The INK Staking Engine

The core economic engine driving DAO governance.

Ink Finance mainly implements governance rights represented by the staked positions of DAO’s meta token, based on the principle of “having skin in the game”. Not only Managers are required to stake a minimum amount of the DAO tokens, public votes are also expressed by the staked tokens as well. Even though sub DAOs of a large ecosystem can issue their own Badges to be used in their governance process, it is mandatory that the use of the Badges must be in combination with the DAOs’ meta tokens.

The requirement of stake-to-vote not only is an effective mechanism guarding against Sybil attacks, and assigning clear governance utility to the DAO token, it also happens to produce the effect of rewarding participation in the governance process, which typically is more than enough to offset any gas cost spent on voting. There is also a Termed Staking scheme available for the DAO to customize, in order to implement a reward-and-penalty scheme.

When constructing DAO the first time, the DAO creator should have their issued tokens ready on the blockchain. An instance of the INK Staking Engine will be manufactured for this creator, who only needs to submit the emission reward tokens (contained in the creators’ wallets) into the Staking Engine. These tokens are typically part of the allocation as community incentives, but some DAOs do have specially created governance tokens. In the simplest default configuration, that’s all there is to be operational. The INK Economy System provides a no-code interface for the DAO creator to:

• Supply the tokens as staking reward

• Set the emission curve during the emission period

• Set lockup terms with different rewards and governance weights

• Set penalty levels for breaking the lockups