How can I earn ICP using DFINITY’s governance system?

A key feature of the Internet computer platform is the Network Neural System (NNS), an open algorithmic governance system that oversees the network and token economy

⚠️Note: Currently NNS has just been put into use for 100 hours, there may be bugs, please ensure that the fee is sufficient and operate with caution!

The previous article described how to log in to the wallet using the official launch of Internet Identity, which has now been officially launched on the Internet Computer to govern the proposal.

A key feature of the Internet Computer platform is the Network Neural System (NNS), an open algorithmic governance system that oversees the network and token economy, thus making it possible to build DeFi, dapps, open Internet services and enterprise systems that operate at mega-scale.

How can I earn ICP using DFINITY's governance system?

Backing up identities on multiple devices

A biometric device or YubiKe must be used to back up identities, so it is recommended that users all have a YubiKe.

The community is developing a wallet that will allow the creation of ICP accounts with metamask signatures and the export of private keys and helpers for existing ICP accounts.

  1. First create an Internet identity as described in “Getting Started with ICP’s Wallet and Governance Software! Create an Internet identity.
  2. If the cell phone registration is successful, you need to back up your computer and go to http://identity.ic0.app/ on your computer, we recommend using chrome browser.
  3. Click “Already registered but using a new device?”, enter your existing ID, click “Continue”, and then insert the Then insert YubiKey on your computer for verification.
How can I earn ICP using DFINITY's governance system?

3、This time a proof link will be output, copy this link into your mobile browser to open it, or open it by scanning the QR code, and then click to confirm to complete the proof.

How can I earn ICP using DFINITY's governance system?

Neuron mechanism

Lock ICP to create neurons to vote directly on proposals or set neurons to automatically follow votes. After completing the vote, if the proposal passes, the neuron can accumulate Maturity to earn a reward.

Rewards are calculated based on “Maturity”, which is the expected value of the gain. When a threshold is reached, new neurons are “produced” and the number of ICPs locked in the new neuron = the number of ICPs in the old neuron * Maturity.

For example, if a neuron with 100 ICPs locked has accumulated 10% “maturity” after several votes, sending a “produce new neuron” transaction will result in a new neuron with 10 ICPs locked. You can unlock it immediately to get 10 ICPs to sell, or continue to lock it to accumulate votes, and the new neuron will automatically follow the old neuron, which is equivalent to re-voting.

ICPs are issued in increments of 10% of the total in the first year, dropping to 5% after 8 years, mainly through neuron rewards.

The ICP is locked with a “dissolution delay”, which is how long before you can get it back in a lump sum. There is no way to get it out early unless it expires, so be careful when setting it up. Voting rights are related to the number of locked ICPs, and the “dissolve delay” will increase voting rights up to 8 years, giving you 1 times more votes, i.e. 100 ICPs with a “dissolve delay” of 8 years will give you 200 votes. This is equivalent to leveraging mining. You can only vote if you set a “dissolution delay” of more than six months.

If your neuron is “Locked”, it will grow “older” according to the time, and the older it is, the higher the bonus it brings. The older it is, the higher the bonus it brings, up to a maximum of 4 years and 1.25 times the bonus. If you choose “Dissolved”, then there is no bonus.

The bonus is calculated for each proposal based on the percentage of valid votes you have taken in the proposal, and is calculated in reverse chronological order based on the total number of incremental posts in a year. That means the more nodes participate in the voting, the lower the reward; the higher the rate of passing the proposal you favor, the higher the reward.

You can also follow the voting status of other people and set up automatic follow votes. If we make an analogy, NNS is like a governance mining, and you follow different KOLs, the rate of return may be different, both high and low.

So projects around how to improve NNS governance gains are to be expected in the future DFINITY ecosystem.

How can I earn ICP using DFINITY's governance system?

Using Neuron

  1. Open the link http://nns.ic0.app/ and log in through the Internet identity you just used.
  2. Go to the “NEURONS” board and click on “Stake Neuron”.
How can I earn ICP using DFINITY's governance system?

2、Enter the amount of locked ICP, and then set the length of lock, note that you must ensure that the fee is sufficient, and lock more than six months to participate in voting for rewards. After setting, click “Updata Delay” and click “Yes, I’m sure” to finish locking after checking the confirmation page.

How can I earn ICP using DFINITY's governance system?

3、Enter the neuron settings, you can set who’s ticket to follow automatically under different proposal types, click “Enter Following” to choose, do not choose to follow the official by default.

How can I earn ICP using DFINITY's governance system?
  1. DFINITY’s proposals currently have various types of proposals, you can elect your approved voter for each type of proposal, and then follow him, and then you will automatically vote, and you will accumulate rewards when the vote passes, and no money will be deducted if it does not pass.

The current types include.

NeuronManagement: Neurons can be set to follow other neurons, allowing it to manage those followed neurons.

ExchangeRate: “Real-time” information about the value of the ICP market, a prophecy machine run by governance that allows the NNS to adjust the percentage of ICPs converted to GAS token cycles to keep the computational cost relatively stable.

NetworkEconomics: Proposals for managing network economics, such as adjusting the rewards paid to node operators.

Governance: all proposals for managing governance itself, meta-governance proposals.

NodeAdmin: Proposals to manage the nodes, including but not limited to upgrading or configuring the operating system, upgrades, etc.

ParticipantManagement: Proposals for managing nodes into and out of the network.

SubnetManagement: Proposals for managing subnets, such as creating new subnets, adding and removing subnet nodes, and splitting subnets.

NetworkCanisterManagement: Proposal to install and upgrade the “system” of the network, such as upgrading the NNS.

NodeProviderRewards: Proposals for rewarding nodes.

  1. After creation, you can click into the neuron to see the details. The first column is the lock status of the neuron, you can click “Increase Dissolve Delay” to increase the dissolve delay and lock it longer to increase the governance; click “Start Unlock” to unlock it. Click “Start Unlock” to unlock the node and start the unlocking countdown, but there is no “age bonus” at this time.
How can I earn ICP using DFINITY's governance system?

6、You can also choose to vote directly by going to “VOTING”, opening the proposal details with the status of “OPEN”, and selecting “For Adopt” or “Reject Rejact” to vote.

How can I earn ICP using DFINITY's governance system?

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-can-i-earn-icp-using-dfinitys-governance-system/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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