Tgrade Finance — Overview
Intro
In terms of networks tackling common issues arising on topics of governance and community involvement, Tgrade has taken a very specific approach by eliminating some of the classic PoS mechanisms. In order to understand how Tgrade Finance works, we have to break a few things down and go through the motions of exploring the big picture of what the goal truly is behind the rules outlined.
Tgrade was launched in June of 2022 and is currently listed on Osmosis with the ticker TGD.
Company, team & vision
Stichting Ocean Blue is the legal entity owning Tgrade, which is important to mention since one significant part of the network’s mission is countering any upcoming legal hurdles from seemingly inevitable regulatory rules that might be up for talks sooner or later.
Ocean Blue focuses on supporting decentralized platforms and even has a grants program designed to further their vision of development in the area of web3 with a targeted goal of having the projects become beacons for a regulatory-friendly environment.
Their team, led by Martin Worner, has a combined experience in fintech, coding, business development, certified financial prowess, legal counseling, and a plethora of other skills all forming a complex portfolio prepared to get the job done.
Proof of Engagement — No delegators
That’s right. By eliminating Proof of Stake and replacing it with Proof of Engagement (PoE), there are no such things as delegators in this formula.
We have seen this on numerous occasions, a lot of power in the hands of a few giants that are able therefore to decide on important factors within certain networks despite the scrutiny of the community.
In the aspect of providing a fair model which evaluates participation in many aspects of the community, we come across Engagement Rewards being rewarded to all community members willing to participate and follow simple rules.
In PoE, validators combine staking with Engagement Rewards, where the latter is actually the one that matters.
This brings us to another aspect of staking: most stakers don’t actually use their voting power and prefer to leave it all in the hands of validators, making the community even less involved. Indeed, there is also the possibility that delegators don’t choose validators wisely and tend to go for the lowest commission or high visibility brand choices without taking a political or technical choice in the right manner of speaking.
How to receive Engagement Points?
Some ways of receiving EPs are:
‣Blog article about Tgrade/Proof-of-Engagement
‣Video about the project
‣Infographics on Tgrade
‣Translation of documents
‣Writing documentation — Technical
‣Writing documentation — Business
‣Podcast about the project
‣Proposal for project governance
‣Validator operation
‣Community Management
As Tgrade team has mentioned in a medium article:
The voting authority in Proof of Engagement is the sum of Engagement Points and Stake. The intent of the design to include Engagement Points was to incentivize both established and new validators to be engaged with the blockchain beyond running a node.
The Oversight Community
While the idea of providing guidelines on missions for obtaining EPs is absolutely great, it needs to be correctly evaluated. In order to paint a picture of what is actually a worthy submission, Tgrade came up with an Oversight Community
Built as an off-chain infrastructure, it follows through in confirming the identity of individuals engaging on the blockchain and further on uses governance processes in establishing consensus for validating the weight of engagements and how they should be rewarded.
The Oversight Community maintains a connection with the wider community by gathering feedback and exchanging ideas before casting a verdict.
Validators have a choice secondary to PoE
As validators ourselves, we were quite interested in understanding how the mechanism works in order for us to join the network. In addition to participating in the PoE journey, there is also the option of Schuldshein, as Tgrade has been so aptly inspired to follow and apply.
This emulates the ability for validators to receive bilateral loans (not considered securities) for the later purchase of tokens that can be staked in order to provide a return to the lender and motivate the usage of this system within the cycles of the loan. Seeing as how the loan is backed by an actual legal agreement, this will lead to validators being more careful about maintaining a good behavior on-chain, trying to avoid jail or slash events as much as possible, given they are the only ones to support a penalty in case of misbehavior. Validators can continue farming EP (engagement points) to cover the interest of their loans, promoting an overall healthier architecture in the relationship between delegators — validators — community.
All of this is in the interest of having validators engage with the community and the project, rather than simply running a node and relying on infrastructure and technology alone to secure a spot on the list.
Incentivization is wisely correlated with fees spent by the users, arching back into staking and transactions being used on-chain to prioritize properly defined use cases and a well-designed framework.
Closing arguments
Tgrade Finance is heavily focused on the legal aspects and fairness of interaction between parties involved in the blockchain, striving to facilitate a well-rounded solution to aspects that have long been under heavy discourse within several ecosystems in crypto. We find their approach to be quite interesting in the way that they differentiate themselves on the market. While proof of engagement is not pioneered by the network, it’s certainly intelligently outlined and taken care of in Tgrade.
Tgrade links
Tgrade works a lot on providing great insights into the conditions of the current market situation and how it can position itself with the project and its vision.
⚪️ Website
⚪️ Whitepaper
⚪️ Github
⚪️ Medium
⚪️ Telegram
⚪️ Linkedin
⚪️ Twitter
⚪️ Discord
Not financial advice
None of the information provided (whether written or quoted) is intended to be interpreted as financial advice of any kind. BlockHunters does not endorse or recommend any of our readers to invest or trade based on the information presented. We do not guarantee that any of these publications are up-to-date or fully accurate. As such, we cannot be held liable in any situation wherein the contents of our written articles are used for personal investments. We will always recommend that our readers do their own research and take decisions into their own hands.
About BlockHunters
BlockHunters is a non-custodial staking service provider currently supporting the most promising projects in the cryptocurrency ecosystem with active nodes and different model infrastructure key components.
Based on the vision of driving technology forward and helping with security, connectivity solutions, governance insights, and community support, BlockHunters is dedicated to offering competitive and practical prowess.
Where to find us
🔗Website https://blockhunters.org
🔗Linktree https://linktr.ee/blockhunters
🔗Explorer https://scan.bh.rocks/
🔗Twitter https://twitter.com/BlockhuntersOrg
📃Telegram chat https://t.me/BlockhuntersTG
📃Telegram announcements https://t.me/BlockhuntersAnnouncements
📧Email office[at]blockhunters[dot]org
