As part of a series on “Recommendation Markets”, I want to propose a variation on bonding curves used in “Curation Markets” that allow for verification of curation. Only when verified, can the curators earn a tokenized reward.
A ‘Recommendation Market’ emphasises that a “Curation Market” is only there to produce signals, not the truth. In other words, the economic value produced from the curation serves only to provide a recommendation. In a “Recommendation Market”, some additional vetting process is applied to determine if the staked rankings are meaningful. It results in the protocol serving the users, not the users serving the protocol.
Projects like Ocean Protocol, DAOStack & Relevant use variant forms of this verification system, the core part being: there’s an additional vetting process to the staked, economic, curation game.
This article gives an example of how to reward curators through a token bonding curve, if, and only if they do curation work deemed useful.
A Graduating Token Bonding Curve.
If you are not familiar with bonding curves, there’s quite a few articles that explain it further:
The variation of the design is that you have two tokens in a bonding curve: one for the buy curve & one for the sell curve. A “buy” token that is bought from the curve needs to undergo a verification process to graduate to a “sell” token that can be sold. Only “sell” tokens can be sold to get back the collateral from the bonding curve. If you have a “buy” token, you have to participate in curation in order to get the token to be graduated to a “sell” token.
In other words: you can only sell back into the curve and get a reward from the collateral, if you have a token that has been verified and graduated.
Verifying & Graduating
In order to graduate a token, a user has to stake information to a piece of content in order to rank it...