Valkyrie is able to fully support a rewardable ecosystem through aligning the reward structure of diverse campaigns, utilizing referral codes, and providing additional VKR incentives through active governance.
The Valkyrie Protocol has four major types of users (may be more than one).
- Campaign Creator
- Campaign Participant
- Campaign Referrer
- Liquidity Provider
A campaign creator is a user who utilizes the Valkyrie Protocol to achieve a specified goal as defined by his/her campaign with a participation reward pool. The rewards given to participants can be any CW20 token, but the rewards allocated for referrals must be denominated in VKR. A campaign becomes inactive once a campaign’s reward pool runs out of rewards to distribute, or when the campaign creator chooses to deactivate the campaign. The campaign creator can choose to change the size of the reward pool by withdrawing funds during an active campaign. Valkyrie Protocol has a Community Grant program that provides support to campaign creators who wish to activate their campaigns. A campaign becomes eligible for a Community Grant support once it meets certain criteria and qualifications. If eligible, a campaign creator can submit an application through a governance poll, and if passed will receive reward support.
A campaign participant is a user who has performed some sort of action and therefore receives a reward that is specified in the campaign. As an action-based reward protocol, campaign participants are able to earn rewards by fulfilling the action requirements specified in the campaign. As a result, continuous campaign participation is encouraged through a continuous sharing and distribution of rewards.
The Valkyrie Protocol utilizes a connectable reward structure that allows campaign participants to earn rewards not only for participation but also for referrals. The additional rewards given to successful referrals are unlimited in the sense that additional successful referrals through a linked network will always accrue rewards. As a by-product, this incentivized sharing schema allows the campaign producer to improve product proliferation through sharing.
VKR liquidity providers are those who provide liquidity to the VKR-UST Terraswap pool to facilitate ease of access when buying or selling VKR. Given that VKR is used as an incentive for campaign participants, a high level of liquidity is crucial for the success of the protocol.
Valkyrie employs a cascading referral chain whereby rewards can be continuously earned by sharing the campaign with other users. This is an industry-first and is vital to the success of decentralized application and/or protocol activation.
Rewards for successful campaign referrals are paid out in the form of VKR allocated by the campaign creator. Thus active participation in Valkyrie as well as general DApp activity will correspondingly lead to a greater usage of VKR.
The Valkyrie Protocol's main interacting entity is the user's wallet. In order to prevent cases of abusing, the campaign creator can set minimum requirements that a wallet must have before being eligible to receive participation/referral rewards. For example, a campaign can require that the participant be a LUNA staker, so as to ensure that the participant has skin-in-the-game with regards to the Terra ecosystem. The Valkyrie Protocol has security measures in place to mitigate the risk of misbehaviour. For example, a campaign can require VKR to be "locked" (later returned to the user) as a mandatory criteria to make a wallet eligible for participating in the campaign. These security mechanisms like locking VKR can make campaign abuse economically inefficient and therefore can minimize bad behaviour.
Various on-chain data will be provided by the protocol with regards to the performance (proliferation, number of participants, participant trees, etc) of campaigns executed on Valkyrie. This will provide campaign creators with useful analytical data to manage the performance of their DApp activation.