NEM HUB Update – Staking and workdrops
We had a very successful Soft launch with the NEM HUB. Over $32 million XEM have been staked in the platform and many of the participants have already started to use their influence to vote on community submissions. We want to thank you for providing feedback as well.
1 ) Starting from today we will distribute “Workdrops” every Monday for the first 4 weeks until the next phase of the HUB will be initiated. Our main objective is to reignite our community via these weekly workdrops, in order to gradually increase the value of our native currency. Workdrop screening for distribution happens at the fixed time of 1am UK time ( GMT+1 )
2 ) Workdrops will be redefined each week based on information that we collected from the previous week. The factors will be continuously improved in order to create a positive feedback loop that can generate fundamental value for NEM which exceeds the inflation of coin within the ecosystem. This is intended to gradually increase the value of XEM.
3 ) The first workdrop will be distributed today afternoon GMT time. Workdrops are designed to activate existing token holders in order to become active members of the ecosystem.
4 ) Workdrops function in the following way: The HUB will receive a budget each week, which is then distributed amongst all active participants on the HUB.
5 ) How funds are distributed is decided by the community of Validators as well as a participant’s stake. A workdrop consists of 2 core aspects: 1st – The work index, which represents the amount of fundamental value that a user has brought to NEM in the last week as well as 2nd – The Investor Index which measures the monetary value that individual users brought to NEM.
6 ) Work Indexes are defined by individual users, voting on different submissions as well as users participating in direct tasks. Investor indexes are defined by staking tokens in the system. Both are needed to create a healthy growing ecosystem and both are required to successfully earn on the HUB. Currently the workdrop algorithm is weighted 84% on work and 16% on staking.
To put this into context: Participants that add the most value and actively validate other works will be paid the most. Large inactive stakeholders will earn rewards but less then small, but very active stakeholders.
7 ) Stakeholders can earn daily validation rewards for upvoting submissions, that they believe are more valuable to the NEM ecosystem. The more validation rewards a validator earns, the higher will be their respective workdrop. Stakeholders are given the responsibility to ensure that users that add the most value will be incentivized to add more value to the ecosystem.
Note: Over the course of the next 4 weeks these factors will change gradually. Once everything is finalized, users will be given the possibility to see their weekly or monthly rewards in real time in their rewards tab on the HUB. However, this feature will not be enabled until all the factors are calibrated.