Staking and Signaling

Members can use $deSci tokens to signal long-term support for individual projects. A member may stake their $deSci tokens for a set time period until a project milestone is reached (e.g. 3 months/6 months/12 months). Projects predetermine milestones and they must be measurable. Their outcome is uncertain, however, meaning members take additional risk by foregoing liquidity.

When a project reaches a milestone, staked tokens unlock. In return for locking tokens, deScier pays out regular signaling rewards to stakers. This process sends valuable signals to the market, as it showcases the confidence of members in specific projects and initiatives. Furthermore, it reduces volatility and creates a circular economy for members, who actively contribute value and review project success.

We anticipate implementing signaling after the first successful project runs an initial funding cycle, giving members time to sufficiently model this mechanism and implement it in deScier version 2.0.