Subvisual is excited to present this proposal in response to ShutterDAO’s RFP for developing a Keyper Incentive Mechanism and Delegated Staking system. Leveraging our 12 years of experience in blockchain technology and a profound commitment to creating innovative, user-centered products, we propose solutions that align perfectly with Shutter’s objectives of enhancing security, ensuring fair markets, and promoting censorship resistance.
Our proposal outlines a strategic approach to develop and implement robust systems that:
Incentivize Keypers through a transparent and efficient reward mechanism, ensuring their active and continued engagement in managing the network’s encryption keys.
Empower SHU token holders with a Delegated Staking system, enabling them to contribute to network security and participate more actively in governance decisions.
Subvisual’s proposed solution is designed to integrate seamlessly with ShutterDAO’s existing infrastructure while supporting its core mission to mitigate malicious MEV and uphold the integrity of transactions across Ethereum and L2 networks. We are committed to delivering a solution that not only meets the technical specifications of the RFP but also enhances the overall resilience and functionality of the Shutter network.
Subvisual: pioneering blockchain innovation and product excellence
We are Subvisual, a venture studio with a rich 12-year heritage in advancing blockchain technology, building companies and nurturing founders’ ideas into usable web3 products.
Our core team comprises senior developers, product designers and business managers, each bringing deep expertise and a passion for solving complex technological challenges.
Known for our technical acumen and product-centric approach, we have successfully co-founded and scaled ventures like Utrust, which was acquired and evolved into xMoney under our technical leadership.
Mission alignment
At Subvisual, we don’t just build; we create products that resonate with users and stand the test of time through backend sophistication or intuitive frontend designs.
Our commitment to quality and innovation makes us the ideal candidate to develop Sutter DAO’s Keyper Incentive Mechanism and Delegated Staking System.
We understand the stakes involved in DeFi and are here to deliver a robust, user-centric solution that will drive ShutterDAO’s mission forward.
ShutterDAO’s emphasis on community involvement in governance and the technical roadmap suggest a need for solutions that advance security and ensure inclusivity and fairness in DAO operations. Subvisual’s approach will incorporate these elements by providing a robust, scalable solution tailored to enhance user participation and stakeholder engagement, thus driving ShutterDAO’s mission to create a fairer and more secure digital economy.
Previous relevant experience:
- Sandclock: from idea to launch - user-friendly platform for earning yield. The idea is that yield can be sent to different people, donated, or automatically invested into a different financial product, such as DCA. For this to work seamlessly, Subvisual had to build a custom contract from the ground up and a front end to go along with it:
Since the user target for the project was a mainstream audience, we conducted generative interviews to simplify the flows and user testing to validate our options.
- Fractal.ID - we helped Fractal (a decentralized identification solution with +1 million users and more than 250 projects) create a new mechanism for data ownership and identity validation by building a new way to generate cryptographically verifiable credentials for each user in their KYC product. We integrated with their existing infrastructure and extended it with a state-of-the-art data wallet Chrome extension that interacts with their newly launched blockchain, built in Rust and Substrate, which we helped design and implement.
- Subvisual helped building the smart contracts that were audited.
Objectives
- Design Incentive Mechanism: Develop a fair and transparent incentive mechanism for Keypers, ensuring network security and participation.
- Implement Delegated Staking: Allow stakeholders to delegate their assets to Keypers, improving network decentralization and stakeholder engagement.
- Enhance User Experience: Provide a seamless user experience for delegators and Keypers through a well-designed interface.
- Ensure Security and Compliance: Implement robust security measures while complying with Shutter Network’s governance structure.
Solution Outline
1. Keyper Incentive mechanism
Reward Structure and Distribution
- Multi-tiered reward system: incentivizes both the quantity of SHU staked and the duration of the stake.
- Performance-Based Rewards: Additional rewards for Keypers who perform exceptionally well, considering criteria like uptime, response time, security incidents, and reliability.
- Epoch-Based Distribution: Rewards distributed at the end of each epoch to ensure fairness and transparency.
Keyper Incentive Contract
This smart contract will manage the distribution of rewards to Keypers based on their participation and performance within the network. It will interact with the Staking and Delegated Staking Contracts to fetch necessary data for reward calculations.
- Functions:
calculateRewards(address user): Computes the rewards for a user based on their staked amount, duration of stake, and performance metrics.distributeRewards(): Distributes the calculated rewards at the end of each predefined period (e.g., monthly or quarterly).claimRewards(address user): Allows users to claim their accrued rewards. This function ensures that rewards are only accessible after they have been calculated and announced.
Performance tracking Contract
This contract interacts with the core Incentive Contract to provide real-time data on Keyper performance, which is essential for calculating performance-based rewards.
- Functions:
logActivity(address keyper, uint256 activityType, uint256 amount): Logs different types of activities performed by a Keyper, such as transaction validations or participation in consensus processes.getPerformanceData(address keyper): Retrieves the performance data for a Keyper, which is used to adjust their rewards based on their effectiveness and reliability.
2. Delegated Staking mechanism
- Direct and Pool-Based Delegation Options: Provide both direct delegation to chosen Keypers and an option to participate in a managed pool, increasing flexibility for SHU token holders.
