OM3 tokenomics

Decentralized governance requires well-balanced incentive mechanisms that accu- rately model both positive and negative outcomes. In other words, the governing entities should be rewarded for good results and penalized for bad ones. The 0M3 token is designed to facilitate this through three main utilities:

1. Staking: Grants dAPI revenue and inflationary rewards.

2. Collateral: Backs insurance services that protect users from damages caused by dAPI malfunctions.

3. Governance: Grants direct representation in the OracleMesh DAO.

The staking utility provides a financial incentive for participating in OracleMesh and con- tributing to increase its revenue. The collateral utility has the participants share OracleMesh’s operational risk and incentivizes them to minimize it. Finally, the governance utility gives the participants the ultimate instrument to enact these incentives.

Note that it is critical for these three utilities to coincide. All governing entities must receive staking rewards for them to govern in a way that maximizes revenue. All governing entities must have their funds used as collateral for them to govern in a way that minimizes security risks. To this end, OracleMesh will have a single staking pool. Staking OM3 tokens in this pool will grant representation and staking rewards, but at the same time, the staked tokens will be used as collateral to pay out insurance claims as needed.

The initial issuance is 100,000,000, and additional issuance will be carried out later based on ecological construction.