$PRIMIS UTILITY

1. Staking Mechanism for Server Operators

Staking $PRIMIS

Holders of $Primis tokens can stake their tokens to become server operators. Staking acts as a guarantee of proper execution and server availability.

Two Ways to Stake Your $PRIMIS

• Self-Managed Operation: If you have the skills and meet the minimum required $PRIMIS amount (TBD), you can run your own server operator. There should ideally be no limit to the number of operators to enhance decentralization.

• Delegated Staking: If you are unable to meet the above conditions, we offer a delegated proof-of-stake (dPOS) system, similar to what is used in the Cosmos ecosystem. An operator will allow you to stake with them, taking a commission for the service. For example, the commission on ATOM is 5%.

This approach combines the best of both PoS and dPOS systems.

• Delegation System: Inspired by the Cosmos system, this staking could have a delegate system.

• Priority in Game Routing: Servers with a higher amount of staked tokens could have priority in routing game requests, increasing their chances of rewards.

• Infrastructure Costs: Over time, projects using Primis servers will need to support infrastructure costs as protocol inflation decreases. Similar to Bitcoin miners, protocol inflation will reduce, and server usage fees will replace inflation.

2. Slashing (Penalties) to Maintain Service Quality

Slashing Conditions

• Downtime: If a server is offline more than the tolerated threshold (e.g., less than 95% uptime over a given period), a portion of the staked tokens will be burned.

• Poor Performance: If response time or service quality falls below a certain standard, similar penalties will apply.

• Exploitation: If a server operator uses their role to gain an unfair advantage in games built on Primis, they will face severe slashing and potential ejection.

3. Linking Staking to Primis Governance

• Staked Tokens: When you stake your tokens, you receive staked $PRIMIS (skPRIMIS) 1:1, representing your staked amount.

• Governance Participation: SkPRIMIS can be deposited into the Primis DAO staking to gain governance rights.

• Incentives for Locking: SkPRIMIS staked for governance follows a veToken-like model with a curved yield.

  • Boosted Staking: The longest-term lock (1, 2, 3, 4 years) in governance offers the highest yield multiplier.

  • Early Withdrawal Penalty: If a locker wants liquidity before the lock period expires, they can withdraw, but a portion of their $PRIMIS will be burned proportional to the unexecuted lock period. For example, withdrawing after 70 days of a 100-day lock results in a 30% burn.

4. Enhancing DAO Engagement and Value for Contributors

• Participation Score System: Active participation in governance (proposing changes, creating events in the Realms, activity in the governance forum, etc.) will boost yields more than merely locking tokens, encouraging meaningful engagement.