While Attrace aims to unlock the value of "word-of-mouth" in web3, the $ATTR token and the community are central to providing the protocol's security, trust and sustainable growth. Attrace tokenomics comprise three key aspects where $ATTR will play a crucial role: Oracle Staking, Referral Farming and Governance.
The $ATTR token key role is to provide sufficient security and trust in the network of Oracles via staking. Through the rewarding and slashing [what is ‘slashing??] mechanism, staking compels the Oracles to detect and capture the “added value” via “world of mouth” marketing in a truthful manner. Staking with Oracles will become possible once the Oracle network becomes public (see roadmap).
Oracles will be possible in one of the two ways:
Staking by operating an Oracle
Those who stake a required amount of $ATTR tokens will be able to run their own Oracle. They will be rewarded for their service of providing security and trust in the Network (the exact amount is yet to be determined and announced). A required stake to run an Oracle can also be achieved via delegated staking of other token holders. Since operating Oracles incurs costs, Oracle operators will be able to charge a fee to those delegating the stake to offset for their own operating costs. Oracle operators can decide how much commission to charge on the staking rewards earned on the delegated stake (i.e., 10% commission of staking rewards).
Delegating stake to an Oracle
Those who do not have a sufficient amount of $ATTR staked, or do not want to operate an Oracle, will be able to delegate their stake to a running Oracle. By delegating your stake, you are still earning rewards, but they will be reduced by the commission rate charged by the Oracle operator. The commission rate is visible to everyone and is not subject to change, even for the existing delegated stake(s).
As a reward for the service of providing security and trust in the network, the stakers receive the budgeted staking rewards in addition to the part of the protocol fees coming from the referral farms. As follows:
- The staking budget in $ATTR has been set at 10% of the total tokens supply of $ATTR tokens (100M $ATTR), which will be distributed over the period of 30 months (starting with January 2022). Additionally, rewards as part of the Protocol Fee will be distributed to the stakers.
- Part of the rewards coming from Protocol Fees (⅗ from 5% Protocol Fee), would be collected from Referral Farm Rewards (i.e. $ETH or other crypto chosen as a reward token by the those who create a referral farm)
Eventually, it is expected that the network will be sustainable on the basis of protocol fees. The following is the anticipated staking rewards schedule:
- Rewards during Pre-staking period (started at the end of December 2021): Staking rewards in $ATTR (10M $ATTR)
- Rewards during Staking period (anticipated in the first 2 years): Staking rewards in $ATTR (exact amount TBA) + 3% fee from Referral Farms (⅗ from 5% Protocol Fee)
- Rewards during Staking period (after 2 years): 3% fee from Referral Farms (⅗ from 5% Protocol Fee)
Oracle Staking will happen once the Oracle Network becomes public. Until then, the distribution of rewards as described in the pre-staking period will apply.
Staking rewards from the staking budget and part of the protocol fees are distributed to operating Oracles in proportion to their amount of stake. That means that Oracles earn rewards based on their share of the total amount of tokens staked.
oracle daily rewards = (oracle stake / total stake) x daily staking rewards
Before the rewards are distributed to the Oracles, the amount of tokens earned via delegated stake is distributed to stake delegators (less the commission set by the Oracle operator).
An Oracle A has 10m $ATTR staked, including 3m $ATTR of delegated stake. There is a total of 100m $ATTR staking within the network of Oracles, which means that Oracle A is entitled to 10% of the daily staking rewards (3% of delegated stake). The Oracle operator charges 10% commission on the rewards earned by the delegated stake.
Part of the protocol fees collected that day that is dedicated to staking is 10 $ETH and the staking budget in $ATTR daily rewards amounts to 100,000 $ATTR. The rewards are distributed to all stakers based on their share in the total amount of stake.
Oracle daily gross rewards
= (10% x 10 ETH) + (10% x 100,000 ATTR)
= 1 ETH + 10,000 ATTR
= (90% x (3% x 10 ETH)) + (90% x (3% x 100,000 ATTR))
= 0.27 ETH + 2,700 ATTR
Oracle daily net rewards
= (Oracle daily gross rewards) - (Delegator’s rewards)
= 0.73 ETH + 7,300 ATTR
Referral farming is designed to provide a strong incentive for successful referrals of web3 tokens across ecosystems, while at the same time generating value to the Attrace Protocol and its community.
