Consensus Check - #REI DAO #3 Proposal #REI Network Foundation-supported Staking for Encouraging Validators

Consensus Check
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Quorum

2% of the circulating supply (750 million). The purpose of this quorum is to ensure that the only measures that pass have adequate voter participation.

Background

In the current staking mechanism of REI Network, at least 100M must be staked to realize APY. Considering the current voting willingness and the situation of no APY in the early stage, it is urgent that a “first push” in the network to promote the rapid growth of the staking amount in order to maintain network security and stability. This proposal will provide a solution to this problem from the perspectives of applicability and fairness.

Purpose

  1. On the premise of network fairness, the proposal will help the staking amount meet minimum requirements, and help freestake start running.

  2. Accelerate the completion of the node construction, speed up the voting from the community, and increase the staking amount of the entire network.

  3. Boost the key indicators of REI Network such as staking amount, network stability, and node diversity.

Contents

The execution of “Foundation-supported Staking” will be the following four steps:

  1. The proposal uses part of the 150M Ecosystem Foundation for temporary network voting to ensure that the staked amount is 100 million and that all staked $REI in the network can generate corresponding rewards.

  2. For the fairness of network staking, the staking rewards of the foundation will not flow to the official treasury, nor will it be used for other purposes such as marketing. The rewards will flow to the rewards pool, or be airdropped to subsidize staking and achieve the purpose of dynamic balance.

  3. After the staked amount could ensure network security, that is, it exceeds 100M, the token staked by the foundation will be exited in stages and in an orderly manner.

  4. When the network staking amount temporarily dropped below 100M, the Ecosystem Foundation will once again make compensatory supplementary staking to maintain the network’s total voting volume and the running of the freestake-module. The rewards obtained are disposed of in the same manner as above.

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Staking & distribution method:

a. Voting address: 0x80dBC07f22dBBDCC25764A4513ceA84e01D91709

b. Voting principle: The purpose of the proposal is to quickly start the mainnet staking without crowding out the votes spontaneously formed by the community and its accompanying staking rewards. Considering that before the release of this proposal, some REI network builders have set up the nodes which have an initial contribution and guiding effect for the REI Network mainnet switch. For this part of the nodes, we proposed to vote a fixed part of the voting shares to the above nodes as an incentive.

Allocation for different types of nodes:

i. Votes will be allocated to different types of nodes according to the following rules:

Early Nodes:

  • As stated in the “Voting Principles”, in view of the leading contribution of the nodes set up in the early stage to the entire network, the share of the Foundation-supported voting will be allocated according to the number of days of its historical construction, the staking amount of the node and other conditions.

  • The number of votes in this part will account for 25% of the votes in this proposal, in other words, the voting base is 25 million $REI.

    a. Support period: 90 days

    b. Calculation method: It will be calculated by the following two elements

    • Time of the calculation: deadline is when there are 21 nodes in the network

    • Calculation Coefficients & Formulas

      • 1. PeriodRate: the proportion of the number of days after the node was set up, which is the setup date of the node until the day when there are 21 nodes in the network (subject to the block height at that time). This parameter accounts for 60% of the allocation weight.

        PeriodRate = The number of days after the node was set up/Total days
        Total days= The sum of the days of all nodes were set up

      • 2. VotingRate: the current voting weight, is defined as the number of votes owned by each individual node before the end of counting.This parameter accounts for 40% of the allocation weight.

        VotingRate = the number of votes this node has received/the total number of votes in the network

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  • 3. Calculation formula:

    • Votes support from the foundation = 25 Million*(60%*VotingRate+40%*PeriodRate)

    • E.g:

    • Node 1 has been set up for 29 days before the calculation and had already received 750,000 $REI votes. The total number of set-up days of all nodes in the network is 307 days, and the total staking amount in the network is 10 million $REI.

    • The number of votes this node will be supported:

    = 25 Million*(60%*9.45%+40%*7.5%) = 2,069,625 $REI

    So the votes that this node will be supported from the foundation is 2,069,625 $REI

The other nodes

Foundation will support staking for other nodes according to its contribution to the REI Network in the future and the actual staking amount in the network.

  • Contribution to REIcosystem

    The super nodes, as an important part of the REIecosystem, are also related to REI network security and stability. Therefore, super nodes have the responsibility and obligation to develop and promote the ecosystem development of REI Network. The ecosystem development of REI Network is macroscopic and systematic, it involves all aspects of the public chain, such as on-chain protocols, community building, brand building, developer groups, etc. Therefore, nodes with different development backgrounds can explore better paths for the long-term development of REI Network.

  • Industry reputation and influence

    Industry reputation is of real value in the crypto space. REI Network has professional and long-term operations in major crypto markets around the world. Continuing to expand popularity and influence in different crypto markets is one of the team’s important plans. Therefore, REI is glad to support the overall development of the node operator that forms a long-term partnership with REI Network and can greatly promote the development of REI Network.

  • Technical and professional

    It requires professional experience, technique, and professionality to ensure the long-term operation and the stability and security of the network as an operator. There, operation and maintenance capabilities are essential attributes of professional nodes. REI Network welcomes nodes with strength and expertise to participate in node election.

Rule statement

  1. The voting support is time limited. The main purpose of this proposal is to ensure the overall security of the REI Network and the progress of the node election. When the number of votes (excluding foundation support) in the network has reached the number of security guarantees, the voting support will exit the network in an orderly manner to keep the decentralization of the network.

  2. The voting support is selective. REI will make a fair evaluation of the nodes according to their future contribution, professionalism, and influence. We aim to realize the synchronous development of network security and ecosystem growth.

  3. The proposal is open. Discussability is one of the important features of REI DAO governance. All the methods mentioned above, including allocation methods and management processes, are discussable. You are welcome to express your views on REI forums, communities, and other public occasions, and the resolutions achieved on this basis are more reasonable and inclusive.