Use cases

Blockchain Governance

Use Case: In a blockchain network with decentralized governance, users can signal their support or opposition to proposed protocol upgrades, changes, or amendments.

Comprehensive Scenario: Users stake tokens to signal their preference for a proposed protocol upgrade. Based on the collective signals, the network's governance mechanism determines whether the proposal is accepted or rejected. Users who signaled correctly receive rewards in proportion to their stake.

Network Security

Use Case: In a proof-of-stake blockchain network, users can signal their willingness to participate in consensus mechanisms, such as block validation or network validation, to enhance network security.

Comprehensive Scenario: Users stake tokens to signal their intent to participate in block validation. By actively contributing to the network's security, users earn rewards in the form of additional tokens or transaction fees. The network's consensus mechanism adjusts the reward distribution based on the overall participation and contribution of users.

Governance in Decentralized Autonomous Organizations (DAOs)

Use Case: In a DAO, members can signal their preferences on various proposals, including funding allocations, project directions, and strategic decisions.

Comprehensive Scenario: DAO members stake tokens to signal their support or opposition to proposed proposals. The DAO's governance mechanism calculates the collective signals and determines the outcome of each proposal. Members who signaled correctly receive rewards proportional to their stake, incentivizing active participation and alignment with the DAO's objectives.

Protocol Parameter Adjustments

Use Case: In a blockchain network, users can signal their preferences for adjusting protocol parameters, such as block size, block time, or transaction fees, to optimize network performance and scalability.

Comprehensive Scenario: Users stake tokens to signal their desired adjustments to protocol parameters. Based on the collective signals, the network's governance mechanism adjusts the parameters accordingly. Users who accurately predicted the outcome receive rewards, while those who signaled incorrectly may incur penalties or lose their stakes.

Consensus Rule Changes

Use Case: In a blockchain network, users can signal their support or opposition to proposed changes in consensus rules, such as modifications to the consensus algorithm or validation criteria.

Comprehensive Scenario: Users stake tokens to signal their position on proposed consensus rule changes. The network's governance mechanism evaluates the signals and determines whether the changes are accepted or rejected. Users who signaled correctly receive rewards, while those who opposed the majority decision may lose their stakes or face penalties.