Vector bonds: dynamic consensual liquidity in DPoS blockchains

tl;dr: bonds which have dynamic liquidity and payout.

The idea for this post was inspired by a comment in the Polkadot whitepaper (PDF). As you will hopefully be aware of by now is that the upcoming Polkadot network will be Proof of Stake and consequently earning a block reward will require staking coins (“dots” in this case).

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In the whitepaper the value of the minimum holding period and the payout are static single values. My suggestion is to make both dynamic and to allow the values to be set by the market. The suggestion of a ‘vector bond’ is that you have a single address making multiple nominations to a validator at different levels of lock-in / return.

The word “vector” should probably be replaced by “array” but the former was the first that popped into my head, and sounds more pleasant on the ears, but the word “array” is more fitting from a technical accuracy point of view.

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Summary of the Polkadot ICO

tl;dr: the Polkadot fundraiser is done: 485,331 Eth was raised. On the final day the dollar value of 1 Eth was ~ $300.

New contributors will have to wait until the network launches if they wish to purchase dots. The developers have already started to work on the first working Proof of Concept.


The Web 3 Foundation announced the Polkadot DOT token pre-sale on their main website back in July; however, I can’t find the exact date of the announcement. Shortly afterwards I launched the Polkadot Market subreddit and more recently this website.

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