Proposal | Valid Community MasterNode Staking Solution

Voting START date: Sunday, September 17, 2023, 7:05 PM EST
Voting END date: Friday, September 29, 2023, 10:05 PM EST

“Valid Protocol” a MasterNode Staking Solution for the #XDCNetwork

I. Introduction:

The XDC Network is seeking proposals from qualified teams and individuals to undertake projects that will contribute to the improvement and evolution of the XDC ecosystem. XDCS is excited to submit our proposal for consideration.

II. Applicant Details:

• Company: X Digital Capital Solutions, LLC (XDCS)

• Email Address: contact@xdcs.io (For all future correspondences)

About Us:

XDCS is a small team of blockchain enthusiasts with a passion to further develop and enhance the XDC Network and bring value to the community. Our Founders have various professional backgrounds, including finance, sales, project management, public service, and entrepreneurship with a full-time passion for connecting the physical world to the digital world. Over the years, we have developed outstanding relationships with other Development teams who have played an integral role in the development of our protocol. We are committed to continuously dedicating our full attention to this project despite our concurrent work obligations in the public sector.

III. Grant Application Details:

Grant Category:

Core Layer 1 protocol development & maintenance; Infrastructure support.

Project Description:

Our project, “Valid Protocol”, aims to decentralize XDC Network validators by providing a liquid staking protocol available to all Network participants. You can find more information about our team and project on our website www.xdcs.io and our GitHub repository, which will be posted publicly in the near future.

Project Goals and Aspirations:

• If funded, our project will evolve the XDC Network by allowing the extraction of a fungible Liquid Staking Derivative (LSD) for all Network participants: Liquid Staking applications optimize capital allocation by enabling users to stake their tokens while simultaneously using them for other purposes. This flexibility encourages more users to participate in staking because they can earn rewards on their assets while using their LSDs as collateral in decentralized finance (DeFi) applications, lending platforms, or as collateral for loans. This approach unlocks new opportunities for users to leverage their staked assets for further financial gains, enhancing the value proposition of the blockchain Network, and increasing Network activity.

• Democratizing Network validators will also add value by increasing TVL and transactional volume on the Network. Users will need to sign a transaction to claim their Network rewards each month along with follow up transactions to accomplish the users desired outcome.

• Compared to other projects on the XDC Network, "Valid Protocol" prides itself as the sole Liquid Staking application on the network. You do not need to hold any additional cryptocurrencies, nor NFTs, to participate in staking and earn rewards through the "Valid Protocol."

Milestones:

• Current project status: Our project is completing its final audit.

• Milestones and benchmarks:

1. End of Q4 2023): Launch V1 and give access to Network participants who want to receive Network rewards by means of staking inside of validators. V1 will have a Non-transferable Liquid Staking Derivative.

2. Q2 2024): Launch V2 will allow the Liquid Staking Derivative to be transferable.

3. Q4 2024): Launch V3 will enable individual owners of Network validators not participating with this protocol to extract Liquid Staking Derivatives.

Budget:

• Requested XDC amount: 1 million XDC
• Justification: The requested funding will be allocated as follows:

o Development: $30,000

o Marketing and community outreach: $5,000

o Other expenses:

Audit with potential third-party insurance: $20,000

Legal: $10,000

• The past two years, the XDCS team has worked diligently designing, bidding, studying, and building a staking solution for the XDC community. To-date, this project has been entirely funded by the Founders. The XDCS team would like to thank every team, community member, and the XDC Foundation members for their guidance and support in helping us bring this solution to the XDC community.
• Liquidation Requirements: We expect to liquidate 550,000 XDC tokens to support marketing, community outreach, and legal expenses. The remaining grant funds will stay in XDC, as XDCS remains committed to collaborating closely with other XDC Network enthusiasts. Payments to these entities and individuals will continue to be made in XDC. Sustainability:
• Our project will become self-sufficient through the XDCS team accruing and setting aside a portion of the difference between the validator monthly rewards payouts and the monthly staking reward distributions to the XDC “Valid Protocol” community members.
• Additional operating costs, if any, will continue to be covered by the XDCS team’s personal funds and the remaining portion of accrued rewards from the validator monthly payouts.

Legal:

• XDCS is incorporated and registered in the United States (Texas and California) Delaware.
• XDCS is in the process of moving the corporation to Delaware, to ensure ideal protections of its community members.
• The recipient of the funds, if our proposal is accepted, will be X Digital Capital Solutions, LLC.

IV. Proposal Submission:

XDCS understands the positive funding decisions are made quarterly on March 31, June 30, September 30, and December 31, and are prepared to participate in a demo call with the decision-makers as needed.

V. Evaluation Criteria:

We believe our proposal aligns with the evaluation criteria as it demonstrates the potential beneficial impacts on the XDC Network, a well-justified budget, and clear sustainability plans.

VI. Additional Notes:

If you have any queries related to this request or need further clarification on any point, please feel free to reach out to us at contact@xdcs.io.

We are enthusiastic about the opportunity to enhance the XDC ecosystem and look forward to the potential collaboration.

Sincerely,
The XDCS Team

Voting START date: Sunday, September 17, 2023, 7:05 PM EST
Voting END date: Friday, September 29, 2023, 10:05 PM EST

In favor of proposal, submit "Vote = YES"
Not in favor of proposal, submit "Vote = NO"

Please feel free to post any questions you might have about the proposal and we will monitor and respond as much as we are able.