentralized regulators in the Ventureum ecosystem, i.e., VTH holders. And we also announces the commencement of the public testing program of VTCR, which is the first part of the Ventureum public testing program. One can interact with VTCR deployed on Rinkeby testnet through http://alpha.ventureum.io and have first-hand experience with VTCR.
VTCR is the first ICO listing created and maintained in a completely decentralized way. By contrast, all existing ICO listings are managed by centralized parties, albeit some of them are managed by communities with a pivotal company or foundation. VTCR totally gets rid of the possible arbitrariness brought by a centralized list owner, or even worse, the possible collusion between a list owner and a project founder.
How Does VTCR Work?
Token-Curated Registries (TCRs) is a brilliant idea proposed by Mike Goldin of ConsenSys in 2017. Since the inception of the idea, it has seen its implementation and application in several renowned DApps, such as adChain, District0x, and the idea itself also experienced iterations and improvements. TCRs, in their essence, are lists that are created and maintained by a group of token holders on-chain through a decentralized voting mechanism. TCRs demonstrate an excellent case in which tokens are necessary to run a system by various stakeholders, justifying token-necessity, and the system would continue to function normally in the indefinite absence of its creators, and do something useful, satisfying self-sustainability and public utility.
According to Mike Goldin in the original article that introduced the idea of TCRs, there are three stakeholders in a TCR: consumers, candidates and token holders. He wrote: “Consumers desire high-quality lists. Candidates desire to be included in such lists. Token holders desire to increase the price of the tokens they hold.”
An illustration of who consumers, candidates, and token holders are, are presented here in the context of VTCR.
In VTCR, consumers could be token investors, media, auditors, regulators and even the general public.
Candidates are blockchain projects with a prospective token sale.
Token holders are VTH holders, who are decentralized regulators in the Ventureum ecosystem who will also play an important role in the subsequent phases of the Ventureum protocol, i.e., Milestone-driven Governance.
The essential mechanism is: when the quality of listees of VTCR is high, consumers will devote attention to VTCR and thus bring economic values to listees. Then candidates will want to become a listee. This will increase demand for VTH and lead to an increase in the intrinsic value of VTH. VTH holders will be motivated to allow high-quality blockchain projects to become listees.
If a candidate wants to become a listee, they must pay an application fee in VTH. The application fee is a form of deposits placed by the candidate, to demonstrate their seriousness and commitments. An application can be challenged by a VTH holder who needs to place the same amount of VTH as deposits. Then an on-chain vote by other VTH holders will be held to resolve the challenge. The voting weights of a VTH holder is proportional to the amount of VTH he or she staked in the voting contract. If the challenge is successful, the deposit by the candidate will be forfeited and disbursed to the majority voting bloc. If the challenge is unsuccessful or there is no challenge initiated during the application stage, the candidate becomes a listee in VTCR.
What Does VTCR Mean for You?
A growing and prosperous VTCR brings many opportunities to various kinds of players in the crypto-world.
If you are a crypto/token investor, pay close attention to the growing list of projects in VTCR. VTCR could be your first stop to find quality projects/tokens that are worth your further attention and investments. Since VTCR is a registry of projects/ICOs managed in a completely decentralized approach, this registry is trustworthy by its nature.
If you are a project founder, becoming a listee in VTCR could make your project stand out from the flood of new blockchain projects. Prepare yourself and collect all the required information that needs to be disclosed to file an application.
If you are an auditing firm, or a crypto/token fund manager, or a regulator in the off-chain world, or anyone with ability to perform due diligence, you should think about becoming a decentralized regulator in the Ventureum ecosystem who will “curate” VTCR and bring values to the crypto-world and yourself.
Mini-tutorial of VTCR
Application: Project founders can submit an application to list their projects in VTCR. Founders are required to provide detailed disclosure about their project by using the form in the Application page. Please note founders need to stake an non-refundable amount of 50,000 VTH for an application. Note for testing purposes, the application fee is temporarily set to be 5 VTH.
Projects: All projects which are either accepted (in “WHITELIST”) into VTCR or still in the application stage are demonstrated here. VTH holders can stake an non-refundable amount of 50,000 VTH and challenge an application during its application stage (by clicking the “CHALLENGE” button). If an application is being challenged, other VTH holders can stake voting rights and participate in a vote to decide the winning party of the challenge, employing the classical “COMMIT” and “REVEAL” process. In the “COMMIT” stage, voters can cast their voting rights in favor of the project founder or the challenger. Their votes are invisible to others. In the “REVEAL” stage, voters are required to reveal their votes. If they failed to do so, their voting rights and the corresponding VTH would be confiscated by the contract. After the “REVEAL” stage, either the founder or the challenger needs to “RESOLVE CHALLENGE” to reveal the result of the vote. If the challenger wins the vote, 50% of the deposit by the project founder will be transferred to the challenger once “RESOLVE CHALLENGE” is clicked.
Account Dashboard: Users can stake VTH and “Request Voting Rights”. They can also use the interface to withdraw voting rights by clicking the “Withdraw VTH” button. If a user participated in a vote to resolve a challenge and she is in the winning voting bloc, she can use “Claim Reward” to retrieve VTH disbursed from 50% of the deposit by the losing party (either the project founder or the challenger).
VTH Faucet: To facilitate testing the functionality of VTCR, a VTH faucet is available on the top panel. Users can convert ETH into VTH. The current exchange rate is 1 ETH = 10,000 VTH.