Understanding the ROSE Token
In this second lesson, we delve into the ROSE token, the lifeblood of the Oasis Network. Understanding the ROSE token is crucial for grasping the network's operational dynamics and its broader economic ecosystem. This lesson will explore the token's purpose, utility, tokenomics, and distribution, providing a comprehensive overview of its role within the Oasis Network.
Understanding ROSE
Purpose and Utility
The ROSE token is central to the functionality of the Oasis Network, serving several key purposes:
- Transaction Fees: ROSE is used to pay for transactions on the network, ensuring the smooth operation and processing of operations on the blockchain.
- Staking and Delegation: Critical to the network’s Proof of Stake (PoS) consensus mechanism, ROSE tokens are staked by validators and delegators, contributing to the security and integrity of the network.
- Governance: ROSE holders can participate in the governance of the network, influencing decisions regarding updates and proposals that shape the future of the Oasis ecosystem.
Tokenomics and Distribution
The ROSE token features a capped supply to maintain scarcity and value over time. The total supply is fixed at 10 billion tokens, with an initial circulating supply of approximately 1.5 billion tokens at network launch. The token distribution is meticulously planned to support the network’s long-term sustainability and growth:
- Staking Rewards: Approximately 2.3 billion ROSE tokens are allocated for staking rewards, distributed over time to stakers and delegators as an incentive for network participation.
- Backers and Core Contributors: A significant portion of the tokens is allocated to backers who supported the project early on, and to core contributors, acknowledging their pivotal role in the network’s development.
- Community and Ecosystem: Tokens are also reserved for fostering the community and ecosystem, including developer grants and community incentives, ensuring a vibrant and active network.
The distribution strategy reflects the Oasis Network’s commitment to a decentralized and community-driven approach, with a focus on long-term network security, development, and community engagement.
For detailed information on ROSE token metrics and distribution, you can visit the Oasis Network documentation.
The Investors and Stakeholders
Key Partners and Investors
The Oasis Network garnered substantial backing from a range of high-profile investment firms, showcasing the widespread confidence in its potential. Between 2018 and 2020, Oasis raised over $45 million from backers, including renowned entities like a16z, Accel, Binance Labs, and Polychain Capital. This strong financial support from leading venture capital firms underscores the network’s promising outlook in the blockchain arena.
Community Involvement
Community involvement is fundamental to the Oasis Network, which is reflected in its open, permissionless, and inclusive approach. The network emphasizes minimizing entry barriers for validators to participate in the consensus committee, aiming for broad and meaningful engagement. With 120 validators based on stake weight and a minimum stake of 100 tokens, the network encourages active participation. Community members who stake their tokens play a vital role in the network’s security and governance, with the staking rewards system designed to incentivize their contribution.
Staking Incentives
The Oasis Network’s staking model is crafted to balance accessibility and security, offering a stake-weighted voting power mechanism and a 14-day unbonding period to protect the network from malicious actions. The staking rewards range from 2.0% to 20.0%, depending on various factors including the length of time tokens are staked.
The Oasis Network has crafted its staking incentives to reflect its vision of an accessible, secure, and community-driven platform. Here’s an expanded summary:
- Validators: The network supports a robust set of validators, currently capped at 120, who are selected based on the weight of their stake within the network.
- Minimum Stake: To become a validator, an entity is required to stake a minimum of 100 ROSE tokens.
- Consensus Participation: Each entity is allowed to have one node in the consensus committee at any given time to ensure a wide distribution of governance.
- Reward System: Validators can earn between 2% to 20% in staking rewards, encouraging long-term commitment. Eligibility for these rewards requires signing at least 75% of blocks in each epoch.
- Slashing Policy: To maintain network integrity, the Oasis Network will slash a minimum of 100 tokens for double-signing offenses at Mainnet launch, with the node being temporarily frozen to prevent excessive penalties.
- Unbonding Period: There is an approximately two-week unbonding period during which staked tokens do not earn rewards and remain at risk for penalties in the event of double-signing.
- Voting Power: Voting rights in the consensus mechanism are stake-weighted, ensuring that decisions are made by a majority of the staked tokens, requiring more than two-thirds agreement for block approval.
