Derivatives Protocol PRISM Launches Validator On Terra
Terra-based derivatives protocol PRISM announced the launch of the PRISM Protocol validator on Terra.
The validator will promote network decentralization, make whole any slashing, redistribute MEV, and receive validating revenue and claims PRISM.
In addition to the usual reasons for starting a validator, some use cases that are specifically relevant to the protocol.
- Promote decentralization of the network: in the future the principal tokens created by the protocol will be used for proxy governance. The votes from these principal tokens can also be used to decide the validator’s votes.
- Slashing insurance: Many staking derivatives do not have mechanisms to deal with slashing of the underlying validators. cLUNA has an existing mechanism but this can be augmented with profits from the validator to make-whole any slashing.
- MEV redistribution: With the dawn of protocols such as Skip, validators may be able to monetise “good MEV”. It is only right that these benefits go to delegators and cLUNA holders.
- Validating revenue: this can be a sustainable way of contributing to funding protocol development and avoid the need to raise external funds by allocating excessive amounts of tokens to third parties such as VCs.
In addition, the protocol publishes details on how to earn an airdrop in Prism V2, which will include early supporters of the validator.
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