The New Building Block of the Particl Economy
Building a completely decentralized economy is our mission. The Open Marketplace is a great example of this, but it’s far from being the only aspect contributing to the Particl global economy. Cold staking pools are also a key player in making sure anyone can contribute to the network and earn staking rewards in exchange for securing the network.
While they’ve been mostly used by small holders to easily pool their funds together and earn staking rewards more frequently, the possibilities enabled by the cold staking model extend much further than that. Indeed, Community Contract Pools, a new form of cold staking pool, are at the core of an innovative economic model through decentralized funding. We’d like to introduce this new concept today.
Table of Content (Click Me)
- Decentralized & Crowd-Sourced Funding Model
- What’s a Community Contract Pool?
- How Do I Use Them?
- What Can a Community Contract Pool Support?
- Non-Binding Community Contracts
- Start a Community Contract Pool of Your Own
- First Community Contract Pool Goes Live This Week
Decentralized & Crowd-Sourced Funding Model
If you’ve been around the community for some time, then you probably know that there have always been some discussions about setting up some sort of passive funding mechanism through Particl Proof-of-Stake. After all, Proof-of-Stake protocols are ripe for this — they reward you with coin rewards in exchange for securing the network. And, let’s be honest here, “securing the network” is a pretty laidback process that doesn’t actually involve much manual labor. You just set up cold staking (or connect to a pool in less than 30 seconds), sit back, and watch your staking rewards pouring in, nicely growing that wallet of yours.
This is precisely what makes passive funding so easy to do. Because donating staking rewards doesn’t actually require you to spend a portion of your initial capital, it makes altruism much easier, especially when it directly benefits the network that’s making that form of passive income possible.
On top of that, airdrops, giveaways, and free stuff, in general, have proven to be effective ways to grow crypto-based communities. With the huge numbers of blockchain projects, though, attracting users now requires projects to be as creative as they possibly can. Luckily for Particl, it possesses some pretty cool and innovative tech that can be used, along with a bit of creativity, to create some pretty exciting incentive programs and passive donation concepts.
Supporting a Community Contract Pool is not just a donation, it is an investment you’re making into the Particl ecosystem to bootstrap its economy.
What’s a Community Contract Pool?
A “Community Contract Pool” is a brand new way to use cold staking pools for reasons other than just providing an easy and convenient cold staking option. This type of pool charges users with a significant fee (usually 100%) fee and is meant to be used in combination with multi-wallets. Its purpose is to fund initiatives, as established by the pool’s operator, using passive community donations in the form of staking rewards.
Community Contract Pools are the easiest way to passively crowdfund initiatives in order to spark growth within the Particl ecosystem. They are also a great showcase of how the currently available Particl tech can foster a brand new, 2.0 type of global economy that simply wasn’t possible before.
How Do They Work?
As mentioned above, Community Contract Pools are meant to be used in combination with multi-wallets. The reason behind this is pretty simple: stakers likely won’t be looking into giving ALL of their staking rewards away. No, instead, they’re more likely to be willing to donate only a portion of them. That’s where multi-wallets come into play.
Multi-wallets allow you to easily manage multiple wallets within the same Particl Desktop instance. It is as if you had many wallets opened up at the same time. The key here is that each of these wallets can be set up with a different cold staking key. This means you can have multiple wallets, on the same Particl Desktop instance, each staking using different staking nodes or pools.
As an example, let’s say that you would like to fund a certain initiative with 10% of your staking rewards. All you would need to do is pretty simple and it can be done under a minute or two:
- Create a new wallet on Particl Desktop
- Send 10% of your coins to this new wallet
- Visit the website of the Community Contract Pool you want to support
- Locate and copy its public key
- Connect your newly created wallet by entering the public key in the cold staking widget
- Zap your funds to start donating your staking rewards immediately
Once that’s all said and one, 10% of all your staking rewards will now be redirected towards the initiative proposed by the Community Contract Pool. Yes, you would be making 10% less in staking revenues, but you’d be fueling up an initiative that can contribute to adding more value to the Particl ecosystem through an active expansion plan that will benefit you and the entire community.
What Can a Community Contract Pool Support?
So what are those special pools meant to support? Well, anything really. As its name implies, Community Contract Pools can be created by anyone in the community, just like any other regular cold staking pool. The operator can decide to support any initiative, cause, or project…and that’s where the creativity side of things comes in handy.
In fact, Community Contract Pool can propose any initiative:
- A marketing or social media campaign
- A targeted airdrop to acquire new users
- A Dapp development fund to support community developers
- Donations to a privacy-focused organization (i.e. Tor Project, EFF, and etc)
- An exchange listing
- A vendor onboarding program
- Pay for media services and articles
The possibilities are endless. Go WILD!
Non-Binding Community Contracts
When staking your funds in a Community Contract Pool, you are essentially entering a non-binding contract with the pool operator. In exchange for your staking weight, the operator is meant to fulfill the mission for which the pool was created.
How many funding a Community Contract Pool receives, however, is entirely up to the stakers. Some initiatives might get more popular than others, and the decentralized part of this system gives full freedom of choice to anyone looking into actively contributing with their staking.
Stakers can easily and quickly exit the pool, without penalty, at any time and for any reason. Community Contract Pools are, with this in mind, a non-binding contract between the staker and the pool operator.
Note: Community Contract Pools should ideally be operated by experienced and trusted community members. Pool operators should state the pool’s purpose, mission, and program. It should stick to it. As a counterparty, they should be transparent and effective in managing the funds. Particl is not responsible for any misbehavior from any pool operated by the community. Stakers should always do their due diligence before donating their staking rewards to a pool operator.
Start a Community Contract Pool of Your Own
Starting a Community Contract Pool is no different than starting a regular cold staking pool. The only difference is the fee — up to 100% instead of the regular ~2.5%. To get all the details on how to start your own cold staking pool, please refer to this tutorial:
We highly encourage the community to come up with their own projects. The greater the number of Community Contract Pools, the more initiatives can get funded!
First Community Contract Pool Goes Live This Week
To kickstart this new concept, we will announce this week the first Community Contract Pool and reveal its purpose. The campaign it supports will help drive attention to the project and its Open Marketplace by incentivizing influencers to promote and talk about it. Stay tuned as more details will be posted on Particl.news this week!