Source: Octant
It is the season of funding in the Web 3 space, and I'm sure you may have heard of Optimism, Arbitrium, and Polygon. However, I would like to introduce and onboard you to the Octant Ecosystem. By the end of this article, you should understand the basics of Octant, how staking on Octant works, and, more importantly, the governance and funding using Octant.
Understanding The Basic
Octant is a decentralized platform built on the Ethereum blockchain. Its focus is on enhancing Ethereum's scalability while improving user experience. It did this by creating a new infrastructure layer that would allow for faster and, effectively, cheaper transactions. The official currency in the Octant ecosystem is the $GLM token, which is used for almost all transactions.
Their key features include Sharding, which divides the blockchain into smaller fragments that enable parallel processing of transactions; Optimistic Rollup, which bundles multiple transactions into a single transaction, which would reduce fees and increase throughputs; and, most importantly, Octant has a mechanism that allocates a portion of staking rewards to fund public goods.
Staking on Octant
This is probably the most common aspect of octant that most people would like to explore. This section contains information on how to stake your GLM tokens.
Step 1: Purchase your $GLM tokens from any cryptocurrency exchange that lists it.
Step 2: Select a digital wallet, like Metamask or Trustwallet, with the Ethereum network and is compatible with Octant.
Step 3: On the Octant earn site, click the "connect wallet" button at the top right of the page, as seen in the image below.
Step 4: Click the "Lock $GLM" button to lock your token, as shown below.
Step 5: Specify the amount of $GLM token you want to stake (Preferably >100), as seen in the image above.
Step 6: Two transactions will be carried out in your wallet; confirm the transaction by signing it with your wallet.
Step 7: After confirming your transaction, your extension will show you the notification below:
Bonus step: Ensure that your dashboard reflects the transaction done.
With GLM, you'll vote in token-weighted polls to determine which public goods initiatives are funded. By guaranteeing the community a direct say in fund distribution, this democratic approach encourages openness and group decision-making.
Note: When your tokens are locked, that is when you stand a chance to earn rewards that are distributed periodically, an amount with is dependednt on the amount you staked and network opportunities.
Governance and Funding On Octant
In the Octant ecosystem, only individuals who have locked a minimum of 100 $GLM tokens can participate in governance and vote for their favorite project in the ecosystem. Hence, project funding comes from direct contributions, matching a portion of funds contributed by the user and allocating 5% of contact staking rewards.
Octant's unique feature is that it does not accept many projects. By keeping the accepted projects minimal, Octant ensures that the funds allocated are enough for public goods projects. The Octant funding model is impact-oriented, focusing on supporting projects that benefit from the Ethereum ecosystem.
Octant uses epochs as its governance process. It is innovative and cyclical and occurs over 90 days. In this 90-day period, staked and locked tokens accumulate ETH rewards. At the end of each epoch, individuals can collect or distribute their accumulated ETH to the various projects they choose as curated by the octant community.
Summary
in this article, you have understood the basics of the Octant ecosystem, how to stake your $GLM tokens, and the perks of staking your token. If you would love to participate in the Octant ecosystem, consider joining their Discord channel, give them a follow on X, and get yourself acquainted. You can review their documentation if you would love to deepen your knowledge.