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Complying with VRC-14 (DataDAO Rewards)

Now that your data architecture (VRC-15) and token (VRC-20) are sorted, let’s maximize your incentive potential under VRC-14.

This new reward system measures data usage, trading volume, and unique contributor counts, distributing rewards as daily token buy-ins for the DataDAO. You don’t receive the VANA directly — it’s used to purchase your token and provide liquidity, helping your token’s market.

Below are the key steps to handle:

Confirm Basic Eligibility

  1. No “Top 16” Restriction
    • All DataDAOs that meet the new requirements (VRC-5, VRC-15, VRC-20) are eligible.
    • If you were part of the old top 16 system, that no longer applies. Focus on meeting the updated standards instead.
  2. No More 10,000 VANA Stake
    • You no longer need to stake 10,000 VANA to be eligible for DataDAO rewards.
    • Feel free to stake it in Data Validators or use it as liquidity — whatever works best for you.
  3. VRC-5 Compliance
    • You must continue to be recognized as a valid DataDAO under baseline definitions (proof-of-contribution, data ownership, etc.).
  4. VRC-15 Compliance
    • Implement data refinement, encryption, and TEE-based query support.
    • Ensure your data access fees can be tracked onchain, because they factor heavily into your reward score.
  5. VRC-20 Compliance
    • You must have (or upgrade to) a token that follows the VRC-20 supply, vesting, fee, and security rules.
  6. Handling Older Data
    • Any data contributed before you deployed the VRC-15 refinement step won’t be recognized by the new system unless you batch-refine it.
    • If you want old data usage to boost your rewards, work with the Foundation on the most efficient approach to encryption and updating old data.

Reward Scoring

  1. Extended Epochs
    • Epoch 6 runs from April 1 – July 1. Rewards for that period are calculated at the end.
    • Once you receive your share of the reward pool, the protocol deploys those rewards by buying your token daily in the next epoch (Epoch 7).
  2. Scoring Breakdown
    • 50%: Data Access Fees → encourages real usage of your data via TEE queries.
    • 30%: Trading Volume → promotes healthy token liquidity.
    • 20%: Unique Data Contributors → attracts real data providers.
  3. Polynomial or Outlier Adjustments
    • If your data usage or trading volume dwarfs everyone else’s 1,000× over, the protocol can propose an update that normalizes your score to avoid overshadowing the rest of the ecosystem.
    • You’ll receive a heads-up if that happens
  4. Annual Reward Pool Scaling
    • The base annual pool is 0.5% of the supply. It scales +0.5% for every $500M in Total Data Value Locked (TVDL), up to a 5% cap.
    • You can’t directly affect this, but it’s good to be aware that more TVDL across the ecosystem can raise the overall rewards pool.

Daily Token Buy-Ins

  1. 2% Slippage Limit
    • Each day over the next epoch, the Vana Foundation attempts to buy your token with your share of the reward pool.
    • If the slippage exceeds 2% on that daily buy, that day’s reward portion is not deployed and will roll over to your next epoch allocation.
    • If in the next epoch if Foundation can’t deploy it due to high slippage, that chunk of rewards is lost.
    • Action: Seed enough liquidity so your pool can absorb daily buys without spiking slippage.
  2. 15% Price-Drop Rule
    • If your token’s market price falls more than 15% below the reference price (the average price at which the protocol has been buying your token), the protocol may pause or review further buy-ins.
    • Monitor your price to avoid sudden crashes during the reward distribution.
  3. Liquidity Freedom
    • Under VRC-20, do not implement any logic that traps liquidity or imposes large transaction fees (>3%).
    • This also helps maintain a stable market and reduces your chance of losing reward days due to slippage.

Monitoring & Audits

  1. Protocol Security Checks
    • The Vana Foundation or community can investigate weird trading patterns, wash data usage, or suspicious spikes in contributors.
    • Serious findings can lead to partial or total disqualification from that epoch’s rewards.
  2. Stay on Top of Changes
    • Future updates or small polynomials might be introduced to keep the ecosystem fair.
    • Keep an eye on announcements or new proposals that might tweak how outliers are handled.

Updated 6 days ago