Sylo Network Incentivisation
Liquidity mining, staking, node incentivisation, and more…
Incentivisation of the Sylo Network is the [undoubtedly fundamental] next step in our vision for a truly self-sustaining decentralised communications network. To achieve this, contributors must be rewarded for providing the decentralised ‘performance-jetpack’ required by dApps like the Sylo Smart Wallet to hold their own against centralised competitors.
The time has now arrived to begin the progressive release of the incentivisation mechanics for the Sylo Network and in doing so, bring further utility to the Sylo Token.
We have designed the initial stages of the network’s token incentivisation with two factors in mind:
- To foster a liquid market for the Sylo Token, ensuring users and Sylo Node operators can easily access the benefits of the network as they need, and
- To bootstrap the Sylo Network with a broad community of Node operators all vested in the ongoing success of the Sylo project.
Incentivisation of the Sylo Network will be achieved via three initiatives. These initiatives are not sequential and will work together to incentivise different components of the ecosystem. They are explored in detail below:
1. Liquidity Mining
Also known as ‘yield farming’, this initiative incentivises the Sylo community to provide liquidity for the Sylo Token on Uniswap V2.
A liquid market, outside of exchanges, is a core component of a well-functioning decentralised ecosystem. Contributing to our liquidity pool benefits everyone. As a liquidity provider, you will benefit by earning fees from transactions on Uniswap that are generated when other users trade Sylo Tokens.
Transaction fees are distributed proportionally to all liquidity providers, so the more crypto assets you stake, the more fees you’ll earn. Buyers and sellers of the Sylo Token also benefit from reduced price slippage in the Uniswap market.
We will be rewarding those who provide liquidity on Uniswap for the SYLO/ETH and the SYLO/wBTC pairs. The reward can be collected by all those that stake their LP tokens into the LP Staking contracts via the Sylo Network dashboard.
The purpose of this initiative is to build the foundations of an engaged community whose incentives are aligned with those of the Sylo Network and Sylo Protocol, as we progress on our journey into the decentralised future.
Liquidity Mining for the Sylo Token on Uniswap will be released in June, 2021. Phase length and reward specifics will be announced prior to launch.
This functionality will be accessible as a simple flow from the Sylo Smart Wallet, making it easy for users to stake their SYLO.
A Liquidity Mining dashboard will also be available on the Sylo website, making it possible for stakers to check in anytime for up to the minute stats. The dashboard will display information such as the Total Value Locked, the current level of Sylo Rewards, the current price of the Sylo Token, and the duration left until the next epoch.
2. Incentivisation of Sylo Node operators to bootstrap the Sylo Network
As a part of the second incentivisation initiative, Sylo Node operators will be rewarded for bootstrapping the network over a period of 100 weeks.
The purpose of this phase is for Sylo Node operators to demonstrate their commitment to operating a node. Each epoch will pay out a fixed number of SYLO to staked nodes on the network. The SYLO will be distributed using our probabilistic micropayment layer.
Service requests will be made to each node in proportion to their stake and will include these payment tickets. All your node needs to do is answer the call and receive the ticket. Winning tickets are redeemed for a share of the SYLO pay out.
3. Incentivised Sylo Network services
As the Sylo Network becomes populated with more Sylo Nodes, we will begin to deploy incentivised services. Nodes being operated to earn rewards will be able to replace the existing non-incentivised service protocols with incentivised services operating on the probabilistic micropayment layer.
The staking mechanism will now allow other users to delegate their stake to your node to increase your node’s weight on the network. The more SYLO staked into your node, the more tickets will be sent your way in exchange for your contribution the the network, and the more recognition you and your delegators will receive.
This service incentivisation stage will overlap with the bootstrapping stage. Node operators will be eligible for bootstrapping incentives in addition to the new service incentives. When the bootstrapping incentivisation phase ends, the service incentives will continue powering the Sylo Network into the future.
We’re incredibly excited to be commencing this phase of our development and bringing it to the community, it’s been a long time coming.
Onward and upward!
Ben Jordan
Sylo Co-Founder & Product Director
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Do you have any further questions about Sylo Network Incentivisation?
We would love to hear from you. Send any queries to us now via DM on Twitter or Telegram.
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