4 More Reasons Why You Should Stake DAPP
How Staking Is Constantly Evolving on the DAPP Network
For blockchains looking to achieve scale, staking has emerged as the clear favorite for a consensus mechanism that is both energy-efficient and high-throughput. The utility of staking has also expanded beyond consensus to encompass functions such as depositing collateral into a vault and allocating memory, bandwidth and other resources on public blockchains. From the Ethereum community to Chainlink and beyond, staking is integral to the scaling plans of many projects as they look to take it to the next level.
Meanwhile on the DAPP Network, staking has been live since day one and is constantly evolving with new utilities and advantages. In this article, we briefly revisit how staking works on the DAPP Network, and we detail 4 more reasons why you should get involved by staking DAPP.
How DAPP Staking Works?
The DAPP Network extends the scope of staking beyond both achieving consensus and reserving network resources. DAPP Service Providers (DSPs), a new layer of on-chain vendors, offer a variety of services to developers including extra memory (vRAM), free virtual accounts (LiquidAccounts), trustless web oracles (LiquidOracles), domain names services (LiquidDNS), and more. Service packages designed by the DSPs set out exactly which utility is being offered and at what cost.
However, instead of incurring a recurring monthly cost in order to access these service packages, developers purchase DAPP tokens upfront and then stake them towards the package of their choice. DSPs operate in a completely free market and have full autonomy when designing service packages, deciding on specifications such as the package duration, quota of available actions, and minimum staking amount, among other things. In exchange for services rendered, DSPs receive a portion of DAPP token inflation proportional to the sum total of DAPP tokens staked towards their service packages out of all staked DAPP tokens on the DAPP Network.
While the last two paragraphs give a good basic understanding of staking on the DAPP Network, they’re merely scratching the surface. In an article published earlier we went through some ideas of how staking can be utilized on the DAPP Network.
Now we’ll look at another 4 reasons why you should stake DAPP Tokens and participate in the optimal demonstration of the staking economy.
- Hold DSPs Accountable
- Boost Your Favourite Teams with Leasing Markets
- Spin Up Your Own LiquidChain
- Support the CoVax Efforts Against COVID-19
A staking renaissance is happening on the #DAPPNetwork.
Staking DAPP is becoming key to unlocking powerful utility for users and developers alike as the network continues to evolve.
#KeepCalmAndStakeDAPP
Hold DSPs Accountable
Successful tokenomic design involves configuring a network in such a way that users maximize the growth of the overall network by pursuing their own financial interest. Making it worthwhile to play fair and disincentivizing bad behavior is key to a well-functioning ecosystem.
Through a combination of staking and transparent record-keeping, the DAPP Network creates a natural incentive for DSPs to remain honest. Any time a user stakes to a DSP service package, both the Service Level Agreement (SLA) between the parties, and the DSPs subsequent delivery of the service is kept on-chain. Should the service provider fail to match up to the agreed-upon standards, the user can simply unstake their tokens which causes the DSP to miss out on any future inflation.
As a DAPP token holder, you are more than just a spectator. By staking towards DSP service packages, you are enhancing the accountability and quality of service which ultimately sets the DAPP Network apart from the others.
Boost Your Favourite Teams with Leasing Markets
Leasing markets for resources allow developers to access resources on a ‘pay-as-you-go’ model, bringing efficiency to resource allocation. Developers require these network resources, such as storage, computation, and memory, in order to build and operate smart contracts. Yet, the scarcity of these resources on public blockchains means that there is always uncertainty as to whether a developer has sufficient resources to maintain their dApps.
With leasing markets, developers can access a pool of resources provided by the community in exchange for a flat fee. Blockstart first showcased the capabilities of leasing markets when they enabled this functionality a few months ago, and they have since been joined by Chintai which is currently running their DAPP leasing platform on the Kylin testnet.
Staking towards these leasing markets is an optimal way to increase the overall pool of resources developers have at their disposal. This will allow for dApps and projects to scale and reach mass adoption without worrying too much about resource constraints holding them back.
Furthermore, with the DAPP Network-enabled on multiple chains, users could even potentially stake for developers on a different chain. Both Telos and Wax have integrated the DAPP Network, which means that the utility of DAPP staking is no longer confined to a single chain.
