Proof of Time Power (PoTP)
Last updated
Last updated
Proof of Time Power (PoTP) is a decentralized incentive mechanism designed to enhance the stability of long-term capital within the DeFi ecosystem. By quantifying the value of users’ staking time, PoTP equitably distributes governance rights, reward rights, and ecosystem resources, ensuring that the interests of long-term contributors are not undermined by the influx of short-term arbitrageurs.
PoTP uses a weighted calculation model based on time functions, liquidity parameters, and governance contributions, ensuring that long-term small-scale stakers are not marginalized.
PoTP Formula:
Where:
t: Staking duration (in days)
Stakeᵢ: User’s staking amount
Gᵢ: User’s governance participation (e.g., voting frequency, proposal approval rate)
Lᵢ: User’s loyalty score (e.g., rewards for not withdrawing over time)
λ, μ, ν: System-dynamic weight factors to balance the influence of time, governance, and loyalty
PoTP weights are updated every 24 hours to ensure the rights of long-term supporters are not diluted by short-term market volatility.
AI oracles analyze market trends and dynamically adjust λ, μ, ν to optimize the PoTP incentive mechanism.
Governance Weight, Rewards, and Privileges
PoTP influences users' governance weight, reward distribution, and access to advanced privileges in the KLK Sync Nexus ecosystem, ensuring long-term users gain greater economic benefits.
The top 10% of PoTP users can run for "Time Lord", enjoying rights to protocol revenue, governance proposals, and ecosystem resource allocation.
A Bonding Curve mechanism rewards high PoTP users with higher returns, encouraging long-term holding.
Time Lords influence critical KLK Sync Nexus governance parameters, such as DCP fund allocation and PoTP parameter adjustments.
PoTP points can be redeemed for "Spacetime Keys", unlocking high-yield DeFi compound pools and RWA asset subscription rights.
Integrated with NFT mechanisms, Spacetime Keys can be traded on secondary markets, enhancing PoTP asset liquidity.
Built on the ERC-6551 standard, PoTP accounts offer higher extensibility, enabling on-chain identity management.
AI Monitoring of Abnormal PoTP Growth
AI oracles detect unusual staking behaviors, such as large-scale deposits and withdrawals within a short period.
If abnormal PoTP growth is detected, the system automatically adjusts λ, μ, ν parameters to prevent reward imbalance.
Gradual Unlocking of PoTP Privileges
To deter short-term large-scale staking followed by rapid exit, PoTP employs a nonlinear unlocking curve for user privileges:
k: Adjustment factor
t: User’s staking duration
Implements Quadratic Voting to reduce the influence of whale users and ensure decentralized governance.
Uses Merkle Tree to store governance voting data, ensuring immutability and transparency.