Dear Litentry Community Members,
We propose the implementation of Identity Staking, a feature that allows secure management of identity data and the ability to stake LIT in order to invest in your identity and reputation for benefits.
It has been a while since the concept of identity staking was first raised in the Litentry Light Paper. Based on recent research and the prototyping of the identity staking mechanism, we see this as an innovative feature that aims to empower our community and create a stronger, more connected Litentry ecosystem. As the existing inflation model has been running for 6 months, we would like to bring the topic into discussion and prepare for a new inflation model going forward.
With the introduction of Identity Staking, terms in the previous inflation model will be changed as follows:
But what is Identity Staking? It's a powerful two-part system designed to revolutionize your interaction with the Litentry network.
Firstly, it allows you to securely incorporate your identity data into Litentry’s TEE sidechain. This feature enables you to manage your data in private and connect with others on your own terms, enriching your networking capabilities within the Litentry ecosystem and the cross-chain future.
In the second part, you can stake extra LIT into the specific identity staking pool as a signal that you are investing in your digital identity and reputation, a way to unlock Litentry’s IDHub premium services such as:
While both staking mechanisms are valuable, we firmly believe that Identity Staking holds the key to fostering widespread adoption of the LIT token and benefiting the entire Litentry community in the long run. In comparison to collator staking, the integration of identity staking as a complementary feature will lead to a more inclusive and interconnected ecosystem.
With the collator staking proposal, the community has expressed the belief in Litentry’s continued success, and also a strong interest in exploring innovative ways to leverage LIT within the Litentry ecosystem. Identity Staking directly addresses these aspirations, fulfills the commitment in the Litentry Light Paper, and serves as the ultimate utility to drive adoption and engagement.
As we move forward, our vision entails merging the collator staking and identity staking to create a seamless and inclusive experience for all.
At Litentry, we remain committed to maintaining a sustainable and balanced inflation model, taking into account the community's concerns. As outlined in our previous article here, we are steadfast in controlling the overall inflation rate at 2.5%. This ensures a healthy ecosystem for our community members to thrive in, while considering the referendum's discussions.
To achieve this goal, we will continue to uphold the current collator inflation rate of 1.5%, as suggested by the referendum. Simultaneously, we will allocate a reserved pool specifically for the identity staking, as proposed in the referendum. This reserved pool will contribute an additional 1% inflation rate for the Litentry ecosystem, as approved in the referendum. By doing so, we strike a delicate balance that preserves the stability of the collator staking while introducing the exciting possibilities of identity staking, aligning with the discussions held during the referendum.
We are delighted to share our roadmap for the introduction and integration of Identity Staking into Litentry's ecosystem:
Let us know your thoughts and opinion by commenting below!
Litentry is proposing a new feature called Identity Staking, which allows secure management of identity data and the ability to invest in your identity and reputation for benefits.
Identity Staking is a two-part system that enables users to manage their data in private and connect with others on their own terms, enriching their networking capabilities within the Litentry ecosystem.
Users can stake extra LIT into the specific identity staking pool as a signal that they are investing in their digital identity and reputation, unlocking Litentry’s IDHub premium services such as early access to exclusive identity benefits and campaigns from partners, experimental scores, credentials, and new features, access to Web3 opportunities that require deeper understanding or experience, and increased staking returns when completing identity benefits or other engagements on the IDHub.
Identity Staking is different from Collator Staking, but both are valuable mechanisms. Identity Staking is believed to be the key to fostering widespread adoption of the LIT token and benefiting the entire Litentry community in the long run.
Litentry is committed to maintaining a sustainable and balanced inflation model, taking into account the community's concerns. To achieve this goal, they will continue to uphold the current collator inflation rate of 1.5%, as suggested by the referendum, and allocate a reserved pool specifically for the identity staking, as proposed in the referendum.
Litentry plans to launch Identity Staking in Q3 2023 and merge it with Collator Staking into a comprehensive and cohesive framework in Q4 2023.