Spin Up Your Own LiquidChain
LiquidChains is a blockchain-as-a-service solution running on the DAPP Network that allows anyone to spin up customizable chains and connect them to a public network (if they want to.) Chain creators pick their validators and configure their LiquidChain with any combination of providers that wish. They could also decide on a consensus mechanism for the chain, one that incorporates the novel staking mechanism of the DAPP Network. Once these LiquidChains have been created, they are instantly compatible with the range of scaling services available on the DAPP Network, such as LiquidStorage, LiquidHarmony and more.
LiquidChain use-cases include:
- Enterprise Blockchain: Businesses exploring blockchain technology face a unique design dilemma when deciding on the underlying infrastructure for their applications. While public blockchains offer advantages such as enhanced transparency and interoperability, they cannot match private chains in terms of privacy, reliability and reducing resource costs. Private chains seem to be the infrastructure of choice for enterprises building within ecosystems such as Ethereum, EOSIO and Hyperledger. Yet, they lack real-time auditability and the ability to interface with other applications on public blockchains. Spinning up a LiquidChain and connecting it to a public network (if they so wish), gives enterprises a way around this dilemma by allowing them to harness the best of both public and private chains. While the bulk of the activity takes place on the gas-reduced, trust-minimized Liquid Chains, a connection to a mainnet can still be maintained in order to record the LiqudiChain’s state and access mainnet liquidity.
- Distributed Computing Project: CoVax, the first LiquidChain to go alive, was initiated as a community project to fight against COVID-19 by creating a pool of computing resources for use in scientific computation. Researchers, particularly those working on a vaccine, need vast amounts of computational power in order to perform tasks such as molecular structure simulations, protein folding and AI modelling. These tasks are essential to understanding how the virus travels, evolves and mutates, and to help discover what treatments are effective in stopping its spread. The CoVax app will allow anyone to donate processing power from their phones, desktop or GPUs towards the shared resource pool. On the other side, any researcher that is working on a biomedical effort and needs access to additional computational power could tap into CoVax for that very purpose.
- Application-Specific Shard: Sharding is a scaling technique that splits a single blockchain into many smaller shards, each of which process its own activity while remaining connected to both other shards and the ‘main chain.’ dApps, and DeFi dApps in particular, can utilize sharding to create an application-specific LiquidChain just for them that would run parallel to the ‘main chain’ and connect to it if they so wish. By utilizing DAPP Network services running on that LiquidChain, dApps can offload storage, computation, data and other tasks to their LiquidChain and use the main chain as a lightweight way to record state.
Whether you want to run a custom shard for your dApp, launch a consortium chain to serve as a joint ledger between multiple enterprises, or create a distributed computing project like CoVax — staking DAPP tokens is the key to unlocking feature-rich, interconnected LiquidChains.
Support DSPs Running CoVax
COVID-19 threatens us all, and we can all play a role in mitigating the effects of the virus. CoVax isa community-driven effort initiated by LiquidApps to support the fight against COVID-19 with the aid of blockchain technology. The CoVax app will allow users to donate processing power from their phones and desktop to researchers in search of a vaccine, and it will run on its own dedicated LiquidChain. Researchers could use the additional power to streamline computational-heavy tasks such as modeling the molecular structure of the virus and using protein folding to understand how it infects humans and use that information to stop its spread.
The DSPs running infrastructure for the CoVax LiquidChain are doing so out of the goodness of their heart. Without them, the CoVax LiquidChain would not be able to function. In the spirit of mutual responsibility, community members could stake DAPP tokens towards the CoVax DSPs as a show of support for the amazing work that they are doing. LiquidApps plans to stake DAPP tokens towards the CoVax efforts.
Be A Part of the Staking Evolution
We are witnessing an economic renaissance driven by the novel staking mechanism on the DAPP Network. Staking towards DSPs empowers the DAPP Network, no matter the cause. DAPP staking is constantly evolving and we invite you to discuss, together with LiquidApps’ team and the DAPP Network, additional ways it could provide value to DSPs, developers and users.
Everyone can be an active player on the DAPP Network. With many sleek DSP portals providing a seamless user interface to a wide variety of service packages, DAPP staking has never been easier and more worthwhile. Visit your favourite DSP portal to get those DAPPs staked.
