Status to launch L2 rollup and token staking contract to further empower community and accelerate ecosystem growth
Zug, Switzerland, July 9th, 2024, Chainwire
With an evolved governance model based on public funding, the Status token will gain deeper utility to benefit the wider community
Status has unveiled plans to launch an L2 rollup alongside a staking mechanism for its native token, $SNT. This unlocks a new public funding model and lays the foundation for a collaborative, open Status ecosystem.
Following a recent governance vote, Status community members have had their say in prioritising more utility from $SNT through both staking and launching Status Network, an L2 rollup on Ethereum.
Status Network is designed as an open playground for communities, with a focus on public funding and geared towards social apps, GameFi, and governance experiments.
In addition, it is intended to be designed as a thin execution layer with maximum reliance on decentralised providers, minimal transaction fees and low operating costs. This will ensure that most of the value created by the chain can be returned to participants.
Status Communities, the token-gated censorship-resistant community spaces which are currently active in the Status app (beta), will also benefit from reduced costs thanks to Status Network. Status Community owners can associate non-fungible tokens deployed on Ethereum and compatible Layer-2 networks with token-gated permissions, bringing new utility to existing tokens.
The admin functionalities for Status Communities currently require features including minting and airdropping tokens which may incur costs, such as gas. The new L2 will reduce these admin costs and even enable sponsoring them, in line with Status’ commitment to remaining accessible.
Cyprien Grau, a Status Core Contributor, explains, “Status Network should empower a diverse set of app builders and users to freely control their activities, with a strong commitment to decentralising the L2 operation in the near future. This dedicated infrastructure will also allow Status Communities to interact, transact, govern themselves, and more, without the constraints of high transaction fees.”
“It also critically lays the foundation for a robust ecosystem of censorship resistant and privacy-focused third-party apps while $SNT staking will enable novel forms of onchain governance over public funding”, he added.
Further, Status is working on a dynamic governance and engagement incentive plan designed for $SNT holders.
Two key highlights of the plan are the intended implementation of veTokenomics and a new experience points (XP) programme to encourage community engagement. If implemented, the goal is to provide $SNT holders the possibility of staking $SNT for voting rights over Status’ public roadmap and allocation of public funding, giving voters the opportunity to earn XP, which are multipliers of voting power of staked $SNT.
Engaged onchain participants, for example those activating Status in-app actions, could also be eligible for XP rewards, which means that even users with smaller $SNT holdings could potentially gain an impactful amount of governance influence within Status over time.
“Increasing the governance influence of engaged community members is part of staying true to our goal to work towards decentralisation. When our community has a greater say over the development direction of Status, it benefits the ecosystem as a whole”, adds Cyprien Grau.
A native public funding pool is also intended to be developed through various funding sources, including excess gas fees from L2 rollup operations, partner rewards and external yield.
Funds from this public pool are intended to be allocated based on the $SNT holders’ community votes, with voting power weight corresponding to XP. This will benefit a wide range of participants like Status Communities, liquidity providers, app and protocol developers, yield markets and infrastructure providers
The Status team will provide more updates over the summer on additional specifics of the new governance model as well as the L2 launch date.
About Status
Status is a globally distributed collective working to build products, tools and infrastructure for inclusive communities that can defend human rights, enable free speech, protect privacy and promote self-sovereignty. The Status app enables:
- Decentralised communities with token-gated channels
- Trustless access to web3 dApps, DAOs, NFTs, DeFi and much more.
- Truly decentralised messaging powered by Waku
- Seamless integration with Keycard, which provides convenient, and simple hardware-grade crypto asset security at a highly accessible price point.
For more information: https://status.app/