We are requesting your help in launching the first official POA DApp on the POA Network - POA Mania. Help will include app testing and feedback, as well as a request to halve the block reward and emission fund reward to support the application. Please read on for more details; any comments, feedback etc are welcome on this post.
Note that we’ve been working on this app for some time, before the COVID-19 crisis began. We believe this crisis will ultimately bring many more people to blockchain technologies. POA Mania provides a soft landing for people interested in learning about blockchain and crypto, and while it may result in fewer POA for everyone at the start, we believe usage will increase POA value in the long term.
View and try out the current version of POA Mania on Sokol:
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Despite the current extreme challenges in the marketplace, POA Network, as a blockchain and R&D organization, remains strong. We have survived where many projects have failed, and we believe our longevity is due to several factors. These include:
- POA Network fundamentals: Fast block times, interoperability, no down time, stability, known and trusted validators (benefits of a private chain within a public setting), low gas fees etc.
- Developer culture: A team of developers respected in the community who continue to bring tangible improvements to the Ethereum ecosystem (BlockScout, TokenBridge)
- Validator dedication: Validator incentives have become much smaller but validators continue to make network upgrades, pay for infrastructure, and support the chain in what has become largely a voluntary capacity. Validators are the heart and soul of the POA Network chain.
Many applications have successfully deployed to the network. Some have moved on, but others have stayed and thrived (eg Kauri https://www.poa.network/use-cases/content-curation). In addition, new projects continue to discover the advantages of using the POA Network (ie Ethernal.World https://www.poa.network/dapp-spotlights/ethernal.world )
With this in mind, we have been working on the first official POA DApp (not including governance & infrastructure applications) which will be deployed to the POA Network. The DApp is called POA Mania.
POA Mania is a no-loss lottery where any POA holder can stake POA for a chance to receive rewards without risking token loss. The more tokens a user puts into the lottery, the greater their odds of winning a prize. The lottery will work similarly to PoolTogether (the inspiration for this application which currently holds more than 700k worth of DAI in its contract) but will differ in important ways.
PoolTogether rewards come from interest generated by all DAI locked in the lottery contract. This requires large deposits and a substantial amount of time to accumulate a meaningful reward pool (1 week cycle). POA Mania rewards will come from chain emissions. With the proposed model, 16,000+ POA will be distributed to winners daily along with an opportunity to win a jackpot amount.
PoolTogether relies on a centralized authority to determine the winner. POA Mania uses random numbers created on-chain to choose the winners. POA Mania is a fully decentralized application, not subject to any centralized manipulation.
With PoolTogether there is 1 weekly winner. POA Mania offers 3 daily winners (1st, 2nd and 3rd place) for a total of 21 winners per week.
PoolTogether rewards are stable tokens. POA Mania offers volatile token rewards, increasing speculative opportunities.
PoolTogether operates on a defined weekly timeline. POA Mania allows anyone to close a round after a preset minimum amount of time has passed (set to 1 day on POA Network). The Round Closer receives a portion of the pot. This creates a ‘game within a game’ which increases excitement and interaction.
In the current landscape, we think POA Mania can open the doors to new POA users while rewarding current token holders. There is no risk to participate and several winners are selected each day. As people are at home and looking for alternative ways to interact with money and learn about blockchains and crypto, POA Mania will create an opportunity for users to win cryptocurrency without taking on additional risk.
It’s important to note that POA Mania is not a gambling application - participants cannot ever lose any amount of POA. POA value will change (due to market forces) but the amount of POA a participant pledges to the application cannot decrease unless withdrawn by the participant. The prizes are created solely from POA emission funds, and there is no cost to participate or deposit/withdraw funds (other than the cost of performing an on-chain transaction). Participants will have the ability to their funds at any time, including their initial deposit and any winnings they have accumulated.
Block Reward Adjustment
To support the POA Mania application, we propose to adjust the current block reward structure. This will enable reward incentives for POA token holders through a no-loss lottery application. We believe this action, while curtailing the amount of tokens validators receive for validating blocks, will ultimately increase POA token demand and POA token price.
Currently, each sealed block results in 1 POA sent to the block validator and 1 POA sent to the emission fund. We propose to halve the amount of POA that goes to the emission fund to .5 POA, and we are asking validators to match this amount and halve their block reward to .5 POA. In this scenario, the lottery fund will receive 1 POA per block, the emission fund will receive .5 POA per block, and the block validator will receive .5 POA.
|Current per bock||Proposed per block|
|Validator||1 POA||0.5 POA|
|Emission Fund||1 POA||0.5 POA|
|POA Mania Lottery DApp||0 POA||1 POA|
This reward halving will directly benefit POA token holders who participate in POA Mania, which in turn should benefit validators and the emission fund (assuming POA token price responds to an increase in usage and demand). Blockchain incentive halvings are common events which typically result in increased token prices. As you know, POA has lost considerable value in the marketplace, and we are looking for ways to stimulate chain usage with applications that will increase demand for POA. We think POA Mania is this type of application.
We hope you will help us test POA Mania on Sokol, and welcome your feedback and ideas to make it an even stronger application. The success of PoolTogether shows that users are interested in no-loss lottery DApps. If we can make something that is more exciting for users and offers real-world value, we believe it can bring a lot of new users into the POA Network.
We plan to announce and market POA Mania to the larger community, and utilize Telegram and Discord to update users daily with new round announcements and a list of winners. We are very excited about the possibilities of POA Mania and its potential to increase POA token long-term usage and price.
Please let us know any questions or concerns you may have in the comments section. We look forward to the discussion. If you agree with this approach, we will prepare instructions on how to reallocate block rewards.