DLP Governance

This is a draft and subject to change based on testnet findings and community feedback. It should not be relied upon as a legal promise or guarantee for future implementations.

Data Liquidity Pools (DLPs) transform raw data into valuable on-chain 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, allowing $DAT holders to directly influence key decisions.

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

Competitive Process

At launch, 16 slots are available for Data Liquidity Pools (DLPs) eligible for block rewards, with the rationale being to drive data quality and ensure that DLPs act in the best interests of growing the network overall.

The selection of DLPs is a competitive process, designed to prioritize those who can contribute most effectively to the ecosystem's success. 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 $DAT 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 $DAT 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 $DAT holders) avail of block 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

Additional DLP block reward slots can be created periodically to accommodate network growth and increased participation. This expansion is determined by a resolution process, requiring approval by a supermajority vote of 66%.

Once new slots are created, the block rewards are divided among the total number of eligible DLP slots, ensuring that all participating DLPs receive a fair share based on the updated allocation. This mechanism allows the Vana network to remain flexible and adaptive to the evolving needs of the ecosystem.

Initial DLP Selection

At launch, the initial DLPs eligible for block rewards will be decided by a community poll involving participants who have contributed to the Satori Testnet. This ensures that the foundational DLPs are chosen by those who have demonstrated an early commitment to the network, aligning the initial selection with the interests of active and engaged community members.