Co-hereDAO Staking token

version 0.1

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 and quadratic voting.

A two token model

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

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

Co-hereDAO staking tokens

When Local Tokens are purchased through collateral deposits to the collateral reserve, and 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 an issue of Co-hereDAO staking tokens and added to the collateral reserve. The Co-hereDAO staking tokens can then be purchased or sold back to the collateral reserve.

Nodes

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 merchants and self nominate their operation and service area at a locality. Node operators will need to provide a minimum amount of Co-hereDAO stake tokens and Local Tokens in a liquidity reserve for local conversions.

Staking requirements

Validator node depth including their own liquidity pools
Village node : $10k min – $50k max (confirmations only)
City / region node : $50k – $200k (block producers)
National node : $200k – $1m (block producers)
Global node : $1m – $5m (block producers)

Stake Rewards

Paid to stakeholders in Local Tokens.
Payments added to stake in local node liquidity reserve:
Global node : 3.72% APY
National node : 3.81%
City / region node : 4.9%
Village node : 4.0%

By Limiting the stake pool size and reward cap for each node at each level, somewhere between min and max range, it would encourage decentralisation, stake load balancing between several nodes + liquidity pools at each of these levels.

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%