Virtual Staked Asset

Staking to Farm HONOR

By locking up a yield-bearing staked asset to the protocol, an investor can trade the monetary rewards for a share in the reputational side, over time. This tradeoff can be considered recognition for supporting the project and builders, while also entitling them to a share in future rewards.

While committing a larger share of staked asset will convert to a proportional share of the farming yield, the amount of inflation can also vary as a (possibly quadratic) function of the total staked asset base.

Geras is the main smart contracts in this system used to represent and manage the staked asset and financial value within the HONOR-code system. The duration and size of a vouched holding, combined with the available Geras that accumulates at an artifact and the conversion rate from Geras to rewards, determines the total reward paid out to each holder.

For an additional layer of decreased concentration, the protocol could consider connecting payouts to another square root of the accrued Geras. This system thus can implement quadratic payouts if the organization decides to, although this creates another source of Sybil incentive. With extra measures such as fixed fees and time bonus, the worst effects of Sybil swarms can be reduced.