IoTeX Adopts SBTs to Reward DAO Governance Proposal Voters 


IoTeX has become one of the first blockchain networks to introduce the use of Soulbound Tokens (SBT) to reward their community members for participating in DAO Governance proposal voting. The adoption of this mechanism was yesterday as it distributed 123 SBTs to the same number of community members who voted in favor of IoTeX’s 13th Improvement Proposal (IIP-13) vote to support ether (ETH) liquid staking derivatives.Community members staked more than 141 million IOTX (approximately $3.5 million) in favor of the network’s IIP-13 to increase the IOTX staking ratio to enhance network security by expanding the number of validators that process transactions and maintain the blockchain.The proposal, voted in by 97% in favor, included natively adding support to represent staking buckets as non-fungible tokens so that liquid staking protocols can manage stakes through smart contracts. 


That allows developers to launch liquid-staking decentralized applications quickly. It also potentially increases the staking ratio – improving the network’s use case for developers and contributing to the value proposition.IoTeX CEO and Co-Founder Raullen Chai told Blockchain Reporter in an exclusive interview that this was yet another step forward in his team’s commitment to continue as Decentralized Physical Infrastructure Networks (DePIN) infrastructure providers. It follows the recent launch of W3bstream, the world’s first off-chain compute framework for smart devices and real-world data.“We decided to start using SBTs because of their uniqueness and utility,” said Chai. “SBTs are a unique type of digital asset that shares some similarities with non-fungible tokens (NFTs). While NFTs represent property or assets with some monetary value, SBTs represent a person’s credentials and reputation.So, what are SBTs?Vitalik Buterin, one of Ethereum’s founders, revealed his SBT concept in January 2022 when he told journalists that they are the future of Ethereum and Web3.SBTs have the potential to be highly valuable in Web3 networks, as they can be used as a reputation indicator instead of relying on money-centric frameworks. For instance, in the current system, a lender would verify a borrower’s bank account balances, credit scores, and repayment history to offer an undercollateralized loan. However, with SBTs representing a person’s credentials, reputation can act as collateral to get an undercollateralized loan.The lender can verify a borrower’s reputation via their interactions with the community, such as trophies earned from any blockchain network’s Governance Rewards program. 


These trophies visually represent a member’s on-chain activity, which can now be sufficient security for an undercollateralized loan.Most DAOs assign voting power based on the number of tokens a member holds. However, DAOs issuing SBTs could prioritize reputation over tokens owned by a member. Additionally, third-party protocols can utilize SBTs to facilitate DAO governance voting and airdrops, among other use cases.The reputation can be verified via a member’s interactions with the community, making it more difficult for bad actors to control most of the governance tokens and disrupting the network for their gain (known as a Sybil attack).SBTs can also serve as a digital verification solution for crypto exchange customers that have completed Know Your Customer (KYC) requirements. Security and more decentralization 


“The primary motivation behind IIP-13 is improved security and further decentralization of the IoTeX blockchain,” Chai explained. With the deployment of this feature, builders can quickly launch their liquid staking dApps, such as Lido and Rocket Pool, on the IoTex network.Liquid staking refers to the exchange of staked ether for tokenized versions of the second-largest cryptocurrency that can be used in Decentralized Finance (DeFi) apps. Uses range from tokens as collateral for loans or margin to trading or earning yield. Staking on the IoTeX blockchain is currently done directly on the network without connecting to smart contracts for support.“We firmly believe that giving our IoTeX community members SBTs for voting will compel more people to participate in greater numbers in governance proposals moving forward,” Chai concluded. 


Source : [IoTeX Adopts SBTs to Reward DAO Governance Proposal Voters ]( undefined - 100+blockchainreporter / March 31, 2023

Join our 70k+
tribe of Akters

Have any questions?

Check our Q&A

About the AKTIO coin

Benefit fully from our ecosystem

What’s new in the App?

We’re adding new features

Customer support

+353 1 574 7382

+39 06 4525 6900

Opening hours:

Monday to Friday: 9am - 5pm CET




AKT Academy

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata ICO Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


Automata Pay Ltd, Reg number 12208424 and incorporated in the United Kingdom is the registered agent of Modulr FS Limited, a company registered in England with company number 09897919, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata Pay Europe Limited, Reg number 69028 and incorporated in Ireland is the registered agent of Modulr FS Europe Limited, a company registered in Ireland with company number 638002, authorised and regulated by the Central Bank of Ireland as an Electronic Money Institution (Institution Code C191242). Traditional currency is safeguarded as e-money in accordance with our regulatory obligations. Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata ICO Limited, Reg number 690280 and incorporated in Ireland has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS. It is important to note that a registration as a VASP is a registration for Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) purposes only. While Automata ICO Limited does have certain financial crime control obligations under this registration, cryptoasset services remain largely unregulated. The Financial Ombudsman Service or the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Automata ICO Limited.