Governance - IISS

Yellow paper: https://icon.foundation/download/IISS_Paper_v2.0_EN.pdf

Basic IISS Overview

  • ICON Incentives Scoring System (hereinafter referred to as "IISS") is an evaluation system for accurately measuring and compensating the contributions of ICONists within the ICON Network.

  • The ICON Network defines 7 contribution items based on the 'Delegated Proof of Contribution' incentive protocol to identify and promote significant contribution activities to the decentralized network. Each ICONists can demonstrate its contribution to the ecosystem via delegation.

  • I-Score is the ecosystem contribution score. IISS calculates and distributes I-Score for each contributing item every 43,200 blocks and determines the ICX issuance accordingly. After then, I-Score can be converted to ICX via Public Treasury. Based on the advanced on-chain governance system, IISS determines the issuance amount of ICX for the ecosystem.

  • ICON Network's on-chain governance-based crypto economy is designed to work flexibly depending on the network situation that the network can develop successfully in a decentralized environment.

Delegated Proof of Contribution

  • Delegated Proof of Contribution (DPoC) is the incentive protocol to determine the contributions in the ecosystem. IISS works based on DPoC mechanism. 7 types of contribution items can be demonstrated by IISS.

  • Representative

    • A Public Representative (P-Rep) is a full node on the ICON Network that participates in consensus and governance.

    • P-Reps consist of the top 22 Main P-Reps and 78 Sub P-Reps, and are elected by ICONists.

    • Block Validation Reward

      • Block Validation Rewards are given to the top 22 Main P-Reps for block production and verification.

    • Representative Reward

      • Representative Rewards are given to all 100 P-Reps according to the delegated amount of ICX received.

  • Ecosystem Expansion Project (EEP)

    • EEP is a project that contributes to the growth and expansion of the ICON Network and ecosystem. The scope of an EEP includes ICON mainnet development, 3rd Party App development, community growth, educational initiatives, and so forth.

    • All ICONists can propose and execute EEPs and receive a reward when they are delegated a certain amount of stake from other ICONists.

    • EEP Reward

      • The top 100 EEPs can be rewarded according to the delegated amount of ICX from the Public Treasury.

  • DApp Booster Program (DBP)

    • DBP is a program for activating ICON Network and ecosystem. DApp increases the practical value of ICON Network and makes it useful.

    • DApp refers to a decentralized application that operates one or more SCOREs (Smart Contract on Reliable Environment) on the ICON Network.

    • All ICONists can evaluate DApps and delegate their ICX to DApp.

    • DBP Reward

      • The top 100 DApps can be rewarded according to the delegated amount of ICX from the Public Treasury.

  • ICONist

    • All ICONists can receive the reward in return for delegate ICX to P-Reps, EEPs, and DApps.

    • Three types of Reward for ICONist

      • Representative Delegation Reward

      • EEP Delegation Reward

      • DApp delegation Reward

    • All ICONists can contribute to the network through the delegation of ICX.

    • Therefore, ICONist can receive rewards according to the delegated amount of ICX.

  • Contribution Items

Item

Description

Block Validation Reward (β1)

Reward for block production and verification when a representative produces and verifies a block

Representative Reward (β2)

Reward for delegation when a Representative is delegated by ICONists

Representative Delegation Reward (β3)

Reward for delegation of a representative when ICONists delegate a representative

EEP Reward (β4)

Reward for delegation when an EEP is delegated by ICONists

EEP Delegation Reward (β5)

Reward for delegation of an EEP when ICONists delegate an EEP

DApp Reward (β6)

Reward for delegation when a DApp is delegated by ICONists

DApp Delegation Reward (β7)

Reward for delegation of a DApp when ICONists delegate a DApp

Governance Variables

  • The following table introduces the governance variables mentioned above. The governance variables consist of a total of seven items: reward variables for the entity delegated ICX, reward rates for the ICONist delegated ICX, and variables for setting the amount of Step, the fee for the network.

  • Governance Variable determines the amount of reward for each contribution item.

Variables

Name

Explanation

i_rep

Expected Monthly Reward per Representative

Expected reward amount for representative is determined by the weighted average of each representative suggestion. Each P-Reps suggest this amount based on their expenditure and profit.

i_eep

Expected Monthly Reward per EEP

Expected monthly reward amount for the EEP when EEP receives 1% of total delegation.

i_dapp

Expected Monthly Reward per DAPP

Expected monthly reward amount for the DApp when DApp receives 1% of total delegation.

r_rep

Representative Delegation Annual Reward Rate

Representative Delegation Annual reward rate is determined by the delegated amount to the representative.

r_eep

EEP Delegation Annual Reward Rate

EEP Delegation Annual reward rate is determined by the delegated amount to the representative.

r_dapp

DApp Delegation Annual Reward Rate

DApp Delegation Annual reward rate is determined by the delegated amount to the representative.

s

Step Price

Minimum transaction fee in the ICON network which is determined by representatives.