fbpx
QQQ
-0.44
337.55
-0.13%
DIA
-0.30
338.19
-0.09%
SPY
+ 0.21
411.28
+ 0.05%
TLT
-0.06
137.57
-0.04%
GLD
-0.96
164.22
-0.59%

PRüF Adopts A New Protocol That Will Allow Token Holders To Stake On Every Node

March 30, 2021 9:58 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

In a recent company announcement seen on Medium earlier this month, PRüF, an NFT launchpad that allows content creators and developers to create branded, self-monetizing, feature-rich, and standards-compliant tokens for their brands, will allow all token holders to stake on every node. This is according to a new protocol that has been adopted by the project termed protocol improvement proposal 173 (PIP173).

The proposal suggests that token holders should be able to stake on any Asset Class Node(ACNode) in the system. Rewards token holders receive will be determined by node revenues that are distributed among the node stakeholders.

PRüF is one of the few projects trying to take over the relatively new NFT marketplace. They have launched a protocol that allows users to launch their NFT projects within minutes by defining the characteristics of their tokens and brand without writing a single line of contract code.

ACNodes represent the customer-facing endpoints on the PRüF protocol. Artists, brands, and agencies operate these nodes, which allow them to create their own customized NFTs that represent their products and other brand assets. These nodes are responsible for generating revenue based on monetized services and business logic that the node operator can configure in the ACNode control panel or provide in their own systems.

95% Of Revenue Should Go To Node Operators

The proposal stipulates that 95% of all the node revenue should go to the node operator. The remaining 5% will be divided among the stakers on the node and the PRüF foundation equally, i.e., 2.5% for both. However, you should note that these percentages are for network fees and not transaction volume.

The following example is given "an in-network transfer of a PRüF enabled item could be priced at 1 pruf in-network fees. In this example, the node operator would receive 0.95 pruf, the stakers 0.025, and the PRüF foundation 0.025."

The proposal is expected to inspire decentralized governance since staking is allowed on all nodes. This should see unbiased holders of the network tokens flock to the most profitable nodes where they can stake. The number of stakers will be balanced by diluting the stake revenue pool by stakers which should reach an equilibrium based on the opportunity cost of staking.

Nodes will have voting weight within the community governance model. The weight will be determined by the number of staked tokens within a given node. This creates an economic incentive that should aid the governance of the PRüF governance DAO, which works in collaboration with the PRüF foundation to guarantee a healthy, vibrant platform for users, token holders, and node operators.

The proposal outlines a plan where any staker has an equal chance of proposing a resolution that should garner enough support from node holders before it's voted on. This will be achieved through off-chain social channels Once the resolution passes the necessary steps to trigger a vote, the resolution should gain 51% or more support from the node holders to pass.

A Work In Progress

The proposed framework suggests that the margin of node holders engaging in passing these resolutions can be increased but not reduced. There is a global node earning which should incentivize nodes to participate in voting. As for resolutions, they will be limited to one per 6 epochs. They will be lifted from the table based on the quorum numbers.

The resolutions that fail to make the vote within 12 epochs will be postponed without a timeline. The only way they can be revived is through a new quorum of support. Since the proposal is a work in progress, mechanisms to prevent unwanted vote concertation and limit other undesired incentives are being developed and will be added after other successful solutions.

Posted-In:

Cryptocurrency Markets

Related Articles

Could GameStop Be Getting Into NFTs?

Two of the biggest storylines in the market for 2021 could be merging with GameStop now being mentioned as a company getting into NFTs. read more

IPO Preview: Coinbase, AppLovin, TuSimple Highlight Big Week Of Market Debuts

The week of April 12 is shaping up to be a big one for public debuts, with many investors watching the highly anticipated direct listing of Coinbase. Here's a look at the Coinbase IPO and other companies set to go public this week. read more

$760M Worth Of Bitcoin Transferred From Coinbase Ahead Of IPO, Report Shows

Bitcoin (CRYPTO: BTC) has been fluctuating around the $60,000 levels slowly but steadily approaching its all-time high price after breaking through $60,000 again earlier today. What Happened: Bitcoin's price increased by nearly 22% from its 24-hours low of $50,278 to a high of $61,199 before correcting to just over $60,000. read more

Why Uniswap (UNI) Cryptocurrency Is Up Over 20%, And What UK Bank Has To Do With It

Uniswap's (CRYPTO: UNI) price increased by over 20% as a United Kingdom challenger bank decided to offer exposure to it to its customers. What Happened: The price movement follows an April 8 announcement by bank Revolut that it will offer exposure to the token to all of its customers. read more