As the general rewards mechanism is explained earlier, this section focuses on the role of ATTR tokenomics in referral farming. ATTR plays a key role in two areas:
Envisioned as the engine of sustainable protocol growth, referral farms will drive value to Attrace community through protocol fees collected from sponsored referral farms. The protocol fee is currently set to 5%, but will be subject to a future governance decision. This means that 5% of the protocol referral farming rewards (protocol TVL) will be distributed to stakers and Attrace users.
While the referral farming rewards can be in various tokens (i.e., erc2), the tokens collected via protocol fees will be converted into ATTR before being distributed to the staker and users. The protocol fees are distributed as follows:
- ⅗ of the Protocol Fee or 3% of Referral Farm Rewards will go to stakers who run Attrace Oracles
- ⅖ of the Protocol Fees or 2% of Referral Farm Rewards will be distributed as a reward for those who join Attrace Referral Farm
Attrace Referral Farm (protocol native referral farm)
The intention of Attrace Referral Farm is to incentivise and reward early adoption and usage of the protocol, as well as grow the Attrace community. Further, it aims to provide a sustainable long term incentive for future protocol usage.
To start, those who join Attrace Referral Farm will earn Rewards as per the ATTR token distribution above plus ⅖ of the Protocol Fees collected from the Sponsored Referral Farms. The intention of rewards in $ATTR is to kickstart protocol usage, with the expectation that Protocol Fees will provide a sufficient incentive for future usage.
=> Attrace Referral Farm Rewards = $ATTR Referral Farm Rewards + ⅖ Protocol Fee (2% of referral farm rewards)
- Rewards in $ATTR will account for 10M $ATTR (10% of the total token supply) which will be distributed to the users over the period over 30 months (the exact release schedule to be announced)
- ⅖ of Protocol Fees collected from the sponsored referral farms in various tokens will be converted to $ATTR and transferred to the reward pool
Governance is integral to the protocol, which ultimately will become a DAO (Decentralized Autonomous Organization). The road to a DAO will not be developed immediately, as it also requires decentralization and a public network of oracles to be in place. The governance will be rolled out incrementally and will be announced in future.
Here are some of the potential community roles that are envisaged for the future DAO:
- Community as Attrace Referral Farm treasury custodian
- Decisions on tokens which can join Attrace Referral Farm
- Decisions on the incentives within referral farms
- Decisions on the value of the protocol fees and the split between oracles and referral farms budget
- Decisions on the future product features to be developed
Roles and Actors
|Role||Actor||Description||Value Proposition||Token Role|
|Builders||Attrace Team||Developing referral protocol (smart contracts, oracles, tokenomics) & dapp||Deliver trustless Referral protocol||Incentivised with ATTR token allocation|
|Promoters (large crypto or NFT websites)||Utilizing SDK to integrate with referral protocol (provide cashback offers to their users or visitors)||Monetise traffic they send to Tokens, Dapps, DEXs or Marketplaces & increase user engagement||Earn sponsored tokens & earn ATTR tokens|
|Protocol, Dapp, marketplaces or DEXs||Utilizing SDK to integrate with referral protocol (bring referral feature to their users)||Increase the number of users/volume via referrals & increase the existing user engagement||Provide incentive in their native tokens including 5% worth of protocol fee in ATTR|
|Promoters||Crypto user, influencer or website||A user, influencer or website which promotes a token to their friends, followers or visitors||Earn Referral Farm Rewards and become Attrace stakeholder||Earn sponsored tokens from sponsored referral farms & earn ATTR tokens from Attrace Referral farms|
|Projects||Attrace (Attrace Referral Farm)||Provides an incentive to promote a token and drive traffic towards their Protocol, Dapp, marketplaces or DEXs||Increase the number of users or volume via referrals||100m ATTR over 2.5 years (10% of total token allocation)|
|Protocol, Dapp, marketplaces or DEXs (Sponsored Referral Farms)||Provide incentive in their native tokens including|
|Participants||Buyer or Customer||Participant who bought tokens with attrace Promoter's link||Discover new projects, earn rewards and become Attrace stakeholder||Earn sponsored tokens from sponsored referral farms & earn ATTR tokens from Attrace Referral farms|