Routing Protocol staking
The Routing Protocol unlocks a new era of utility for holders of HMT. Included in this are: staking via DeFi, Proof of Balance for operators, and governance staking.
The Routing Protocol enables new potentials for staking. This is a case, not of what is possible, but what could be possible because of the Routing Protocol. For example, a DeFi project (such as an automated market maker), could incentivize any user to contribute to the network.
This was previously not possible through HUMAN Protocol, which remains strictly an execution layer. The Routing Protocol is designed to decentralize the network by rewarding and supporting third party participants. As such, staking via DeFi to support the network is just one potential consequence of its design.
An operator must deposit HMT to access the network. Operators include Requesters who launch jobs, the network of oracles, and, in short, every third party entity that wishes to contribute to and access the network.
This sum of HMT is a way of promoting constructive behavior in the network, because it can be slashed, or frozen. For example, if an Exchange Oracle fails to distribute tasks to workpools, it can have its deposit slashed (or be subject to a soft freeze prior to formal slashing).
The operator’s Proof of Balance is a way of determining their stake in the network. It, therefore, is one factor in determining their priority in receiving work.
Anyone in the network can stake and lock their HMT to receive vHMT, a token which entitles the holder to voting rights. This is a vital part of decentralizing the decision making process within the network, and allowing for transparency in network decisions.
There are endless examples of the issues which could be put to a vote. Token burn mechanics are one such example. The community could decide whether or not to burn the HMT which is accrued as a transaction fee, for example.
For the latest updates on HUMAN Protocol, follow us on Twitter or join our Discord. Alternatively, to enquire about integrations, usage, or to learn more about HUMAN Protocol, get in contact with the HUMAN team.
The HUMAN Protocol Foundation makes no representation, warranty, or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information contained here. Any assumptions, opinions, and estimations expressed constitute the HUMAN Protocol Foundation’s judgment as of the time of publishing and are subject to change without notice. Any projection contained within the information presented here is based on a number of assumptions, and there can be no guarantee that any projected outcomes will be achieved.