Sonr token operations and economics.
On Sonr we will be leveraging a delegate stake mechanism in order to optimize buy-in for users in the network. It imposes an excess opportunity cost if slashing is implemented.
With this being said, there are some challenges in implementing staking:
However there is substantial benefit in incorporating a staking mechanism, with the following criteria met we can create a sustainable design:
The clear path for the underlying application for staking is utilizing a Delegated Proof of Stake (DPoS) validation mechanism. Down the line Sonr will provide IPFS storage nodes, and governance participation in the staking model.
Sonr is a Cosmos powered blockchain which is powered by a TenderMint validation mechanism. The default consensus for TenderMint is DPoS and works with our current ABCI implementation for Transaction Verification. DPoS is a twist on Proof of Stake consensus that relies upon a group of delegates to validate blocks on behalf of all nodes in the network . Witnesses are elected by stakeholders at a rate of one vote per share per witness . Coin age is irrelevant. All coins that are mature will add the same staking weight (usually 1 in the wallet hover display) Results in stable, consistent interest only for active wallets and only with small inputs.
When deploying standalone highway nodes, requiring minimum stake would be an additional method to enforce availability requirements. By having a stake we can ensure that the user deploying a node has a base level of buy-in within the ecosystem.
We will be incorporating a similar strategy to AlgoRand in our governance rollout. This is covered more extensively in the Governance section.