Energy Web
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Energy Web

Energy Web Token Staking Roadmap

Real cash flows generating staking rewards

Zug, Switzerland — 15 December 2021 —
Energy Web Token (EWT) staking will be launched very soon. This will be the first step of the Energy Web Community to move the decentralized Service Level Assurance (dSLA) platform from the research phase into the production phase. A very important step for democratized energy markets to function. In these markets, the grid operators will be procuring energy services (supply, demand, store) from the new prosumers. Those who have invested in green energy assets like electrical vehicles, rooftop solar, home batteries etc.

Staking will be a crucial component of this new energy grid to operate. The decentralized operators of the grid need to guarantee the availability of their service. Like the markets operate today. This decentralized Service Level Agreement will provide a decentralized curation and trust mechanism on the platform. To our knowledge, EWT staking will be the first utility token staking linked to real-world cash flows.

What you will experience when you stake your EWT is that you need to create a DID that is authorized to stake. We are testing this functionality for a couple of reasons:

An industry first, staking for identified devices (people) only, the tech behind the scene

When you put in your email address to identify yourself, a new request will be sent to the decentralized identity-cache. Next, the “KYC issuer server” will receive this message and send you the email to verify yourself. Once you click on the link, this request will be flagged as verified and the newly issued Verifiable Credential (VC) is sent to the requestor, Again via the identity-cache. For those who do not know: a VC is a form of machine-readable credential that is cryptographically secure and privacy-respecting. A VC is bound to a DID in a DID Document and thus linked to an identity. When you go back to the staking page, you can actually see that the request has been approved (by clicking in the email). Then you will add this VC to the on-chain smart contract to prove that it has a “KYC” role issued by a verified issuer (yourself in this case, but that can be anyone in the future depending on the governance). Only when you have this role issued will the contract allow you to stake. This is the first ever implementation of on-chain staking with DID+VC+SmartContract authorisation+Off-chain verification. We will be testing this when we launch and foresee the following phasing for testing the total concept.

Phase 1, testing the staking system from start to finish

In the first phase, staking rewards will be fixed and dependent only on the amount of EWT deposited into the staking contract. Energy Web Community Fund will pay compounding rewards every hour. This corresponds to 21.79% annually. This first stage is necessary to test in the real world 2 essential components of dSLA:

Phase 2, testing the system with multiple service providers

We are planning on launching the first service nodes operated by 3rd party service providers. As per the dSLA architecture, each service provider will be able to launch their own staking pool and invite patrons to stake EWT there. The rewards distributed to the staking pools will be performance-driven, but the service providers will have flexibility when deciding how to reward the patrons. There will be no slashing of the staking pools, but the poorly performing service providers will not receive any rewards.

This mechanism is designed to promote high-performance services, as patrons will move their stakes to providers with the best service performance. A higher amount of EWT stakes will attract higher staking rewards and more clients subscribing to services. This mechanism driven by token economics will provide a decentralized curation mechanism on the platform.

The crucial component of the dSLA platform is the Watchtower infrastructure. Watchtowers issue service performance reports about every service provided in the Utility Layer. As mentioned above, providers’ payment and staking rewards are dependent on the quality of the services they provide, and the performance reports document and determine the quality of their services, so Watchtowers determine the payments and staking rewards.

We will conduct early live tests of the Watchtower infrastructure in phase 1 in order to have it operational in phase 2, to support the service level assurance of the node providers.

Once this is done, our main focus will be on increasing the number of Utility Layer service nodes and onboarding clients and service providers. Depending on the adoption rate, our ecosystem can be fully decentralized and market-driven in 2023. EWT staking rewards will then be generated by real-world cash flows and distributed on a performance basis to the best-performing service providers and patrons who stake in their staking pools.

At that point, dSLA will be able to support the global clean energy transformation and provide enterprises and software companies with secure, convenient solutions able to serve hundreds of millions DIDs across all the flexible and renewable energy devices. To learn more about dSLA and Utility Layer services and DIDs please read our light paper: dSLA-Lightpaper.pdf

About Energy Web
Energy Web is a global, member-driven non-profit accelerating the low-carbon, customer-centric energy transition by unleashing the potential of open-source, digital technologies. Our Energy Web Decentralized Operating System (EW-DOS) enables any energy asset, owned by any customer, to participate in any energy market. The Energy Web Chain — the world’s first enterprise-grade, public blockchain tailored to the energy sector — anchors the EW-DOS tech stack. The Energy Web ecosystem comprises leading utilities, grid operators, renewable energy developers, corporate energy buyers, IoT / telecom leaders, and others.

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Energy Web

EW is a global, member-driven nonprofit accelerating a low-carbon electricity system through open-source, decentralized, digital technologies.