DSM staking, delegation plan and first governance proposal
Dear Desmots,
After years and months of hard work by our Desmos team and community, we have officially launched into mainnet on 31 August 2021 at 17:01 UTC! In this newsletter we will be talking about staking your DSM, the delegation plan of Desmos Foundation & Forbole Ventures, and the first governance proposal. But before we start, we would like to thank everyone that has helped us get this far, because without you, we would not have the community we have today.
Stake your DSM to earn reward using Forbole X
If you are currently a DSM hodler then you will know there is a lockup period in which you cannot transfer or sell your tokens. You can, however, stake them.
Once inflation is enabled, your staked DSM will start generating rewards and help tackle inflation. We strongly encourage you to distribute your delegations to multiple validators as it will decentralize and keep our network high-performing and secure.
In order to stake your DSM we recommend using Forbole X, our open source crypto management tool developed by the Forbole team and currently supports Desmos Ledger App. Please follow below guide to learn how to use Forbole X to stake your DSM:
Our delegation plan
In preparation for our upcoming goals, we have prepared a few pools of DSM with the purpose of boosting engagement and building our community. The most significant ones are User Acquisition Fund (“UAF”, 15 million DSM), Desmos Foundation and Forbole Ventures (“DF” and “FV”, each have 12.5 millions DSM).
The first delegation plan will be a difficult one due to the fact that mainnet is still in an early stage. In this plan, we have delegated a total of 15 millions of DSM from DF and FV.
There are 3 factors (with different importances) to determine the weights of different validators:
- Contributions and performances in previous testnets and Desmos community since early 2020 when we started the first testnet;
- Participation in the launch of Desmos mainnet;
- Participation in the previous angel and seed funding rounds.
After we determine the weights according to the above 3 factors, we will use the commissions charged by these validators to adjust the weights again. Validators who charge not more than 8% commission will be entitled to the full weight. The weight of a validator will start to decay linearly if they charge more than 8% commission. If a validator charges above 18% their weight will decay to 0.
While this plan is far from perfect, we will test the waters and make adjustments after the first month of inflation is enabled.
Enabling inflation
At the time of launch, we have purposely disabled inflation in order to give everyone time to stake. Now, with more than 25% of DSM being staked, we have submitted the first on-chain proposal that will enable inflation. If this proposal passes, the inflation will be enabled and set to a minimum of 40% and a maximum of 80%, as described in Desmos Project Plan. You can view the details of this proposal here.
Participating in the governance is an important responsibility of validators. But if you have staked your DSM, you can also vote by yourself using Forbole X.
Please note that the voting period ends in 7 days on September 15 at 06:39:45 UTC.
What’s next
Moving forward, our team will be working extensively to integrate Desmos into applications such as Forbole X and Big Dipper 2.0 while continuously rolling out new features on Desmos. With your interests in mind, we plan to deliver excellent user experiences while keeping true to our mission, to decentralize social media.
Please do not hesitate to give us any feedback and suggestions. To know more about Desmos and stay updated, please follow:
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