Orcfax staking: rewarding good behaviour
R&D into Orxfax Network staking funded through the Catalyst F12 campaign.
This page will provide documentation pertaining to the execution of the proposal and links to each of the deliverables required for their respective Milestones. The full Catalyst proposal can be found here.
Problem statement
Game theory remains under-utilized within Cardano. As we progress to full decentralization, Cardano dApps need more tools and protocols to incentivize desired behaviour while mitigating bad actors.
Proposed solution
Orcfax will research staking mechanisms for Web3 networks, design an architecture stack of relevant tools and protocols, and develop a proof of concept for testing in our validator network.
Milestone 1
Orcfax produced a research report which evaluated current Web3 staking protocols and tools available to Cardano projects With the hope that the exercise would inform proof-of-concept development in subsequent milestones.
Orcfax conducted research over a sample set of staking protocols with a limited initial understanding of the staking protocol landscape with the hope that the exercise would inform future development by Orcfax.
This research and its findings are made available in A Comparative Analysis of Staking Protocols used in Blockchain Networks (Wallis & Koch, 2024)
Milestone 2
After the successful completion of milestone 1 and its research objectives, work on the staking PoC can begin; however, a number of considerations must be be assessed which are quite impactful on design. Some of these consideration are economical.
As Orcfax prepares to for milestone 3 which will conclude with the completion of a staking PoC, we have documented the economic considerations and their relationship to our other proposal (i.e. implementing a consensus mechanism); our findings are made available here along with a use case description, and diagrams where appropriate.
Milestone 3
Orcfax will produce software code that demonstrates how a validator node operator can:
- deposit testFACT stake
- receive testFACT rewards
- have testFACT slashed for non-conformant behaviour