DAO Multisig
Reward Custody Risks
DAO Multisig
Custody over the rewards is handled via a 'Multisig' mechanism, which in turn is governed via a Decentralized-Autonomous-Organization (DAO).
A Multisig mechanism requires a certain threshold of different parties signing a transaction before it is considered valid, e.g. 2 out of 3 parties need to sign a transaction before it can be processed.
A DAO is a decentralized organization that is governed through programmatic and transparent rules. The right to participate in the DAOs governance is represented through tokens.
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Reward Custody Risks
Reward Custody Risks
Reward custody risk refers to who has control over the delegators pending rewards.
There are three subcategories through which the reward custody risk can be clustered: 'Validator-Custody'; 'Self-Custody'; or 'DAO Multisig'.
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Protocol Mechanics
For better classification, differentiation and comparability of different Blockchain networks, we identified different Protocol Mechanics.
Staking Mechanics
Staking Mechanics refer to the token economics, which is a new branch of the economy that explains the structure of a particular ecosystem in the blockchain sphere. It describes the study, design, and implementation of economic systems built on blockchain technology. Each platform and blockchain application is developed under its own token-economics model.
Proof-of-Stake blockchains not only differ in terms of their 'Protocol Mechanics', but also in terms of certain staking-related parameters, e.g. their reward or inflation rate as well as certain actions that are required by delegators.
