Reward Allocation

Allocating as Governance

This protocol makes the case for semi-transferability as a way to insulate an org from unstable and powerful market forces. Of course, no project can completely remove itself from the fact that people need to be paid and expect some level of income for their work and advice. Fortunately, we can make use of the rewards from the staked asset to disperse through the project nodes, like water flowing through pipes. In the simple case, the rewards are sunk directly into the root artifact and then are allocated to subnodes, creating a fractal payment system.

Much like typical tokens today, HONOR grants holders a duty and power for governing use of protocol revenues. However, unlike the common monolithic models, HONOR governance takes place locally, within each artifact. Vouch holders of an artifact can therefore have a large say in how the incoming flows are used, even if they have very little compared to the total HONOR supply.

The Reward Flow contract allows each vouch holder to set an allocation for each artifact. We can consider the Reward Flow to be a continuous mini-funding round. Each time an amount is paid into this artifact's Reward Flow, there is a chance for one of the allocated priorities to be funded as well, from the available pool. Ideally it would be split proportionally every time, but due to computational limits we have to accept that it will take the form of a Budget Queue.