Hello from the Finschia Foundation.
On March 31, 2023, Finschia Foundation was established as a new business entity responsible for operating the mainnet and issuing LINK, inheriting the spirit of LINE Blockchain’s “Blockchain for All.” We plan to expand the Web3 ecosystem with various partners and make LINK, a core currency, more widely used. In the first half of the year, we will be operating under a consortium system and then transition to a public environment. In this way, we aim to (1) establish a sustainable token model, (2) generate token demand, and (3) develop into a blockchain used by over 1 billion users.
Finschia Foundation plans to achieve milestones through the following roadmap:
- First Milestone: Launch of Finschia Foundation (done)
- Second Milestone: Activation of Token Economy 2.0 (done)
- Third Milestone: Integration of Daphne and Finschia mainnet
- Fourth Milestone: Transition to a consortium system
Key Roles of Finschia Foundation
To advance toward a public blockchain system, we need to stabilize the Finschia ecosystem with a fair and systematic token economy policy, and activate governance 2.0 to transition to a consortium system.
Transparent and fair token economy 2.0 implementation
- Finschia introduces an inflation mechanism that allows tokens to be transparently issued by the protocol in proportion to the level of ecosystem activation. The LINK token is distributed according to the protocol, with a ratio of 5 (network contribution reward): 3 (service contribution reward): 2 (reserve). The token economics policy, which was built to address inherent problems in the blockchain market, issues rewards fairly based on clear criteria, and as transactions and payments using the token become more active, the value of the entire network increases. In other words, the goal is to build a token economy with a virtuous cycle structure that is fueled by the influx of new users, thereby achieving the usability and universality of the Finschia-based platform.
Finschia Governance for Ecosystem Development
- Finschia Foundation introduces Finschia Governance to promote ecosystem development and transfer mainnet operation policies and major decision-making over to governance. Governance members can propose and promote protocol changes, and the governance will strive to become a community-operated governance through the participation of various stakeholders in governance voting. The foundation supports Finschia Governance to have a positive impact on the entire Finschia ecosystem. After the consortium system, the service contribution reward will be managed transparently through on-chain governance, and the reserve will be managed through foundation-specific functions in the long term, aiming for healthy growth and smooth interaction among governance members.
Contribution Reward for Finschia Foundation, Post-zero Reserve
The Zero Reserve policy, which was introduced at the end of last year, aims to reduce concerns surrounding the risk of reckless token issuance and leverage problems by not relying on pre-issued token quantities.
To support the Zero Reserve policy, Finschia introduces a differentiated strategy called “Contribution Reward.” To become a part of the Finschia ecosystem, it is important to understand what the token economy is. The Finschia token economy goes beyond simply receiving rewards for participation. It provides a virtuous cycle structure that allows the Finschia ecosystem to continue growing in a positive direction by providing rewards to participants in proportion to their contribution to the LINK ecosystem. Unlike the previous token economy, Finschia Token Economy 2.0 implements two core reward policies: Network Contribution Rewards and Service Contribution Rewards.
Principles of Token Economy 2.0
“A design that uses various internet activities to allow everyone to become a part of the ecosystem without initial capital, rewards paid according to contributions made, and an economic system that grows in tandem with network activity and demand.”
What sets Token Economy 2.0 apart?
“The best policy is to create a virtuous cycle environment where everyone can enjoy equal benefits by promoting the activation of LINK through their individual contributions, which leads to an increase in network value.”
“The network reward is for contributing to network security through staking, and the service reward is for enhancing the value of the Finschia ecosystem through on-chain payments and transactions.”
“The Network Contribution Reward is for supporting the stable operation and growth of the Finschia mainnet.”
