DIA’s Governance Token

The DIA governance token is designed to empower the broader DeFi ecosystem to drive the creation of a fully transparent and community owned, open-source Oracle platform. This piece will detail DIA’s plans to distribute the token.

DIA
DIA
Jul 14 · 5 min read
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Oracles are designed to provide an integral and essential part of the DeFi ecosystem infrastructure. This infrastructure is governed through a token — the DIA Governance Token — which shall be held by a decentralised community of DIA token-holders and their delegates.

DIA believes in a financial ecosystem that is owned, controlled, and maintained by its users. The DIA Association is distributing the DIA Governance Tokens through different mechanisms to meaningful stakeholders to accelerate decentralisation for the entire ecosystem. DIA Association is creating the DIA Ecosystem Token Pool to fund the different distribution mechanisms.

Allocation

  1. The supply made available during the bonding curve distribution from August 03 through August 17,
  2. the ‘Ecosystem Token Pool’, which is explained in detail in another post,
  3. the tokens held by the team and advisors,
  4. early project backers.
  5. The remaining tokens are kept in the association reserve and will be put to use as decided by DIA Governance Token holders. The first specific allocation proposals are currently being fleshed out and will be described in a separate post on our Medium account.

Governance Token Distribution Mechanisms

1. Bonding Curve Distribution Mechanism

Token Bonding Curves are sustainable, transparent and fair, as they effectively distribute governance, align interests between team and community, ensure accountability and incentivise early adopters, community development and usage of the governance token long-term.

2. Continuous Stakeholder Distribution Mechanism (CSDM)

Distribution of DIA Governance Tokens through CSDM will be done through:

  • Proof of Truth
    Smart contracts using DIA oracles will receive DIA Governance Tokens on a daily basis. Distribution will be allocated based on the smart contract asset holdings. Daily token distribution will be allocated linearly to the top 100 smart contracts depending on their percentage of total assets of applications of the total contracts. A smart contract can only receive 15% of total daily distribution.
    Proof of Truth Distribution will begin December 1, 2020. To qualify for distribution, smart contracts need to send a daily Proof of Truth transfer with the hashed DIA oracle price of the previous day. Claims from the pool of DIA Governance Tokens collected through Proof of Truth are required to be a minimum of 1 DIA. Details on technical implementation will be published on Github.
  • Proof of Use
    Applications that are built on smart contracts that qualify for Proof of Truth distribution can opt for a Proof of Use distribution for their users. All DIA Governance Tokens distributed through the Proof of Truth mechanism from DIA Governance Pool will be allocated to the end-users of the application. Application users can claim their DIA Governance Tokens from the Proof of Truth token allocation of the applications’ underlying smart contracts.
    DIA Association is providing an open-source implementation to applications. Proof of Use smart contracts will be maintained by the proof of truth recipient, hence the application. Proof of Use will be tested in Q4 2020. Details on technical implementation will be published on DIA Github and in the participating DeFi applications’ technical documentation.

3. DIA Interest Allocation

4. Stakeholder Participation Mechanism

  • Funding data collection
    Data seekers can put bounties on specific data needs. Data suppliers who build scrapers to source particular sets of data will be rewarded with a bounty upon completion of the work.
  • Incentivising platform development
    The DIA platform will be developed by its community and token holders. Any feature that is desirable can be suggested, voted on, funded and worked on by the DIA developer community.

Governance Token Functionalities

  • Validating data through staking
    DIA tokens can be staked to incentivise the validation of existing oracles, scrapers, methodologies and more.

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About DIA

DIA Insights

Updates and insights about the developments on DIA — an…

DIA

Written by

DIA

DIA is a Swiss non-profit association that provides open-source access to crowd-verified financial and digital asset data.

DIA Insights

Updates and insights about the developments on DIA — an open-source platform for transparent, reliable financial and digital asset data built on blockchain.

DIA

Written by

DIA

DIA is a Swiss non-profit association that provides open-source access to crowd-verified financial and digital asset data.

DIA Insights

Updates and insights about the developments on DIA — an open-source platform for transparent, reliable financial and digital asset data built on blockchain.

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