Aug 10, 2022 03:05
HUMAN Protocol’s new Routing Protocol is fundamental to the operation, decentralization, and utility of the network. The core HUMAN Protocol is responsible for execution, while the Routing Protocol is separate from it, solidifying stability of the overall network.
Functions of the Routing Protocol
The Routing Protocol will encourage third parties to contribute to the network by providing the framework for staking, slashing, and reward mechanisms. It will facilitate operations by providing a blueprint to coordinate third party agents contributing to the Protocol.
Tool vendors and businesses can commit HMT to access the network through the Routing Protocol, which runs on a Proof of Balance model.
How it works
An entity that wants to take part in the network must put up a sum of HMT, much like a security deposit, to encourage good behavior. If the user behaves badly, this can be slashed. It also plays an important role in determining operator priority in receiving work.
With governance staking, which is separate, any network operator or user can stake HMT in return for vHMT, a token used for governance voting.
What role does staking play?
Staked tokens can reduce operator fees or collateral conversion costs. It may be possible to introduce a discount mechanism to reduce fees if paid in HMT, instead of other collateral. Minimum lock-up time and unstaking fees can deter flash loan governance attacks.
Alternate conviction voting
The proposal emphasizes alternate conviction voting, where voting power and voter reputation increases or improves with each vote. If one refers valuable projects, solves tasks, or contributes to overall development, voting power will increase.
The model will utilize HUMAN Protocol Reputation Oracles to adjust voting power. Such a system provides strong incentives to contribute to the HUMAN Project.
Market making
DeFi applications like Hummingbot could use the Routing Protocol to offer mechanisms to incentivize network contribution. Slashing will be introduced to discourage bad behavior within the network. For example, if a user attempts to tamper with voting, or refuses to pay Workers in a workpool, their stake can be slashed.
In the case of operator inactivity, payouts from the pool will be frozen for a certain amount of time to serve as a warning.
The post HUMAN Protocol separates routing from execution to enhance network stability appeared first on Invezz.
from Cryptocurrency – Invezz
World Crypto Global
