Cosmos SDK


Tgrade is a IBC-enabled blockchain that allows users to select a specific set of governance regulations in order to participate in P2P financial transactions. Built through the Cosmos-SDK, Tgrade utilizes Proof-of-Engagement (PoE) to incentivize users, validators and community members to interact and contribute to the network. A fundamental part of PoE is the introduction of Engagement Points (EP) which are the incentive mechanism for collaboration and can be earned to increase users’ reputation.
Please reach out to [email protected] if you plan to stake more than 1 Million USD in TGD tokens.
Tgrade FAQs
What is protocol staking?
On a Proof of Stake blockchain, protocol staking is the act of depositing tokens in order to become a validator; that is, to participate in proposing and attesting to transaction blocks. Anyone with a minimum necessary coin balance can validate transactions and earn staking rewards on these blockchains.
What is the name of the asset being staked?
The native token on Tgrade is called TGD.
Where can I explore the network and create a Tgrade wallet?
Explorer: Wallet: Keplr
Which consensus mechanism does Tgrade use?
Tgrade is following a Proof of Engagement (PoE) consensus mechanism.
What is the Proof of Engagement (PoE) consensus mechanism?
Tgrade utilizes Proof of Engagement (PoE) to incentivize users and validators to engage within the network. A fundamental part of Proof of Engagement is the introduction of Engagement Rewards (ER) which are the incentive mechanism for collaboration and can be earned to increase users’ reputation. To learn more about PoE, click here.
How Proof of Engagement (PoE) differs from Proof of Stake (PoS)?
Proof of Engagement (PoE) is like Proof of Stake (PoS) but addresses some of the deficiencies behind it: specifically, PoS potentially leads to an over-centralization of power amongst validators and the lack of incentives for the wider community. The main difference between PoE and PoS is that PoE is built around collaboration, whereas PoS is more about cooperation.
In a cooperative ecosystem, there are the right incentives for each individual so that everyone is working towards their own personal goal. The pooling of these individuals’ efforts to a goal is what makes it cooperative. In a collaborative ecosystem, however, everyone is working together towards common goals and objectives so that the overall impact is greater than the individual contributions. The shared objectives and goals in securing a blockchain make collaboration more powerful than cooperation.
Why is it important to secure a blockchain using Proof of Engagement?
Proof of Engagement (PoE)’s collaborative model is more secure than Proof of Stake (PoS) because it incentives the community to actively work on making the whole ecosystem better by broadening the community yet ensuring its decentralization.
What are the Engagement Rewards (ER)?
What’s their purpose and how do they work?
ER are used in the calculation of the distribution of rewards and to incentive users’ engagement in the wider blockchain. ER are allocated by a self-sovereign, the Oversight Community (OC), and are determined by the OC through off-chain research, consensus building, and on-chain governance. To incentive continued engagement ER have a half-life; after 180 days they half in number to prompt users to continue their engagement and accrue ER.
What’s the Oversight Community? What’s its role and how does it operate?
The Oversight Community (OC) is the Tgrade self-sovereign entity responsible for collecting and sharing information about engagement activities within the ecosystem. OC’s members are responsible for verifying the identity and blockchain address of those engaging in the ecosystem. OC also considers the weighting of ER and the impact of the engagement on the community; it establishes consensus on what activities truly prove engagement and how many Engagement Points they should allocate to each. Since engagement is highly subjective and can’t follow a set of rules, the impact of engagement is discussed in the context of the wider community. It’s OC’s responsibility to communicate what engagement means yet gather feedback.
Who’s eligible for ER?
Anyone, not just validators, can earn ER through engagement in the wider blockchain. ER are recorded on-chain and are not transferrable.
How do I earn ER?
The best way is to engage with the community through the dedicated Discord channel by sharing ideas and joining the conversations. Here are some examples of engagement that will grant rewards: Validator who helps onboard other validators Developers are building dApps and tools to visualize smart contract interactions. Content creators: bloggers, vloggers, community managers, forum hero Dedicated Meetup organizers Users engaged in governance proposals If you have been entitled to ER you can submit a form to the Oversight Community (OC), this will act as a guide for the OC when allocating Engagement Points.
What’s the purpose of Engagement Points?
Engagement Points have two roles in Proof of Engagement (PoE): they represent part of the validator voting authority they are used in the distribution of tokens from the revenue pool which is funded by transaction fees and a portion of the block rewards.
The voting authority in Proof of Engagement is the sum of Engagement Points and Stake. The intent of the design to include Engagement Points was to incentivize both established and new validators to be engaged with the blockchain beyond running a node.
Why is it important to have validators engaged with the blockchain?
Validators are crucial to the security and development of a network. They are typically experts on security and can therefore share best practices to improve network security. Moreover, when actively engaged in the communities, the validator can significantly contribute to the network growth by evangelizing and promoting it to a wider audience. As a validator, Figment has experience operating critical internet infrastructure, resulting in unparalleled performance across our staking and application platforms. We are also deeply involved in the networks we support providing information on protocol developments, governance, and broader industry trends.
How are decisions about Tgrade made and executed?
Tgrade adopts a multi-level governance approach. There are 3 levels of governance: system Validators: they oversee security matters such as chain upgrades, pinning contracts, and migrating PoE contracts. All proposals at this level are handled by the validator-voting contract. No change can be applied without the approval of a supermajority of validators. Community Pool: these collect 5% of the block rewards and can only take the action of sending funds to an address. This is regulated by a special smart contract that points to a specific set of engagement point holders. This community pool is ultimately responsible for improving the chain and making sure funds are development driven. Oversight Community (OC): they are vetted supporters, aligned with Tgrade’s vision. The OC is responsible for setting the engagement points; it’s also the discretion of the OC to judge misconduct and therefore slashing validators who are misbehaving.
When do rewards get distributed?
Rewards are calculated every epoch and can be directed to multiple contracts. Rewards are typically split between validators, engagement point holders, and the community pool. On some occasions, a percentage of rewards can be granted to the Oversight Community (OC) and other governance committees to fund their work.
How is staking income disbursed?
Rewards are distributed automatically every epoch but must be explicitly withdrawn by users.
Does Tgrade auto-compound staking rewards?
Reward income is not automatically restaked; therefore, if you want to add rewards to your existing stake you’ll have to do manual compounding.
How long does it take to stake and unstake?
The unbonding period lasts 21 days.
Will I keep receiving rewards after I unbond?​
No. Once you unbond you stop receiving rewards.
Can my staked TGD be slashed (seized or destroyed)?
Yes, in case of slashing, the validator is removed from the engagement group through an OC governance proposal and is also removed from the active set. In this case, validators also miss rewards distribution.
What is the rate of new issuance (aka "annual inflation") for TGD?
How does the token supply change? Tgrade has a maximum inflation rate set at 6 million TGD per year. Tgrade only could half the collected fees; therefore, as transaction fees are collected, it deducts half the amount from the minted rewards. As fees are collected, the rewards increase, and inflation decrease. Example: If tx fees are 4 million TGD, the protocol would mint 1:1 4 million TGD in rewards. This would make a total of 8 million TGD distributed. This would continue up to 12 million TGD of fees per year, which leads to 0 inflation and 12 million TGD in block rewards.
What is the total supply of the TGD token?
The total supply is set at $100.11 million. Do I maintain custody of my TGD tokens? Who or what controls my staked token? Figment is non-custodial, which means we are never in control of your staking income and staked asset. We have partnerships with a number of top-in-class custodians: For inquiries, please contact [email protected]