Understanding the ROSE Token
In this second lesson, we delve into the ROSE token, the lifeblood of the Oasis Network. Understanding the ROSE token is crucial for grasping the network's operational dynamics and its broader economic ecosystem. This lesson will explore the token's purpose, utility, tokenomics, and distribution, providing a comprehensive overview of its role within the Oasis Network.
Understanding ROSE
Purpose and Utility
The ROSE token is central to the functionality of the Oasis Network, serving several key purposes:
- Transaction Fees: ROSE is used to pay for transactions on the network, ensuring the smooth operation and processing of operations on the blockchain.
- Staking and Delegation: Critical to the network’s Proof of Stake (PoS) consensus mechanism, ROSE tokens are staked by validators and delegators, contributing to the security and integrity of the network.
- Governance: ROSE holders can participate in the governance of the network, influencing decisions regarding updates and proposals that shape the future of the Oasis ecosystem.
Tokenomics and Distribution
The ROSE token features a capped supply to maintain scarcity and value over time. The total supply is fixed at 10 billion tokens, with an initial circulating supply of approximately 1.5 billion tokens at network launch. The token distribution is meticulously planned to support the network’s long-term sustainability and growth:
- Staking Rewards: Approximately 2.3 billion ROSE tokens are allocated for staking rewards, distributed over time to stakers and delegators as an incentive for network participation.
- Backers and Core Contributors: A significant portion of the tokens is allocated to backers who supported the project early on, and to core contributors, acknowledging their pivotal role in the network’s development.
- Community and Ecosystem: Tokens are also reserved for fostering the community and ecosystem, including developer grants and community incentives, ensuring a vibrant and active network.
The distribution strategy reflects the Oasis Network’s commitment to a decentralized and community-driven approach, with a focus on long-term network security, development, and community engagement.
For detailed information on ROSE token metrics and distribution, you can visit the Oasis Network documentation.
The Investors and Stakeholders
Key Partners and Investors
The Oasis Network garnered substantial backing from a range of high-profile investment firms, showcasing the widespread confidence in its potential. Between 2018 and 2020, Oasis raised over $45 million from backers, including renowned entities like a16z, Accel, Binance Labs, and Polychain Capital. This strong financial support from leading venture capital firms underscores the network’s promising outlook in the blockchain arena.
Community Involvement
Community involvement is fundamental to the Oasis Network, which is reflected in its open, permissionless, and inclusive approach. The network emphasizes minimizing entry barriers for validators to participate in the consensus committee, aiming for broad and meaningful engagement. With 120 validators based on stake weight and a minimum stake of 100 tokens, the network encourages active participation. Community members who stake their tokens play a vital role in the network’s security and governance, with the staking rewards system designed to incentivize their contribution.
Staking Incentives
The Oasis Network’s staking model is crafted to balance accessibility and security, offering a stake-weighted voting power mechanism and a 14-day unbonding period to protect the network from malicious actions. The staking rewards range from 2.0% to 20.0%, depending on various factors including the length of time tokens are staked.
The Oasis Network has crafted its staking incentives to reflect its vision of an accessible, secure, and community-driven platform. Here’s an expanded summary:
- Validators: The network supports a robust set of validators, currently capped at 120, who are selected based on the weight of their stake within the network.
- Minimum Stake: To become a validator, an entity is required to stake a minimum of 100 ROSE tokens.
- Consensus Participation: Each entity is allowed to have one node in the consensus committee at any given time to ensure a wide distribution of governance.
- Reward System: Validators can earn between 2% to 20% in staking rewards, encouraging long-term commitment. Eligibility for these rewards requires signing at least 75% of blocks in each epoch.
- Slashing Policy: To maintain network integrity, the Oasis Network will slash a minimum of 100 tokens for double-signing offenses at Mainnet launch, with the node being temporarily frozen to prevent excessive penalties.
- Unbonding Period: There is an approximately two-week unbonding period during which staked tokens do not earn rewards and remain at risk for penalties in the event of double-signing.
- Voting Power: Voting rights in the consensus mechanism are stake-weighted, ensuring that decisions are made by a majority of the staked tokens, requiring more than two-thirds agreement for block approval.