POA Forum

Proposal to change the receiver of sustainability emission from the EmissionFunds contract to the POA Foundation multisig wallet

Dear POA Validators,
@poa-validators

The POA Foundation proposes to change the receiver of sustainability emission from the EmissionFunds contract to the POA Foundation multisig wallet. This change does not require a hard fork or any protocol upgrade and can be implemented by replacing the BlockReward contract implementation through a ballot.

If this proposed initiative passes, funding will be used to implement cross-chain staking for the POA token. The POA token utility will not change on the POA network, but there will be an additional opportunity to stake the POA token (along with other tokens using a Multi Collateral Staking model) on other participating chains.

If it does not pass (or is not initiated), the network will continue to function in its current state and POA token will not be used for staking in Multi Collateral Staking.

Rationale

The sustainability emission distribution was first introduced in the “Oracles Network” whitepaper.

Therefore, 2.5% of the network supply will be generated as a reward for validators to secure the network. And 2.5% of total supply will be distributed to support sustainability. Validators will be able to propose areas of spending:

  • burn coins
  • hold coins
  • spend on R&D Foundation

Sustainability emission will be governed by decentralized apps.

The EmissionFunds logic and contract were later implemented during the first year of the network. POA validators have used most EmissionFunds related governance features since activation in November 2018.

The POA team is committed to supporting the POA protocol and the essential infrastructure including Bootnodes, RPC endpoints, BlockScout blockchain explorer and the POA Bridge. The foundation also sponsors grants related to network adoption such as the POA Games Fund.

Switching from EmissionFund distributions to POA foundation wallet distributions will provide the POA Foundation team with confidence and financial support for future development efforts going forward.

In addition, if validators agree to switch the emission destination, the POA Foundation team will implement a new feature with these funds: the ability to stake POA tokens on other EVM chains. This feature will be developed using a new algorithm known as Multi Collateral Staking. The details of this model are still under consideration and will be further developed based on the outcome of the proposal.

If the vote to modify the emission fund passes, POA staking functionality will first be introduced on the xDai chain. Here, a composite token, generated from POA tokens and a second staking token, will be used by validators and delegators to secure the xDai chain. Rewards (in stable xDai tokens) will be produced and distributed to stakeholders in the process.

This will provide a new cross-chain use case for the POA token, providing staking features without changing the emission schedule or rate.

Ballot Instructions

  1. Get the current BlockReward contract source code from https://blockscout.com/poa/core/address/0xeca443e8e1ab29971a45a9c57a6a9875701698a5/contracts

  2. Change the address of the target emission funds contract on the line 157 , i.e. change the line
    address public constant emissionFunds = 0x548806F2215F44571431292F2314480c3F519044;
    to
    address public constant emissionFunds = new_address; // write here the new address

  3. Compile (using Solidity 0.4.24) and deploy this new BlockReward contract to the POA Core Network.

  4. Verify its source code in Blockscout and make sure the source code line 157 contains the new_address .

  5. Ensure your MetaMask network is POA Core and your current address is Voting Key and then open https://voting.poa.network/

  6. Click the New Ballot button and choose Modify Proxy Contract Ballot .

  7. In Proposed Address insert the address from step 3 above. In Contract Type select RewardByBlock . Fill in the ballot’s description and set the desired ballot’s end time. Click Add Ballot and sign the transaction.

  8. The ballot should reach at least N/2+1 votes to take effect after finalization ( N is the current number of validators).

Note: If needed, the POA team can assist with steps 1-4.

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