Heroglyphs - Incentives to transforming Ethereum validator dynamics - Glovin | Heroglyphs

hello I'm glovin from heroglyph I'm one of the co-authors of the heroglyph white paper yeah I would like to start talk uh the talk about um a very powerful Tool uh tool that amplifies our voice and propels our message into um the spotlight it's called memes and actually a lot of people thought we were doing a meme nfty process because we sold nfts obviously and these nfts were actually symbols for each chain um so it was like a cultural abstract of each chains and each ecosystems and the reason why I wanted to tap into this culture and those communities was because especially if we were trying to communicate a very specific message with a lot of people uh communities is very important and those communities were the biggest unit of the community in our whole ecosystem so that's why we wanted to tap into the culture and these nfts really helped us set the stage for what we wanted to talk about and the degeneracy and the speculation and all those joyful Vibes within the community actually helped our very serious topic to be more approachable to a broader audience so how it works um so if we view her from the lens of token launch most tokens are typically quickly launch through these three layer of funnels so on the launch phase it's about setting up the spage stage so this is where every tokens Journey starts um we craft a narrative uh we configure the parameters like total Supply like emission schedules and after the launch phase it enters the distribution phase so for Bitcoin uh it was mining through the miners and for most conventional tokens nowadays it's mostly air drops and points and on the exchange layer uh finally it's where the token finds the real world value uh it's where a token becomes something that can be traded so it can be in the form of decks CX bonding curves and even OTC so in heroglyph what we're trying to do is making a difference in the distribution layer so in heras once the token is launched uh the token is primarily uh distributed through the mining of complete validators and we also considered the to be the purest form of distribution so just as Satoshi Nakamoto the Creator himself of Bitcoin had to mine his own token and was primarily distributed through miners um the tokens that are launched in heroglyph that are mined through the mining of um complete validators on ethereum so it's somehow aen to the merge mining but it's on top of ethereum not only that uh with this new distribution layer uh we actually leave the the the the other two layers blank uh like a canvas for other artists and developers to come up and build on top so they can come up with their new narratives and new memes if you're an artist if you have a unique artwork with a creative narrative you can launch your own meme coin here and if you're a builder if you have a cool new idea for a cool bonding curve and exchange mechanism pump the fun especially if we're seeing when we're seeing a lot of deflationary mechanisms attached to those meme aspects uh it's a canvas for those kind of Villers to experiment those um uh Financial Primitives and so this coordination game the nft that we've saw back to the nft was about showcasing what could be built on top of heroglyph what kind of experiment is possible in the exchange layer um as well as to launch there so as I've covered in the beginning those nfts were symbols in representation of each chains and there are tokens that are linked to each nft so if you bought uh if there so the nft kabosu has a link token called kabosu as well so it has follows the same narrative and the same artwork um so that was like the narrative part of it and of course it's m through complete validators but with an additional criteria added on uh which is that the validators had to hold these nfts in order to Mint I mean mine the token that are linked to those nfts on the exchange layer with the profits of the nfts uh we didn't buy a sandwich with it uh 98% of those profits was used to provide single side liquidity against those tokens that are launched and mined through hogus validator so yeah uh the game was complex not a lot of people got it but we wanted to push the LI the the possibility to the extreme so that we can showcase everything that's possible so that we can encourage other Builders um to imagine what they can build on top and so yeah end users us we just have to enjoy the culture um with new narrative artists can launch a new token Builders can build an Innovative Financial um uh exchanges on top of it and if you're a pumped ontic you can launch your own token and more so to get into the details um so so graffiti it's the most important Concept in our mining process the whole mining thing is about graffiti I've seen a lot of graffiti in the city which I like it but anyways um to give you a little bit of context if you're a validator at E2 you get to access to various aspects of validation so you get to propose the block you get to atate and also you get to leave uh uh digital signature called graffiti so graffiti it's just like a Twitter biome if you're valid Ator um so the primary use case of um graffiti before heras was saying who validated this block or what kind of client that the validator have to use so it was pretty much like a Twitter bio but with heroglyph let's say I've launched a hero token when validator leaves hero the token ticker and the wall address he wants to mine the token to after he he he leaves those graffiti according to the syntax uh the token is mined and it's distributed to uh the valers every block according to the mission schedule that I have configured so that's it that's how the whole distribution layer works and the best part is that graffiti is just an extra data field so it has the potential to have lot of things built on top but it's just an extra data it's not processed so it does not exert your pressure on top of the base layer nor the validators to run the node so this is where uh we want to draw a clear line between ordinals inscriptions and herps is a lot of people actually consider us to be the ordinal or inscription of ethereum um partly right partly wrong uh the thing that I want to draw a very clear line is that so Bitcoin for Bitcoin uh they had a very important problem to be solved in the long term which is increase ing um the profitability of miners because they had to sustain sustainably incentivize those miners even after uh the mission schedule ended and how they did it with ordinals uh they spammed the network but which in turn uh made the block space valuable and increased the miners profitability so it was a great fit for uh Bitcoin where they were struggling to find a clear use case for their box baces but e theum were kind kind of at capacity so we're all always um always