DIA Insights
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DIA Insights

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.

Allocation

The allocation of tokens is divided in 5 main categories:

  1. the ‘Ecosystem Token Pool’, which is explained in detail in another post,
  2. the tokens held by the team and advisors,
  3. early project backers.
  4. 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.
https://etherscan.io/token/0x84cA8bc7997272c7CfB4D0Cd3D55cd942B3c9419#balances

Governance Token Distribution Mechanisms

DIA will start decentralising its governance through multiple governance distribution mechanisms including the bonding curve distribution, incentivising Governance Token usage and holding, and an ecosystem token pool reserved for innovative projects and governance participation.

1. Bonding Curve Distribution Mechanism

DIA will distribute the DIA Governance Token through a bonding curve distribution, starting on the 3rd of August 2020 at 02.00pm (CET) to key DeFi market participants and the broader DeFi and blockchain ecosystem.

2. Continuous Stakeholder Distribution Mechanism (CSDM)

DIA is setting crypto economic incentives for DeFi applications and its users to use and demand transparent oracles. DIA believes that a system which directly rewards the usage through economic incentives will drive adoption and result in a more sustainable ecosystem. CSDM is funded by the DIA Ecosystem Token Pool (more on the DIA Ecosystem Token Pool in an upcoming Medium article).

  • 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

DIA will implement an interest distribution function that will incentive the holding and distribution of the governance token. The provided yield can be used to create an optimal price and distribution function to reduce the DIA Association holding pool. Yield will be provided initially through our own open source smart contract and later on integrated in other lending solutions if applicable. Interest is initially funded by the DIA Ecosystem Token Pool. DIA Association anticipates that additional DeFi applications will provide yield for DIA Governance Token holders in the near future.

4. Stakeholder Participation Mechanism

DIA wants to encourage all stakeholders independent from size and economic ability to participate and earn governance tokens. The Stakeholder Participation Mechanism is funded by the DIA Ecosystem Token Pool.

  • 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

  • Voting on governance issues
    Any issue pertaining to the association and its platform that has severe implications will be put up for voting by means of the governance token. Any token holder can participate and cast their vote. In order to propose changes on the platform or its governance stakeholders require a holding of 1,000 tokens. Voting rights can be delegated to a stakeholder.
  • Validating data through staking
    DIA tokens can be staked to incentivise the validation of existing oracles, scrapers, methodologies and more.

About DIA

DIA (Decentralised Information Asset) is an open-source, financial information platform that utilises crypto economic incentives to source and validate data. Market actors can supply, share and use financial and digital asset data.

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DIA Core Team

DIA is a multi-chain, end-to-end, open-source data and oracle platform for Web3. https://go.diadata.org/