Initial Distribution Protocol
Last updated
Last updated
The Goal of GoraNetwork's initial distribution protocol as it relates to market thickness is to incentivize early adopters to increase market thickness. Specifically, a well-designed distribution protocol should attract:
1 - early adopters (customers), 2 - honest, high-quality participants (node runners and feed providers) 3 - long term shareholders (community members).
The protocol also needs to scale as the ecosystem matures. The same rewards distributed to early adopters would not be feasible as rewards for later participants. Therefore, the initial distribution protocol can be considered as the initial mechanism to drive early growth, while the Allocation mechanism in the Mechanism Design will dive deeper into how rewards are allocated in a mature economy.
The distribution protocol would have different goals for different participants.
Feed Providers
After a certain period, customer fees will provide enough of an incentive to pay out feed providers. Early on, feed providers will onboard much quicker than customers. The distribution protocol would focus on rewarding feed providers for supplying data to the system at a time when revenue is low or non-existent.
The Gora team may also decide to pay Feed Providers is fiat currency. As many of the feed providers are traditional, web 2 organizations, they may be reluctant to accept tokens or even change their business model. In these cases, GoraNetwork may use treasury funds to pay for 1-2 year reseller licenses in order to ensure the GoraNetwork has high-quality data available on
Node Runners
Node runners will be running the core GoraNetwork infrastructure. Rewards for node runners come from a combination of fees from customers for providing data and running computations, as well as rewards from the ecosystem for participating.
The amount of rewards distributed to Node runners will increase in time. There is a minimum amount of node runners needed for a properly functioning system. Any node runners that join past the optimal number of NRs needed adds marginal security to the system while increasing latency, and reducing the overall rewards available to the system.
The Node Runner rewards come from a pool of rewards. Rewards from the pool are distributed regardless of the number of node runners so that those joining early receive larger shares of the reward pool. Past a certain point, the rewards distributed become smaller, which would disincentivize NRs from joining once the system meets its needs, due to a higher opportunity cost. As the customer base grows, the rewards pool will grow proportionally.
Community Members
Community members will also be key to growing market thickness via marketing activities and liquidity mining. As a fully decentralized application, GoraNetwork will depend on its community members to generate some marketing activities.
GoraNetwork will not be using free airdrops to grow followers, as this has been shown to increase non-committed users, and tends to attract bots and "Token Farmers".
Instead, GoraNetwork will reserve tokens to distribute to product activities that create "sticky" community members. These activities include (but are not limited to) providing liquidity, hackathons, blog/videos/podcasts, and other beneficial activities.
2% of tokens have been specifically earmarked for bootstrapping growth incentives. This section details how this amount will be distributed.
Node Runners
GoraNetwork has set aside 2 Million tokens (or 2%) as adoption incentives for Node Runners. Over the first two years, node runners who commit a minimum of three months to run nodes will be guaranteed an ROI of 5-20%. Node runners who join at the very beginning, and remain for the duration of the bootstrapping period can earn the most, especially through compounding rewards.
Adoption incentives for node runners are in addition to the regular rewards earned from securing the network.
The adoption incentives for node runners are as follows
Months 1 to 3
Minimum 3 months staking
Staking rewards begin accumulating, minimum 3 months so distribution begins after month 3
Months 3-9
20%
On the 90th day, node runners begin seeing rewards for amounts staked between months 0-6
Months 9-15
15%
Rewards for amounts staked between months 6-12 begin being distributed
Months 15 - 21
10%
Rewards for amounts staked between months 12-18 begin being distributed
Months 21-27
5%
Rewards for amounts staked between months 12-18 begin being distributed
Community Members
GoraNetwork has set aside 1 Million tokens from the marketing and partnership pools to reward the community for the activities described here.
Feed Providers
GoraNetwork has set aside 1 Million tokens from its treasury for institutional feed providers who power the system. These amounts ensure that feed providers are incentivized to participate before a critical mass is reached.