Greetings, Community!

We're excited to share an update regarding Litentry's Identity Staking Inflation Model. In line with this model, the Litentry team is committed to burning a substantial amount of 377,800 LIT during the third quarter.

Here are the key details:

- **Amount to be Burned**: 377,800 LIT
- **Parachain Account**: 48W1VwWpMk9ZpA7HMRA15wyWygyGaLbA5VoJeczh67g7tdn9

For those who like visual confirmation, here's a **Balance Wallet Proof**: [View Here](https://imgur.com/a/LtEW2lR).

Now, let's dive into the burning process:

1. **Transfer from Ethereum to Litentry Parachain**: To initiate the burn, 377,800 LIT will be transferred from the Ethereum account controlled by the Litentry Foundation to the Litentry Parachain. You can review the Ethereum transaction here: [Etherscan Transaction](https://etherscan.io/tx/0xf7de93d3eabb5bfdd8a2e473cb34c7d4038bea217c73f0f9b766e407f442f3af).

2. **Transaction on Parachain Side**: Following this, you can verify the transaction on the Litentry Parachain side here: [Parachain Transaction](https://litentry.statescan.io/#/extrinsics/3077697-2).

Additionally, a referendum will soon be conducted to zero out the balance of the token-holding parachain account. This marks our third burn event out of a total of 8 planned.

We appreciate your continued support



Litentry, a blockchain-based identity verification platform, has announced that they will be burning 377,800 LIT tokens during the third quarter of the year. This is in line with their Identity Staking Inflation Model.

The tokens will be transferred from the Ethereum account controlled by the Litentry Foundation to the Litentry Parachain.

A referendum will soon be conducted to zero out the balance of the token-holding parachain account.

This is the third burn event out of a total of 8 planned.

Litentry appreciates the continued support of its community.

Litentry Token Burn Event #3

This proposal addresses the maintenance costs on Subsquare and Statescan platforms for Litentry and Litmus networks during Q3-Q4 2023. Subsquare serves as a governance platform, while Statescan operates as a dedicated blockchain explorer for substrate-based blockchains. Our aim is to secure the necessary funds to ensure smooth operations and sustained functionality of our governance services in these essential platforms during the specified period.

Beneficiary: 0x61197065B4Fb6a7C685588fB09ABd27CAe27fBC0
Date: 2023-08-07
Requested Allocation: $7,400 equivalent LIT token (11,029 LIT by the EMA7 price on 2023-08-7)

## Work scope
1. Do daily maintenance and DevOps work to make sure the Litentry and litmus subsquare/statescan deployment well running
2. Develop and deploy subsquare common features, parts of them:
  * Governance data statistics
  * Calendar feature
  * Address vote history
  * Subsquare new design
  * Preimages page
  
## Request
|Item|detail|Cost|
|----|------|-----|
|Litentry subsquare maintenance|2023 Q3 and Q4|$4,200
|Litmus subsquare maintenance|2023 Q3 and Q4|$3,000
|Litentry statescan maintenance|2023 Q3 and Q4|$200
|Litmus statescan maitenance|2023 Q3 and Q4|$0
|Total|		|$7,400

Litentry and Litmus networks need money to maintain their governance platforms, Subsquare and Statescan, during Q3-Q4 2023. Subsquare is a governance platform, while Statescan is a dedicated blockchain explorer for substrate-based blockchains. They need $7,400 to ensure smooth operations and sustained functionality of their governance services in these essential platforms during the specified period.

The work scope includes daily maintenance and DevOps work to make sure the Litentry and litmus subsquare/statescan deployment well running. They also plan to develop and deploy subsquare common features such as governance data statistics, calendar feature, address vote history, subsquare new design, and preimages page.

The requested allocation is $7,400 equivalent LIT token (11,029 LIT by the EMA7 price on 2023-08-7).

Litentry subsquare maintenance costs $4,200, Litmus subsquare maintenance costs $3,000, Litentry statescan maintenance costs $200, and Litmus statescan maintenance costs $0.

This proposal aims to secure the necessary funds to ensure the smooth functioning of Litentry and Litmus networks' governance platforms, Subsquare and Statescan, during Q3-Q4 2023.

Maintenance Cost for Subsquare/Statescan in Q3-Q4, 2023 - Motion #4

Hi Litentry Community,

I hope this message finds you well. I wanted to bring your attention to an important matter regarding the asset rescue of **720.70 LIT**. After thorough discussions on https://litentry.subsquare.io/post/2 and Discord Support Ticket, our community team has conducted a verification process to confirm the ownership of the Ethereum and Substrate accounts involved. Based on our findings, we strongly believe in proposing a motion to both the council and the wider Litentry community to support the asset rescue effort.

