Phase 4: Invest in Desmos by Validating
IMPORTANT UPDATE (3 July 2020):
Round-0 of Desmos Tokens is coming in mid of July. Please refer to this deck, introduction and registration form to know more about that.
Please also follow Desmos on newsletter, GitHub, Twitter, Discord and Telegram.
Introduction
Desmos Tokens (“DSM”) is the native staking tokens on Desmos, which is a Cosmos Network chain initiated by Forbole. To build a more decentralized Desmos, one way is to let more people to earn DSM by effort at early stage. This is the aim of Phase 4 of Desmos Primer: invest in Desmos by validating. This post is about the core of Phase 4. Please read this post together with this section to have a complete picture.
DSM
- Role: the native staking tokens to secure and govern Desmos
- Initial supply at genesis: 100,000,000 DSM
- Target price for first private sale: US$0.05/DSM (i.e. US$5M valuation)
- Target start time of first private sale: July 2020
- Target mainnet: Q1 2021
- Participants will be required to complete KYC before they can receive DSM. We will start the KYC before the launch of mainnet.
Phase 4: Incentives for Desmos Validators
Despite Desmos is still in testnet stage, Desmos’ validators are securing the messages on Mooncake. These messages reflect the communications between users which worth something. In light of the above, we designed below program:
- Campaign starts at: 00:00, May 1, 2020, UTC.
- Campaign ends at: 23:59, May 30, 2020, UTC.
- Maximum participating validators: 125
- Maximum reward per validator: 6,000 DSM
The reward for each participating validators in this 30-days campaign will be based on below tiers of performance which is determined by the number of pre-commits they have signed during the campaign:
Participating validators will be required to connect their account at Keybase and two other social networks as a risk mitigation. Desmos team has the sole discretion to disqualify participants for malicious behaviours such as sybil attack on registration.
We will start to review this campaign a few days before its closing and will see if we can run it again every month afterwards.
We will provide special bonus to validators based on their earliest date of joining our testnets (will date back to our first public testnet) and their overall performance. We will keep monitoring validator’s progress and announce the special bonus before mainnet launch.
Eligibility of Forbole’s team
We adopt the practice of Game of Stakes of Cosmos Hub. The validator nodes on Desmos run by Forbole’s team members will not be eligible for getting the reward.
(as of this writing, Leonardo Bragagnolo, Riccardo Montagnin, Monika Pusz and Kwun Yeung are running separate validator nodes on Desmos).
What next:
While the above program is subject to periodic review, our best scenario is to keep this level of reward for our future programs. By doing this, we can distribute as many DSM as possible while keeping this as a genuine reflection of our economic value.
Meanwhile, we are also considering more methods to distribute DSM to contributors:
- Invest by engaging on Mooncake: Mooncake is the “decentralized Twitter” built on Desmos. We will roll out the next version of Mooncake very soon together with its incentive program. But please don’t wait for the next version as we will definitely consider to date back the reward as early as possible. You can download Mooncake here: iOS and Android.
- “Stakedrop”: run 100% commission validator node on the chains of which tokens are publicly listed (Cosmos Hub, IRISnet, Terra, Kava, LikeCoin). The commission income will be used to support the development of Desmos. The delegators will receive DSM in return.
- Airdrop: airdrop to atoms addresses according to its delegation behaviour under a logarithmic scale to incentivize atoms holders to distribute their delegation.
- Token swap: swap DSM with the tokens of other
- Grant: support people who can co-build Desmos (as developers or evangelists)
Invest in Desmos by effort: why you should do it
So far we have not been supported by institutional investors. By joining our incentive program, you invest in Desmos with your time and infrastructure. You should support Desmos as:
- Everyone can participate to Desmos due to its social network’s nature. We can tap into the market of non-crypto natives for not just Desmos but Cosmos and the larger crypto ecosystem.
- As a social network project, Desmos can become the link between various ecosystem chains and softwares (eg. explorers, staking tools, wallets) which bring second order networking effect to the Cosmos ecosystem.
- Desmos is one of the very few non-DeFi projects in Cosmos ecosystem which can enhance the biodiversity in the ecosystem.
- With our background as a successful validator and block explorer, we can help to grow the community which can serve the larger Cosmos and PoS space.
[Disclosure: Desmos is initiated by Forbole. Both Desmos and Forbole are not backed by institutional investors as of the time of this writing. All the investors of Forbole are individuals from family & friends. To help us to kickstart, some Forbole’s investors have made extra support (US$60,000 equivalent in BTC) to DSM at a valuation cap of US$5M in Feb 2020.]