50% of newly minted LINK will be distributed for mainnet activation, and paid as a network contribution reward to users who delegate LINK to a node in validators that participated in block creation and verification. Some LINK listing exchanges also offer node delegation deposits, making it easy and convenient for users to receive network contribution rewards through the exchange. As part of the compensation for network contributions, the LINK staking service is now available. This service allows anyone to participate by depositing LINK directly onto a node, using a non-custodial LINK wallet integrated with LINE Blockchain Scan, which allows for viewing of Finschia mainnet history. The act of depositing alone contributes to the Finschia network, and the staking reward rate will be adjusted based on the amount of contribution and the total amount of LINK deposited. The compensation rate varies depending on the service-specific operational policy.(>view the reward rate) Afterwards, we are preparing to allow the deposit of LINK to be made not only on exchanges where it is listed, but also on the nodes of various participants in the Finschia ecosystem, with the reward rate varying according to each service’s operating policy. We look forward to the participation of those who wish to contribute to the growth of the Finschia ecosystem.(>stake LINK)
The service contribution reward is “Early Contributor Nomination Awards: The greater the contribution, the greater the reward.”
In the Token Economy 2.0, 30% of the rewards for service contribution are allocated to service operators who promote LINK payments and usage. The size of the rewards that service operators receive is measured based on their quantitative contributions to the LINK ecosystem. By only rewarding substantial contributions, this approach prevents the indiscriminate granting or investment in unproven projects, which has been a problem for many similar projects. In other words, you receive a reward that is commensurate with the amount of LINK payments and usage you make, transparently and fairly. The reward amount determined by a predefined calculation formula based on on-chain data is only paid out from a pool governed by on-chain governance, without intervention from the Finschia Foundation. The contribution evaluation method is proportional to the ratio of the LINK payment amount generated in a specific service among all service contributors. General users can receive monthly rewards for their contributions, beyond one-time rewards, and service developers and operators can onboard to the Finschia network for service contribution rewards through the Finschia token economy, without changing or discontinuing their existing services, allowing them to receive double income from service operation and Finschia token economy-based service contribution rewards. The greater the contribution, the greater the rewards that can be received, and the service contribution rewards are open to all.
Parameters, evaluation mechanisms, detailed LINK issuance and distribution policies for determining the degree of service contribution rewards will be disclosed through the specific service contribution reward policy soon. In addition, we hope you will all take an interest in the governance operation and methods of achieving the Finschia mission, as well as the technical features of the Finschia mainnet and the token economy 2.0 proposed to solve existing blockchain issues, which have been disclosed in the Whitepaper 3.0.
Integration of the mainnet in the future, as well as public blockchain
The Finschia Foundation is now on the brink of integrating its mainnet and transitioning to a public blockchain system. With the integration of the mainnet, NFTs currently operated on the Daphne Chain will also be managed on Finschia, unifying the ecosystem on a single chain. Mainnet integration part of the the process of launching Finschia Governance 2.0, in which Finschia plans to go through a consortium stage to become a public blockchain.
Initial network validation with a small group of validator nodes → governance expansion with a larger set of validator nodes → full public blockchain open to an infinite number of validator nodes
If the Finschia network forms a fully decentralized on-chain governance based on PoS and achieves a balanced ecosystem, the next step will be the mass adoption of Web3. Finschia defines Web3 as “an internet that users own, from which they derive economic value and participate in decision-making for value enhancement.”
Based on its proprietary technology and user-friendly characteristics, the Finschia ecosystem aims the mass adoption of Web3 while maintaining the familiarity and convenience of Web2. This will bring us one step closer to a blockchain that 1 billion people can use, while enhancing decentralization, security, and transparency. The mass adoption of Web3 is achieved through Finschia’s unique contribution and reward policies for its growing demand for LINK and expanding set of use cases.
With the upcoming integration of the mainnet and the transition to a public blockchain system we aim to become a blockchain used by one billion people, and we’re hoping for your enthusiasm and support to help us achieve this goal. Our plan is to not only to achieve LINE Blockchain’s goals and become the blockchain for all, but also to generate the excitement and momentum for Finschia to go above and beyond this goal and connect Web2 and Web3. As a blockchain for all that aims to connect with Web3, Finschia will provide fair rewards for all who participate and contribute to the ecosystem, allowing for the creation of value that circulates through economic activity. Finschia Foundation is here to make this happen.
Disclaimer: The staking, yield farming and swapping activities available on the blockchain mainnet “Finschia” are not regulated and are not provided under the Finschia Foundation license.