have more demand than the supply of the Box base so we did not want to exert any extra pressure on the base there uh while changing the game and the part of what I think is similar to orinal is that people were able to contribute to the ecosystem while them just enjoying the cultures so I'm not sure if that was the intention of uh the ordinal developers or not but what they did was letting people enjoy the culture while actually contributing to the ecosystem solving a very important uh problem in their ecosystem uh same for us what we're solving is this decentralizing validator Dynamics so to fully grasp what it is you first have to understand what they actually do what what do validators do um in a very high level overview they take 32 e and they run a validator so ideally we need a very broad group of complete validators individuals who serve both roles independently but uh with liquid scking providers um vast amount of e is aggregated to those liquid providers and is placed under the control of um few few node operators and that of course centralizes the power of E validation but I'm not saying that we have to take them all down Lio and all those liquid staking providers has contributed to the ET ecosystem it has lowered the entry barrier for the ones who are only able to contribute economically but it's just that we need a proper balance between um safety that is achieved with a bit of um efficiency that comes from centralization and the centralization so that's why we need to have more complete validators they are um independent validators who serve both roles so they don't rely on intermediaries that have the risk of consolidating the powers and there's a clear reason why we aren't taking actions why there aren't much like complete validators first it's really hard to realize the power it's something very vague you can't even touch it I like to think of problems uh with a 2X two metric one uh importance and another one urgency many people might understand that that this is an important matter but urgency might not be too apparent so cuz the problem is not knocking on their door tomorrow maybe not um today so it's really easy to turn a blind eye and sacrifice what we um don't see for what we momentarily gain and even if we come climb past the understanding HUD uh we have another problem that there is no economic incentive at all for being a complete validator so there's nothing exclusive for complete validator you just get the eel you just get the same MV profit exposure from liquis Sing providers but just with more technical complexities and a bit of mental illness so we need something exclusive to uh complete validators that has economic value so that um participating in the centralization does not only feel good but actually pays off so on the first problem obviously uh since we have the problem lined we already solved the problem like 50% so we can materialize this very abstract concept of power and privilege into something um that is concrete that we can touch if we can uh make this power dynamics visible we won't give it that easy so on the economic incentive side um it's it's about answering the question of how do we make this process of making ethereum decentralized not only necessary but desirable obviously more incentive economic or non-economic giving more incentive to become uh a complete validators giving more perks that is exclusive to being a compete validator so graffiti is actually the symbol for this realization so what so what we're doing is converting graffiti that was thought to be worthless and transforming into mining power that has uh that can actually create a value then people will realize what they're actually giving away and it also acts as an incentive so it's an incentive for people to reclaim the control that they've been given away without even recognizing so higher the token price High higher the value of tokens higher the value of the mining power and bigger the incentive that is exclusive to complete validators so this everything it was the uh context behind this diagram so it's like so if you look at petroleum refinement there are tens of thousands of byproducts they're mostly useless if you don't refine find it well it's same for ethereum validation so there are some values that clearly have economic Stakes but if you look the graffiti that has never been um thought that is um valuable is now refined with hieroglyphs to have a real value uh a real mining power to create a value and to incentivize more complete valers to come up and if you zoom out a little bit when the graffiti when theel uh write something on graffiti according to the syntax rule our transcoder reads all of those blocks all of those attestations and it actually triggers a smart contract action and in this case the smart contract action we're talking about is distribution of tokens but it can actually be anything so this is another area of experiment that we wanted um continue on like what what other smart contract actions could be triggered with the graffiti and the Hero Ghost Protocol so if not sure what it could be but if that smart contract action is something valuable and something that has value in it then it also works as an incentive that is exclusive to complete validators and the third problem lowering the entry Bearer there is a high entry Bearer in becoming a complete validator um not everyone has the technical capability of running and even starting a validator so there are actually amazing protocols who are already helping all those you have steakhous who uh helps you run a validator with your friends a very simple version of DVT rocket pool obviously you have mini pools uh stake wise it gives you liquid staking tokens um even if you're a a solo complete validator and that note obviously helps you running know so I personally consider them 200 Q teams so they're focusing on uh lowering the entry barrier for for everybody to join as a complete validator and removing opportunity cost for becoming a complete validator so while they focus on lowering the entry barrier side what we can focus on is continue to doing the 60 IQ play to only focus on the incentive site and to potentially collaborate with this team to effectively solve the problem so yeah this is our strategy um it's to package a very serious message into something that could something that could be hilarious something that could be uh irresistible something into a meme so it's not just about fun images and um it's it's more about a troan horse that really helps us spread our message in the most contagious way as possible if the talk was inspiring enough to make you want to build something on top of hero clipse I'm here until Thursday so feel free to H me up I'm really happy to have a chat thank [Applause] you any questions for glovin all right thank you Lovin