To provide transparency and evidence of ownership, we would like to share the following information:

Transfer Token Bridge Txn: https://etherscan.io/tx/0x149f2c0d78332f0d20d46c0d745fad3167394e013613901ee736846c388135f2

Proof of ownership of the Ethereum wallet: To verify the ownership of the Ethereum wallet, please refer to the following link - Etherscan Signature Verification: https://etherscan.io/verifySig/19250

Proof of ownership of the LIT wallet: We have provided a screenshot of the input data from the Ethereum transaction as proof of ownership. You can view it here: https://postimg.cc/c65Jb3GK

For reference, you can find the locked LIT address at the following link: https://litentry.statescan.io/#/accounts/493LBHLmoAuMEoncNbc3DaRxTsDAyWDdKZfZxuut9GrTCHuU

The address where the rescued assets will be sent is available here https://litentry.statescan.io/#/accounts/49PpvNtBBJSa8d9wn6oFsBgWbx83JS1m7CDGoA4z2VtdjVcT

We urge the entire community to come together and support this motion. By doing so, we can help the user in question retrieve their LIT. Your support and participation are crucial to the success of this endeavor.

Please feel free to ask any questions or provide your feedback on this matter. Let's stand united as a community and make a positive impact together.

Thank you for your attention and support.

Remy

Litentry Community Asset Rescue Effort:

- Litentry Community is trying to help a user retrieve their LIT assets.
- They have verified the ownership of the Ethereum and Substrate accounts involved.
- They are proposing a motion to the council and the wider Litentry community to support the asset rescue effort.
- They have provided proof of ownership of the Ethereum and LIT wallets.
- The community's support and participation are crucial to the success of this endeavor.

proposalHash

votingPeriod

delay

Support Token Rescue for Raenius#7875 due to Ledger Incompatibility

Hi Community !!!!

Based on [Litenry Identity Staking  Inflation Model](https://litentry.subsquare.io/post/3), the Litentry team will burn the equivalent amount of new issuance 377,800 LIT quarterly for the next two years instead of [568,750 LIT as previous motion](https://litentry.subsquare.io/council/motion/0)

The amount of LIT that should be burnt each quarter is：377,800 LIT
The Parachain account that holds the to-be-burnt tokens is: 48W1VwWpMk9ZpA7HMRA15wyWygyGaLbA5VoJeczh67g7tdn9

https://i.postimg.cc/1t2Qngrc/Screenshot-2023-05-31-at-18-33-44.png

**The burning procedure is as follows:**

377,800 LIT is transferred from the Ethereum account that is controlled by the Litentry Foundation to Litentry Parachain via the token bridge:
tx on eth side: https://etherscan.io/tx/0x24faf711014aebd4be91711ef8643f85037b0850d60bda762e554cfeb3380487
tx on parachain side: https://litentry.statescan.io/#/extrinsics/2434361-2
A referendum will be voted on to forcibly set the balance of the token holding parachain account to 0.
We have 8 burning events in total and this is the second burn event.



## Roadmap: Unleashing the Power of Identity Staking

We are delighted to share our roadmap for the introduction and integration of Identity Staking into Litentry's ecosystem. It has been a while since the concept of identity staking first been raised in the Litentry Light Paper. Based on the recent research and the prototyping of the mechanism of identity staking, we see it is an innovative feature that aims to empower our community and create a stronger, more connected Litentry ecosystem. As the [existing inflation mode](https://litmus.subsquare.io/post/1) has running for 6 months, we would like to bring the topic into discussion and prepare it from now on with a new inflation model. 

---

Identity staking is a powerful tool that can increase the richness and reputation of decentralized identity. It motivates users to become more actively involved in managing and leveraging their identity, which is critical for unlocking the full potential of pseudonymous economies. By investing in their identity, users are acknowledging its importance and taking control of their online presence. 

1. Identity staking promotes active involvement and control in managing digital identity.
2. Staking enhances credibility and earns rewards for strengthening one's aggregated identity.
3. It serves as proof of humanity, combating bots and Sybil attacks.
4. Identity staking fosters an inclusive ecosystem with diverse contributions.
5. It increases token utility and supports long-term ecosystem growth.

### An incentive to shift the mindset

To fully grasp the potential of pseudonymous economies and unlock the benefits of a contextual digital identity, native web3 users must shift their mindset. They need to understand that their web2 identity was managed passively without much control or agency from the owner. Once they realize the importance of becoming a more active participant in managing their identity data, they can begin to reap the rewards of identity staking.

**Identity staking encourages users to take an active role in managing, aggregating, and leveraging their identity data.** Novice users can earn a higher return on their staked assets for any actions that increase the richness or complexity of their digital identity. For example, by proving ownership over additional accounts or contributing to communities with on-chain interactions, users can increase their provable credentials and earn rewards for their efforts.

