Earlier this year we unveiled our roadmap for 2022 wherein we announced our focus on providing the critical infrastructure for identity management in web3. This is an important next step, because our identity management solution (multichain DID) is essential in order to grow the Fractal ID ecosystem and accomplish our mission: empowering and incentivizing users to exchange data in a privacy-preserving way.
Over the last two months our team has been head down creating a new token incentive model to optimally support our shift in strategy. The previous model was designed to reward users with FCL tokens for enabling browser data capture and storing it locally on their devices. This model has shown to be incomprehensive, so far that it’s not optimally fostering the growth of Fractal ID. The FCL token should namely also incentivize users to sign up for Fractal ID (KYC), developers to build with our technology, community members to actively share the word about what we’re building, and stakers of FCL should be rewarded for staking! Today we’re glad to present the updated incentive model.
The Initial FCL Token Incentive Model
So far, users have been rewarded with FCL tokens for enabling the protocol to capture their browser data and store it on their devices. Today we want to announce that in the short term we’ll be reducing the portion of FCL rewards that go towards browser data capture.
The Updated FCL Incentive Model
As of Q3 2022 these funds will be routed into a development account and an incentivization account controlled by Fractal ID and will be allocated in the following 4 ways:
- Browser data capture: Users who enable browser data capture.
- KYC rewards: Users who complete their KYC compliance via Fractal ID.
- Development funds: Developers who collaborate with Fractal ID’s team in hackathons or development events to help further optimize our code.
- Staking program: Token holders who believe in our long term growth.
In the future, we will also be introducing out-of-band incentives to community members who contribute to Fractal ID’s growth by referring friends and spreading the word.
1. Browser Data Capture
As a user, your Fractal ID Wallet will continue capturing browsing data and storing it on your device, and you will still earn your rewards for data capture. However, we are reducing this portion of block rewards to 5% and redistributing the rest to support the growth of the Fractal ID Ecosystem.
Long term, you will be rewarded for your data by developers of third-party apps for granting them access to your data. Please note that Fractal ID will not make a profit from your data as we are not selling or sharing it to anyone. You are the owner of your data! Exactly for this reason, it makes sense to incentivize the development of new apps now, for you, the user, to benefit from in the long run!
2. KYC rewards
As an identity verification platform, we believe that KYC is an important step to realize a fair and transparent web3 experience, safeguarding users from identity theft, money laundering or sybil attacks, and ensuring a safe environment for growth.
To incentivize users to exchange their data and add a layer of security to the ecosystem, we will distribute 50% of our rewards to users who choose to complete their KYC with Fractal ID. That means that you, as a user, will be rewarded for what is sometimes a mandatory step to join a platform or participate in an event, and then you will be all set to jump on opportunities when they arise.
KYC incentives are available for users who meet the following criteria:
- Approved for at least the Basic level of Fractal ID;
- Provided Fractal ID with their EVM wallet address.
What you need to do is click on this opt-in link to qualify.
Once you complete your KYC journey and opted in to the program, your rewards will start accumulating on our end and distributed to your EVM address on a monthly basis.
The earlier you opt in, the more rewards you can expect as the first round of distributions will start at the end of September 2022.
3. Development fund
As we are expanding, we want to encourage enthusiasts and developers to help us optimize our protocol code and construct the best experience for our users. We believe that those who help Fractal ID grow deserve a piece of the pie, therefore, we plan to distribute 15% of the total minted tokens to developers who contribute to Fractal ID. This will incentivize developers to join our community and work on expanding the protocol, and will also provide them with a share in Fractal ID’s success.
We’ll provide more details about the development of dApps in the coming month, but you can think of funding hackathon rewards, and bounties for contributors. However, if you want to explore directly what dApps can be built with our technology, or if you want to chat with our developers please join our Discord community or reach out to fractal-protocol-eng@fractal.id!
4. Staking Program
Saving the best for last, we’d like to introduce another passive income opportunity to FCL owners by offering rewards on the tokens they stake! Our Staking Program, which will be available on December 15, entails that 30% of the rewards distributed by Fractal ID will go to users who stake their FCL tokens for certain lock-in periods. Find more details on Fractal ID’s Staking Program here.
What’s next?
Now that you know what we have in store for the future, maximize your FCL rewards by installing Fractal ID Wallet to enable data capture, take the KYC journey with Fractal ID, join our open source community, and stake your earnings for a long-term investment.
Please note that at Fractal ID’s own and sole discretion, future changes can be made to the presented incentive mechanism as the product evolves. Join our Discord channel to be the first one to know about the upcoming changes in the future.