Co-hereDAO Staking token

version 0.2

The Co-here Foundation will be responsible to manage development, operations (devops) and ecosystem incentives. The foundation will gradually increase the role of Co-hereDAO stakeholders through contribution channels, engagement and liquid democracy with quadratic voting (also conviction voting).

A two token model

  1. Stable value Local Tokens
    for payments, convertible with collateral reserve.
  2. Co-hereDAO staking tokens
    delegated to nodes, convertible with Local Tokens.

Delegated Co-hereDAO staking tokens will have non-exclusive rights to rewards drawn from collateral conversion fees and collateral withdrawal fees and also voting (liquid & quadratic). Node operators will maintain a minimum stake and receive an additional reward drawn from network transaction fees. The foundation will determine reward size through research and engagement.

Co-hereDAO staking tokens

When Local Tokens are purchased through new collateral deposits to the collateral reserve, Local Tokens are issued to the depositor. When a quota of Local Tokens (~7,000) are issued, an additional amount of Local Tokens (~3,000) are issued for devops (~1,500) and incentives (~1,500).

These additional Local Tokens will be value matched with a parallel issue of Co-hereDAO staking tokens added to the collateral reserve. The Co-hereDAO staking tokens can be acquired through conversion with Local Tokens.

Co-hereDAO staking tokens can be converted to Local Tokens via decentralised nodes which each have their own Local Token liquidity reserves.

Maintaining an 80% ratio of stable assets in the reserve

In preparation for the issuance of new staking tokens, which have a variable value and will initially be placed in the collateral reserve, if the non stable assets in the collateral reserve are approaching the 20% ration, a portion will need to be converted to stable value tokens before new staking tokens are added to the reserve. This is in order to maintain a collateral reserve with at least 80% held in stable value assets.

Localised Nodes for staking and conversions

The Co-here Local Token network will be distributed through nodes at the four locality levels: global, national, city / regions and villages.

Node operators will be considered as merchants providing technical and financial services. They can self nominate their operation and service area at a locality but will require proof of registration of appropriate business accreditation for operating in the jurisdiction. Node operators will need to stake and maintain a minimum amount of Co-hereDAO stake tokens and stake Local Tokens in a liquidity reserve for local node conversions.

Delegation of staking tokens & receiving rewards

The Co-here wallet will provide a directory of registered nodes with statistics and the facility for staking token holders to delegate their tokens and track their rewards. Rewards are distributed in Local Tokens and added to the local liquidity reserve. Stakeholders will be able to withdraw or convert their share of staking and Local tokens.

Staking requirements

Node operators maintain a minimum stake as well as the technical operations. Staking token holders delegate to nodes up to the maximum stake limit. There may be several nodes at each locality. If they grow too large they could split in to two or designate to a higher locality.

Validator node stake with liquidity pool depth

Village node : $10k min – $50k max
City / region node : $40k – $200k
National node : $200k – $1m
Global node : $1m – $5m

Stake Rewards

Stakeholders rewarded in Local Tokens.
Distributions added to node liquidity reserve:
Global node : 3.72% APY
National node : 3.81%
City / region node : 3.9%
Village node : 4.0%

Limits are placed on stake pool sizes and rewards for each node at each level, between min and max range, to encourage decentralisation, load balancing between nodes + liquidity pools at each level and reduce price speculation.

Two methods to reduce volatility and speculative trade

Local Token and Co-hereDAO token conversion price stabilisation

  1. Demand pricing for conversion fees
  2. Delayed staking token conversion fee discount

Demand pricing : conversion fees
(between Local Tokens & non stable collateral assets)

Demand : Conversion fee (example figures)
.2x : -0.1% negative fee
.5x : 0.0%
1.0x : 0.1% default fee
1.5x : 0.2%
2x : 0.3%
3x : 0.5%
4x : 0.7%
5x : 0.9%
6x : 1.1%
7x : 1.3%
8x : 1.5%
9x : 1.7%
10x : 1.9%
11x : 2.1%
12x : 2.3%
13x : 2.5%
14x : 2.7%
15x : 2.9%
16x : 3.1%
17x : 3.3%
18x : 3.5%
19x : 3.7%
20x : 3.9%

Delayed Co-hereDAO staking token conversion : fee discount
Two steps: initiate & finalise or cancel, priced on conversion.

Delay : fee discount (example figures)
365 days : 0.75%
180 days : 0.7%
90 days : 0.65%
60 days : 0.6%
30 days : 0.55%
14 day : 0.5%
7 days : 0.45%
4 days : 0.4%
2 days : 0.35%
1 day : 0.3%
12 hours : 0.25%
6 hours : 0.2%
3 hours : 0.15%
2 hours : 0.1%
1 hour : 0.05%