After reading the blog about the Initia VIP (Vested Interest Program), I felt a sense of resonance.
With the end of Rolllup infrastructure and the rise of AppChain, the Web3 industry has entered an era of block space surplus, and the supply economics pursued by the Ethereum community has become a bit outdated.
The effectiveness of the previous approach of focusing solely on the supply side, regardless of the quality of the project, and mindlessly motivating developers even if the project they developed had only single-digit users and no growth potential, has been falsified in reality.
Typical examples include Arbitrum and Starknet’s Grant Program, which have become a symbol of DAO governance corruption and a breeding ground for zombie dApps. As the world enters the new Trump era, the crypto industry is accelerating its maturity and is about to usher in real large-scale adoption of Web3. In this environment, the industry’s alignment has finally shifted from to CZ and to Vitalik to to consumers and to users.
The sooner the protocols/projects/developers realize this change, the more likely they will have a head start in the new era of large-scale adoption of Web3. As we all know, the Cosmos ecosystem is always one Epoch ahead of the Ethereum community, with Celesita, the modularization cycle, and Initia, the chain abstraction cycle.
The basic design principle of the Initia VIP program is to rebalance and align the rewards of ecological roles such as AppChain, governance nodes and users, and encourage them to participate in the consensus security and governance of L1 responsibly and consume block space in a benign manner. In terms of specific design, Initia pays tribute to BeraChain's token economic model and perfectly integrates the essence of the industry's two-cycle token economic design experience-Ve (3, 3) and escrow (native token).
Initia has changed the standard paradigm of PoS chain token economics. In addition to using esINST to reward governance nodes, esINST is directly rewarded to AppChain and end users. Initia has specially designed an esINST unlocking mechanism, which requires users to keep their VIP scores above a certain threshold to fully unlock, incentivizing them to continue to actively consume block space. Alternatively, users can stake the received esINST to L1's Enshrined liquidity pool to enhance the liquidity, interoperability and security of the entire Initia ecosystem.
Summarize
Initia wants its native token INST to have the standard currency status of ETH in the Ethereum ecosystem, and also wants to balance the interests and responsibilities of governance nodes, AppChain, and end users, while avoiding the independence of the Cosmos ecosystem and the misalignment of incentives in the Ethereum ecosystem.
