Hello everybody! Glad to see a lot exercise once more on r/ethereum!! Needed to provide everybody an replace on Octant and the place we’re heading in 2025.

If you happen to're unaware of Octant, its a challenge constructed by Golem Basis, that facilitates sustainable, community-coordinated impression funding at scale. We’ve demonstrated the facility of sustainable funding of impactful tasks by staking 100,000 ETH (~$350 as of immediately) and utilizing a lot of the yield to fund broad primarily based public items within the Ethereum ecosystem.

Over the previous yr, we’ve distributed thousands and thousands of {dollars} to a whole lot of open-source and impactful tasks builders, supporting necessary tasks akin to Protocol Guild, Tor Browser, Funding the Commons, L2BEAT, BuidlGuidl, and lots of others.

Now we’re able to scale this far past our personal means, to provide Ethereum an enormous aggressive benefit.

TLDR: We’re designing a system the place ecosystems with a token AND sustainable worth flows, or treasuries that may be deployed into yield bearing methods can plug this software into their neighborhood, and fund impactful ventures for ecosystem progress. Collectively every collaborating ecosystem will contribute a small portion of worth move to fund Ethereum huge public items. The lengthy model of that is defined under.

Octant Protocol (aka Octant v2)

The Octant Protocol is a subsequent iteration of Octant challenge.

It’s a capital-efficient mechanism that captures yield from revenue-generating methods and different worth streams. It then routes this capital to allocation mechanisms for distribution in alignment with neighborhood preferences.

Person Personas & Key Phrases

• Dragons are Web3 tasks or decentralized communities with substantial treasuries and/or native ERC-20 tokens.
• Regens (present Dragon neighborhood members) are tech-savvy, values-driven people who’re deeply engaged within the blockchain ecosystem.
• Degens are financially pushed people who’re extremely engaged within the blockchain ecosystem.
• Dragon Vault – a DeFi Vault that enables Dragons to deploy their capital and level the yield to the protocol
• Dragon Pool – is a pool that receives a stream to fund the neighborhood ecosystem items or different initiatives associated to the Dragon neighborhood Pool
• Dragon Token – an ERC20 token of the Dragon neighborhood
• Regen (Neighborhood Members) Vault – is a DeFi Vault that enables Regens/Neighborhood Members stake the neighborhood token, obtain rewards from the Dragons and use them to fund public and neighborhood items
• Sustainability Pool – is a pool that each Dragon contributes to. You’ll be able to give it some thought as a Sovereign Wealth Fund of Ethereum.

Octant V2 Excessive-Degree Design

https://preview.redd.it/rft0r98ppmae1.png?width=1370&format=png&auto=webp&s=f25ca45d46c9dd4575da5f56a1580e541d5076d2

The diagram above illustrates the workflow of a Dragon participating with the system. The protocol permits a number of Dragons to affix and deposit capital into their very own Dragon Vaults, whereas all Dragons contribute a proportion of their yield to the Sustainability Pool.

You’ll be able to take into consideration the Sustainability Pool as a Sovereign Wealth Fund that’s used to fund public items and impactful tasks.

The Dragon Vault deploys that capital into yield-generating methods. These methods could embody ETH staking protocols, DeFi protocols, and many others. The Vault then divides the funding stream between the Dragon Pool, Sustainability Pool, Regen Vault, and different swimming pools/vaults the Dragon needs to make the most of.

For example, if Golem Basis (GF) joins the protocol as a Dragon, it deposits its capital into the Dragon Vault. GF's important sustainable funding stream is solo-staking of 100K ETH by itself infrastructure. The staking rewards or different types of yield are divided within the following approach:

• 15% is deposited into the Sustainability Pool to assist public items that profit everybody
• 35% varieties Matched Funding and is deposited within the Dragon Pool, enabling the neighborhood to create funding rounds
• 25% goes into the Regen Vault to reward the neighborhood
• One other 25% is claimed by GF to cowl the operational prices of working solo-staking infrastructure

The Dragon neighborhood creates funding rounds from the repeatedly flowing funds into the Dragon Pool. Regens (neighborhood members) then vote with the accrued tokens utilizing an allocation methodology, and these votes decide how the funds are distributed.

It's value noting that this mannequin could embody a mechanism that swaps the yield into the Dragon Token. This creates purchase strain for the token after which rewards each regens and tasks with it.

Alignment Token (Basket) & Sustainability Pool

https://preview.redd.it/jntbx9yqpmae1.png?width=1925&format=png&auto=webp&s=2ee930af6651e7af4b9940020a58ed1c2ecbc39b

The cornerstone of the Sustainability Pool design is the basket (alignment token). This token encapsulates ETH and all of the Dragon Tokens, that are repeatedly transformed and deposited into its contract, minting a single token (e.g., OCT) into the pool. Recipients of funding from that pool obtain the basket tokens, which they will then promote in the marketplace to finance their improvement efforts.

Customers of the Regen Vault can repeatedly withdraw and/or vote with their attributed rewards within the rounds (or donate to steady streams) created from the Dragon Pool or Sustainability Pool.

Influence Bonds

https://preview.redd.it/891ra8vrpmae1.png?width=1259&format=png&auto=webp&s=622e4427f555db33836d69945657de53a0f6a42e

When customers vote for tasks, they obtain impression bonds for every challenge they assist. The system mechanically mints the bonds and distributes them to the funders. The tasks themselves don't obtain any bonds. This mechanism rewards customers who take part in voting.

After a set interval, the Sustainability Pool buys again the impression bonds of sure tasks, successfully signaling which tasks had been most impactful. The Pool allocates a sure proportion of OCT tokens (for instance, 10%) to purchase again the bonds. The Dragons make the choices of which tasks have their bonds bought, probably knowledgeable by Influence Evaluators. This strategy ensures future buy of the bonds. In essence, this features as an impression prediction market, assuming the buybacks are primarily based on correct impression evaluations.

Abstract

https://preview.redd.it/5n4goouspmae1.png?width=1452&format=png&auto=webp&s=a793594af98640b74d5ec1ebed8296c859ce4cb3

The picture above illustrates Octant's flywheel, which brings collectively numerous ecosystem contributors and creates incentives for collaboration. Our objective is to align ecosystem gamers with various motivations, fostering cooperation to realize a steadiness between particular person rewards and funding for impactful tasks.

Please ask any questions you will have! We’ve our subsequent public items funding spherical starting January eleventh. To be taught extra about Octant, be a part of our discord: https://discord.com/invite/octant