Protocol Rules

# Data Provider

Data providers stake ETC in the Oracle contract to submit data. The Oracle is a contract that implements a proof of stake consensus.

The staked ETC serves a dual purpose: it deters malicious or inaccurate data submissions through a risk of loss while simultaneously enabling providers to earn MANA. This MANA, in turn, represents a claim on a larger portion of the bounties.

The distribution of bounties, funded by these swap fees, occurs at every Price round, dynamically adjusted based on the accumulated swap fees, thereby creating a direct link between the value provided by the data submitters and their compensation.

To safeguard against dishonest behavior, there is a mandatory two-round waiting period for withdrawing liquidity. This delay ensures that the community has sufficient time to identify and penalize any malicious actors before they can extract their stake.

# MANA

The incentive for staking is to accumulate MANA faster.

MANA is a non-fungible token that represent your reputation in the Oracle. Your share of a bounty does not depend on the size of your stake, but on the amount of MANA you own. For each round, only one MANA is minted and distributed to stakers pro-rata to the amount of stake they deposited and if they submitted accurate data in this round.

MANA can't be sent or received, it lives exclusively in the Oracle contract.

When a staker withdraw a portion or all of its stake, a proportional amount of MANA is burned for this staker.