Ethereum

EigenLayer

<blockquote>We&#39;ve all watched numerous crypto projects run the same token distribution playbook, and it&#39;s time to re-write the script. The path we&#39;ve traveled — paved with farmed airdrops and under the table deals — has led us astray from the core principles that sparked the crypto revolution.Today, eOracle charts a new course with the introduction of the Merit-Drop: a paradigm shift in ownership distribution.</blockquote><h2 id="header-0">The Incentive Misalignment Crisis (The Problem.)</h2><p>Let&#39;s confront an uncomfortable truth: our current incentive models are fundamentally broken. Airdrops, once hailed as innovative distribution mechanisms, have devolved into speculative frenzies that reward short-term farming and concentrate power in the hands of many who have no vested interest in the success of the protocol. This isn&#39;t just a flaw in the system—it&#39;s an existential threat to the prosperity decentralized network.</p><p>These practices distort market dynamics, creating artificial demand and unsustainable growth patterns. They undermine the very principles that blockchain technology promised to uphold. If left unchecked, they threaten to transform the decentralized economy into a mirror image of the centralized systems we sought to replace. Where the rich and powerful constantly extract value on move on to the next opportunity, often leaving the builders and retail users in their wake.</p><h2 id="header-1">The Merit-Drop: A Paradigm Shift in Incentive Alignment (The Solution.)</h2><p>Enter Merit-Drop — a departure from conventional token distribution models. This isn&#39;t just another airdrop or liquidity mining program; it&#39;s a fundamental restructuring of how we can distribute ownership based on aligned incentives within the blockchain ecosystem.</p><p>The Merit Drop begins with allocating 400,000,000 EO tokens: equivalent to 4% of the total supply - through a nuanced, merit-driven scoring system that considers multiple factors:</p><ul><li>Active usage of eOracle</li><li>Early adoption</li><li>Asset diversity</li><li>Total Value Secured</li><li>Long-term participation</li></ul><h2 id="header-2"><strong>Empowering Informed Governance</strong></h2><p>The Merit-Drop goes beyond mere token distribution—it cultivates qualified decision-makers for governance. By rewarding active participation, eOracle ensures that those who govern the protocol have an intimate understanding of its workings and challenges.</p><p>This approach transforms governance from a passive ownership model into a meritocracy based on expertise and commitment, thus creates a fair and sustainable ecosystem feedback -&gt; strengthen flywheel, which benefits all.</p><h2 id="header-3">How It Works:</h2><ol><li>Protocols integrate eOracle&#39;s data contracts &amp; validators into their systems</li><li>Necessary data queries are provided for the merit scoring</li><li>Scores are calculated in real-time throughout each ongoing bi-weekly period</li><li>Rewards are allocated based on final scores at the end of each period</li><li>Participants then claim their earned rewards on a bi-weekly basis</li></ol><h2 id="header-4">The Road Ahead</h2><p>The Merit-Drop program represents a significant shift in how we approach token distribution and ecosystem building.</p><p>It&#39;s not a universal solution, and we recognize it won&#39;t appeal to everyone - however; our focus is crystal clear:</p><p>We&#39;re building for protocols and developers who are committed to active integration and long-term participation, as we believe it will create a much more resilient and valuable network for years to come.</p><p>As we continue to grapple with the challenges of building truly decentralized systems, initiatives like the Merit Drop force us to confront hard questions about value, incentives, and the very nature of what we&#39;re trying to achieve in this space.</p><p>By allocating 400,000,000 of EO token supply to this program, eOracle isn’t just incentivizing adoption—it’s laying the groundwork for a more decentralized, efficient, and user-centric Oracle infrastructure. The program isn&#39;t just a token distribution scheme—it&#39;s a blueprint for a more sustainable, aligned foundation for a community own data layer.</p><p>Come and join the revolution; we welcome anyone and everyone:</p><ul><li><a href="www.eoracle.io" rel="noopener noreferrer nofollow">Visit our website</a></li><li><a href="https://x.com/eoracle_network?ref&#61;blog.eoracle.io" rel="noopener noreferrer nofollow">Stay updated through our Twitter/X</a></li><li><a href="https://discord.gg/eoracle?ref&#61;blog.eoracle.io" rel="noopener noreferrer nofollow">Join our community on Discord</a></li></ul>

The Merit-Drop: Revolutionizing Ownership Distribution

Table of Contents

eOracle

Other articles published on Oct 17, 2024

Weekly Article Recap: 10/07-10/11

Dogecoin Founder Stresses Crucial Role of Satoshi Nakamoto

Experts Predict Litecoin (LTC) Price to Hit 4 Digits – Major Rally Ahead?

Ripple Explores Partnership With Ex-PayPal CFO, XRP Price Eyes $1

Litecoin Soars After First ETF Filing, Eyes On $1,000 Target

Paxos Launches Yield Bearing Wrapped $USDL on Injective

Join our free newsletter for daily crypto updates!