DLP Governance

This is a draft and should not be relied upon as a legal promise or guarantee for future implementations.

Data Liquidity Pools (DLPs) transform raw data into valuable onchain assets, playing a crucial role in Vana's architecture. Given their central importance, it is logical for DLPs to be at the heart of community governance.

Combined with the DLP Rewards, DLP Governance ensures the sustainability of the ecosystem by aligning governance with contributions that support the network's growth.

DLP Selection Process

The DLP Rewards apply to the top 16 DLP slots, prioritizing quality over quantity. These DLPs are selected through a staking mechanism where VANA token holders stake their tokens with DLPs they believe will perform well. The top 16 DLPs, ranked by total staked tokens, qualify for rewards, which they share with their stakers.

This competitive system ensures only the highest quality data feeds into Vana. Each DLP must demonstrate a robust "proof of contribution" system, validating the value of their collected data. This focus on data quality is crucial for Vana's long-term goal of building a user-owned AI model capable of outperforming advanced systems like GPT-6. Leading DLPs are set out in the DLP Leaderboard.

DLP Staking and Periodic Snapshots

DLP Staking in the Vana network allows users to stake their VANA tokens in support of their preferred DLPs, directly influencing which DLPs are eligible for block rewards.

Regular periodic snapshots are taken to ensure that the top 16 DLPs, determined by the amount of VANA staked, continue to reflect the community's choice.

This system ensures that DLPs that add value to those who are most invested in network growth (and therefore largest VANA holders) avail of DLP rewards. It also provides clear incentives for DLPs to continuously create value. At the same time, it fosters competition to drive high quality data by allowing new entrants, with community support, to overtake incumbents.

Creating new DLP Slots

The parameter of the top 16 slots earning rewards is governable, and if the community votes to increase slots, it can be expanded to allow more DLPs to earn rewards for onboarding data onto the network. Vana is a permissionless network, so any new DLP can join the network, but only the top 16 DLPs by stake earn rewards.

Initial DLP Selection

At launch, the initial DLP slots are allocated based on performance on Satori and Moksha Testnets and key criteria that reflect their contribution to the network. DLPs are encouraged to publicly launch earlier to ensure that they can start driving these metrics sooner.

DLPs are selected and maintained by a system of governance that aligns with Vana's vision to prioritize community participation. To incentivize competition and ensure high-quality data within the DLPs, Data Liquidity Rewards are distributed based on weighted, normalized performance across multiple metrics.

Exact metrics and their weights will be defined by the Vana DAO participants.

This comprehensive approach ensures that DLPs are evaluated on their overall contribution to the network's growth and sustainability.

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