### A stake in your humanity

**Digital identity, Sybil resistance, and proof of humanity are critical to the future of the internet**. It is more important than ever to differentiate real humans from bots, especially with the advent of AI-generated content and the proliferation of bots in Web3. Identity staking holds true to the original concept of 'staking,' where users' stake can get slashed when performing malicious behavior or being identified as a bot by the network. This economic deterrent, combined with the incentive to aggregate a decentralized identity from a multitude of accounts, points to one of the remaining ways to differentiate real humans from bots. It also combats the issue of Sybil attacks by requiring users to stake their tokens, making it much more difficult for attackers to create fake identities. This helps to ensure that the network is only populated by legitimate users, which can help to increase its overall security and reliability.

### Being rewarded for being ‘you’

Identity staking also creates a more inclusive ecosystem by incentivizing users to become more active in managing their identities and encouraging a wider range of people to participate in the network. This can help to increase the overall value of the network, as more people bring unique perspectives and skills to the table. One must also remind themself that the IdentityHub is a two-sided marketplace where identity owners and consumers can exchange the value of identity. The identity staking incentive can act as a market maker by attracting hard-to-find identities to the necessary opportunities.

Finally, identity staking can increase the overall utility of the Litentry token by providing users with additional incentives to hold and stake their tokens. This can help to ensure that the token remains valuable over the long term and ensure the continued success and growth of the Litentry ecosystem.

In conclusion, identity staking is a powerful concept that has the potential to revolutionize the way we think about decentralized identity. By incentivizing users to become more actively involved in managing and leveraging their identity data, we can unlock the full potential of pseudonymous economies and create a more secure, trustworthy, and transparent internet.

Thank You everyone to support this proposal

Litentry is a blockchain project that has come up with a new plan to burn 377,800 LIT tokens every quarter for the next two years. This is instead of the previous plan to burn 568,750 LIT tokens. The burning process involves transferring the tokens from the Ethereum account to the Litentry Parachain via the token bridge.

Identity staking is a new feature that Litentry is introducing to its ecosystem. It is a powerful tool that motivates users to become more actively involved in managing and leveraging their digital identity. It increases credibility, serves as proof of humanity, and fosters an inclusive ecosystem with diverse contributions.

Identity staking encourages users to take an active role in managing, aggregating, and leveraging their identity data. Novice users can earn a higher return on their staked assets for any actions that increase the richness or complexity of their digital identity.

Digital identity, Sybil resistance, and proof of humanity are critical to the future of the internet. Identity staking helps to differentiate real humans from bots and combats the issue of Sybil attacks by requiring users to stake their tokens.

Identity staking creates a more inclusive ecosystem by incentivizing users to become more active in managing their identities and encouraging a wider range of people to participate in the network. It can increase the overall utility of the Litentry token by providing users with additional incentives to hold and stake their tokens.

In conclusion, Litentry's new plan to burn tokens and introduce identity staking is a positive step towards creating a more secure, trustworthy, and transparent internet.

Litentry Token Burning Event #2

Based on [Litenry parachain inflation and collator staking](https://litmus.subsquare.io/democracy/external/1211250_0xabcfa3b1a5841a8841b72bf44cda89012468f7679e01b50652ce345a2a8692a4), Litentry team will continue to burn the equivalent amount of new issuance LITs from the inflation model quarterly for the next two years after collator staking is deployed.

The amount of LIT that should be burnt each quarter is：**568,750** LIT
The parachain account that holds the to-be-burnt tokens is: [48W1VwWpMk9ZpA7HMRA15wyWygyGaLbA5VoJeczh67g7tdn9](https://litentry.statescan.io/#/accounts/48W1VwWpMk9ZpA7HMRA15wyWygyGaLbA5VoJeczh67g7tdn9)

The burning procedure is as follows:
- 568,750 LIT is transferred from the [ethereum account](0x361C349127Dc80c3DAa03590aAA3f530F88ED997) that is controlled by the Litentry foundation to Litentry parachain via the token bridge:
  - tx on eth side: [750 LIT](https://etherscan.io/tx/0x932e56350a85cdb879d233961f25c6c68dd7cb0c4fc075580fb37f8424f8fb82) + [568,000 LIT](https://etherscan.io/tx/0x2d1de6fd515c1e50d4d0e2b5ac5068a5dcf387be9de4c4d2c447c20e0f6b5f10)
  - tx on parachain side: [750 LIT](https://litentry.statescan.io/#/extrinsics/1732889-2) + [568,000 LIT](https://litentry.statescan.io/#/extrinsics/1732913-2)
- A referendum will be voted on to forcibly set the balance of token holding parachain account to 0.

We have 8 burning events in total and this is the first one.

Litentry team will burn a certain amount of LIT tokens every quarter for the next two years after collator staking is deployed. The amount of LIT that will be burnt each quarter is 568,750 LIT. The burning procedure involves transferring the LIT tokens from the Ethereum account to the Litentry parachain via the token bridge. A referendum will be voted on to forcibly set the balance of token holding parachain account to 0. This is the first of 8 burning events in total.

Democracy External Proposals