Bootstrapping a stable computation token

TL;DR

This paper presents a token model for Truebit that ensures stable, community-based computation on blockchain without external oracles, using a mintable token system and a governance layer for decentralization.

Contribution

It introduces a novel token model and governance framework for Truebit that stabilizes task pricing and promotes autonomous decentralization without relying on external entities.

Findings

Stable task pricing achieved without external oracles

Sustainable economics through mintable token format

Governance layer facilitates network decentralization

Abstract

We outline a token model for Truebit, a retrofitting, blockchain enhancement which enables secure, community-based computation. The model addresses the challenge of stable task pricing, as raised in the Truebit whitepaper, without appealing to external oracles, exchanges, or hierarchical nodes. The system's sustainable economics and fair market pricing derive from a mintable token format which leverages existing tokens for liquidity. Finally, we introduce a governance layer whose lifecycles culminates with permanent dissolution into utility tokens, thereby tending the network towards autonomous decentralization.