# Proof of Flow - Token Staking Game

**URL:** <https://research.allo.capital/t/proof-of-flow-token-staking-game/89>\
**Category:** Allo Builds & Tools\
**Created:** [February 4, 2025, 4:14am UTC](https://research.allo.capital/t/proof-of-flow-token-staking-game/89 "2025-02-04T04:14:18Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![owocki](https://yyz2.discourse-cdn.com/flex036/user_avatar/research.allo.capital/owocki/32/1_2.png) [@owocki](https://research.allo.capital/u/owocki)\
**Post date:** [February 4, 2025, 4:14am UTC](https://research.allo.capital/t/proof-of-flow-token-staking-game/89/1 "2025-02-04T04:14:18Z")

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# Proof of Flow - Token Staking Game

## TLDR

- **Staking Game for Funding Infra:** Token holders stake on projects (e.g., retro funding, quadratic funding) to signal collective intelligence and earn rewards.
- **Rewards & Incentives:** Stakers earn inflationary token rewards + fee revenue; projects receive staking support; badgeholders distribute rewards.
- **Simple MVP, Expandable Design:** Uses pre-audited staking contracts, launches on Mainnet, integrates with Carl’s Simple Grants tool, with future expansions like trend tracking, AI insights, and multi-token staking.

# Why

- Lock up tokens
- Allowing the community to signal what they care about, creating a collective intelligence about what the community cares about. Which will support the [path to a 10x return](https://research.allo.capital/t/what-does-the-path-to-a-10x-return-look-like-for-allo-capital/72) for Allo..

# What

Allow holders to stake tokens on projects (e.g., retro funding, quadratic funding, deep funding, etc).

Why would people want to stake tokens?

1. The UI in the token drop flow will heavily encourage it.
2. They get rewards based on staking outcomes. Two types of rewards:  
&
3. Inflationary token rewards
4. Distribution of fee revenue from staked projects.

# Personas

1. token holder - browse projects, can stake token on them in cart checkout style experience. Gets rewards for doing so.
2. Project maintainer - can register their project with the system to get token Rewards
3. Badgeholder - Someone elected by Rena/Kevin to reward projects every epoch.

# Pages.

## token holder

1. Browse projects.
2. [Independent] Add project to cart, checkout. Checkout = stake
3. [In receive flow] Stake on project upon completion of airdrop flow.
4. View Rewards
5. Unstake

## Project

1. Create Project
2. View Project
3. View Project staking status
4. Solicit stakers

## Administrator

1. Simplest possible build

2. Adding more complexity on top of it

3. Badgeholder

4. Vote

5. General Public

6. View Leaderboard

7. View Rewards

# Architecture

- Recommended to use Tally Staking contracts as they are pre-audited and secure. [GitHub - withtally/staker](https://github.com/withtally/staker)
- Launch on Mainnet. With plans to bridge to L2s later.
- Built on top of Carls Simple Grants tool.
- Need to decide how to make the data model queryable. Indexer v2?

# Comms

1. Explain the above why/what/how(mechanism) in a landing page + video.

2. Why:

3. What:

4. How:

# Eventually - stuff that might go in a v2

1. Daily Quests for people to do

2. Delegate your token scouting to someone else  
1. Or perhaps replacing voting delegations altogether with scout game delegations

3. Integration into Allo.expert, to get trend data about which mechanisms are hot.

4. Integration into infiniteregen.ai, to get opinions on builds from AI swarms

5. More impact-metrics-based voting.

6. Email notifications

7. Social cards for twitter

8. Quests/RFPs - we can tell people what they should be building.

9. NFT Rewards for the best scouts

10. Support projects in their token launch straight fomr scout game.

11. Do we want to enable USDC/DAI/ETH steaking on each project? Or bringing in other tokens?

12. locked Allo bonus curve

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**Author:** ![cryptowanderer](https://avatars.discourse-cdn.com/v4/letter/c/ecb155/32.png) [@cryptowanderer](https://research.allo.capital/u/cryptowanderer)\
**Post date:** [February 6, 2025, 7:10am UTC](https://research.allo.capital/t/proof-of-flow-token-staking-game/89/2 "2025-02-06T07:10:37Z")

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Interesting stuff.

**Things I Like**

It’s great to think through multiple layers of the design: from contracts to UI to narrative. This serves as a checks & balances approach which hones each aspect as you filter it through the others.

In particular, the integrations with existing projects that could help (a) keep it secure and (b) get Allo more widely distributed are smart.

**Things I Dislike**

1. Inflationary tokens suck. [Here is the problem](https://www.youtube.com/watch?v=YtFOxNbmD38). The exact mechanism is not described here, so deeper criticism is not possible.
2. Having an Administrator is patently bad design, making a mockery of the D in DAO.
  1. Same thing applies to “Badgeholder - Someone elected by Rena/Kevin to reward projects every epoch”.

3. How does fee revenue actually occur and get distributed? No detail on that.
4. The strongest signal of what I care about is actually spending money, not locking it up. The two actions have vastly different psychological profiles.

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**Author:** ![owocki](https://yyz2.discourse-cdn.com/flex036/user_avatar/research.allo.capital/owocki/32/1_2.png) [@owocki](https://research.allo.capital/u/owocki)\
**Post date:** [February 6, 2025, 2:30pm UTC](https://research.allo.capital/t/proof-of-flow-token-staking-game/89/3 "2025-02-06T14:30:13Z")

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> [@cryptowanderer](#):
>
> - Inflationary tokens suck. [Here is the problem](https://www.youtube.com/watch?v=YtFOxNbmD38). The exact mechanism is not described here, so deeper criticism is not possible.

the goal would be to have proof of flow be revenue driven. but you’re right inflationary rewards may be useful to bootstrap the platform of the usage.

> [@cryptowanderer](#):
>
> - How does fee revenue actually occur and get distributed? No detail on that.

gitcoin did $1.1m in rev on $10.6m in platform volume in 2024. extrapolating this to other funding platforms that we might ihnvest in, lets assume 5-10% “take rate” on funding infra. as allo invests in these dapps, the future revenue (or tokens from those apps) could flow back to allo + its stakers.

> [@cryptowanderer](#):
>
> 1. The strongest signal of what I care about is actually spending money, not locking it up. The two actions have vastly different psychological profiles.

this is a great point; i wonder if we should directly allow people to spend tokens for shares of revenue in these projects in proof of flow

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<div class="post-metadata">

**Author:** ![owocki](https://yyz2.discourse-cdn.com/flex036/user_avatar/research.allo.capital/owocki/32/1_2.png) [@owocki](https://research.allo.capital/u/owocki)\
**Post date:** [February 10, 2025, 5:45pm UTC](https://research.allo.capital/t/proof-of-flow-token-staking-game/89/4 "2025-02-10T17:45:30Z")

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ori from mechanism institute pointed out to me [https://ethos.markets/](https://ethos.markets/) - a tool for betting on the reputation of influential accounts. something like this could be comiplementary to staking. or even replace it
