#1·Litentry Token Burning Event #2

Hi Community !!!!

Based on Litenry Identity Staking Inflation Model, 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

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 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