Staking on every node…PIP173

The PRüF team has formally adopted protocol improvement proposal 173 which amends the staking protocol to allow token holder staking and earning on all ACNodes.

PIP173 means that token holders will be able to stake on any ACNode in the system. Token holder rewards will be determined by node revenues, distributed among the node stakeholders.

ACNodes are the customer-facing endpoints of the PRüF infrastructure. Brands, agencies, or artisans operate ACnodes through which NFT’s are created to represent products or other brand assets. ACNodes generate revenue based on monetized services and business logic provided by the node operator.

Under the current proposal, 95% of node revenue goes to the node operator. Of the remaining 5%, A fixed 2.5% is divided among stakers on the node. The remaining 2.5% will be diverted to the PRüF Foundation. It is important to note that these are percentages of network fees, not of transaction volume. For example, 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.

Decentralized Governance : With staking possible on all nodes, unbiased holders will flock to the most profitable nodes to stake on. The amount of stakers is balanced by the dilution of the stake revenue pool by stakers, reaching an equilibrium based on the opportunity cost of staking. Nodes will be given voting weight in community governance based on the number of staked tokens delegated to their node. This incentivizes economically motivated governance of the PRüF governance DAO, which will work in conjunction with the PRüF foundation to ensure a healthy, vibrant platform for users, Node operators, and token holders.

As currently planned, any staker will be able to propose a resolution. A resolution must meet a quorum of support by node holders to be brought to a vote. This would typically be achieved by out-of-band advocacy. After crossing the threshold to trigger a vote, a resolution must gain 51% (or more, which may be established in the proposal) of the support of a quorum of node holders. Quorum sizes may also be increased (but not diminished) within the proposal framework. Nodes that participate in the vote will receive an incentive drawn from global node earnings. Resolutions will be limited to one per 6 epochs and will be lifted from the table in the order of the quorum numbers. Resolutions that fail to make a vote within 12 epochs will be postponed indefinitely and must be revived through a new quorum of support. Mechanisms to prevent unwanted vote concentration and to limit other potential perverse incentives are currently being developed, and will likely be patterned after existing successful solutions.

The developer team is working the revised staking protocol mechanisms into the core contracts, and is expected to roll out staking rewards on the testnet with a future contract release.

Along with offering token holders a source of passive income, node staking is expected to bring a vibrant guidance mechanism to the PRüF community; empowering token holders and node operators alike to steer the platform to prosperity and dynamic growth. — The next-generation NFT platform of choice for Brands, Artisans, Content Creators, and digital provenance.