- Dynamic Delegation: Allow SHU holders to choose their Keypers dynamically, with the ability to switch Keypers based on performance and trust metrics.
- Security Features for Stakeholders: Include minimum delegation periods to protect stakeholders’ interests and stabilize the staking environment.
- Reward Mechanism: Implement a proportional reward distribution system where delegators receive rewards based on their staked amount and the performance of their selected Keypers.
- Governance Integration: Ensure that the staking contract can be updated or modified based on proposals and decisions made through ShutterDAO’s governance processes.
Delegated Staking Contract
This core contract will manage all aspects of staking, including token deposits, withdrawals, and delegation mechanisms.
Smart contract framework:
-
Staking Contract: This contract will handle the direct staking of SHU tokens by token holders. It will enable users to stake and unstake their tokens and view their current stakes and accrued rewards.
- Functions:
stake(uint256 amount): Allows users to stake SHU tokens.unstake(uint256 amount): Allows users to withdraw staked SHU tokens after fulfilling any required lock-up period.claimRewards(): Users claim their staking rewards.
- Functions:
-
Delegated Staking Contract: Manages the delegation of staking power from token holders to Keypers. This contract will allow users to delegate their staked SHU to specific Keypers, enhancing network security and participation.
- Functions:
delegate(address keyper, uint256 amount): Delegates a portion of the user’s staked SHU to a selected Keyper.undelegate(address keyper, uint256 amount): Reverses the delegation process, returning staked SHU to the user’s control.collectDelegatorRewards(): Allows users to collect rewards earned from delegated staking.
- Functions:
Scalability considerations: Subvisual recognizes the importance of scalability to ensure the robust performance of ShutterDAO’s systems as user numbers and transaction volumes grow.
3. Frontend
UI
- Dashboard: Create a central dashboard that provides users with an overview of their staking activities, including current stakes, historical rewards, and performance metrics of Keypers they’ve delegated to. The dashboard should be easy to navigate and visually intuitive.
- Interactive Charts and Graphs: Implement interactive elements such as charts and graphs to visually represent data like earnings over time, staking durations, and comparisons of Keyper performance. This visual data presentation helps users make informed decisions.
UX considerations
- Simplicity and Clarity: Keep the interface clean and uncluttered. Use tooltips, modal dialogs, and help icons to explain more complex terms or features, ensuring that both novice and experienced users can easily understand and navigate the platform.
- Efficient Navigation: Design a logical flow that guides users smoothly from one action to the next. Incorporate clear, well-labeled menus and buttons for actions like staking, unstaking, delegating, and claiming rewards.
- User Input Validation: Implement immediate input validation for staking actions to prevent errors and provide users with instant feedback, improving the overall interaction quality.
- Quick Access Features: Include features such as a “favorites” system for frequently accessed Keypers, quick staking options, and customizable views to enhance user efficiency and satisfaction.
Testing and Feedback
- User Testing: Conduct extensive user testing with a diverse group of users to gather feedback on the UI/UX design and functionality. Use this feedback to refine and improve the interface.
- Iterative Design: Adopt an iterative design process, where the frontend is continuously updated and improved based on user feedback and technological advancements.
Integration with Backend Systems
- API Integration: Develop a robust API integration layer that allows the frontend to communicate efficiently with the smart contracts and backend systems. This layer should handle tasks like fetching data, submitting transactions, and receiving updates about the blockchain state.
- Error Handling: Implement comprehensive error handling that can gracefully manage and report issues from the backend, such as transaction failures or connectivity issues.
Project Timeline
Total Duration: 8 weeks (detailed breakdown)
Week 1: Planning and Architecture
- Activities: Define project scope, develop technical specifications, and design system architecture.
- Deliverables: Project plan, architecture diagrams.
Weeks 2-3: SC Development
- Activities: Coding of smart contracts for staking, delegating, and rewards; development of core functionalities.
- Deliverables: Initial versions of smart contracts and backend APIs.
Weeks 4-5: UI/UX Design and Integration
- Activities: Design and develop the user interface; integrate frontend with backend systems.
- Deliverables: Functional user interface, integrated system testing.
Week 6: Testnet Deployment and Testing
- Objective: Test all systems in a controlled testnet environment.
- Activities:
- Deploy all smart contracts to a testnet.
- Conduct thorough testing including unit and integration tests.
- Deliverables: Tested systems with documented outcomes and fixes applied.
Weeks 7-8: Testing, Auditing, and Launch Preparation
- Activities: Conduct thorough testing (unit, integration, user acceptance); perform internal audits; prepare for deployment.
- Deliverables: Tested and audited systems, deployment on testnet/mainnet.
Team Composition and Costs:
- Project Manager: Part-time (half-day)
- 8 weeks x 20 hours/week x $60/hour = $9,600
- Senior Developers: Full-time
- 2 x 8 weeks x 40 hours/week x $75/hour = $48,000
Total Personnel Costs:
- $9,600 (Project Manager) + $48,000 (Senior Developers) = $57,600
Total Requested USDC: $57,600 USDC (Prioritizing essential development activities and efficient resource management)
Token Compensation: 60,000 SHU - these tokens are proposed as part of the compensation to align the development team’s interests with the long-term success and commitment to the project.
