Understanding RVZ tokenomics

At revewz our goal is to design a system where the most useful reviews increase in credibility at the detriment of fake or low quality reviews. We want the reviewers and the readers to benefit positively by participating in the ecosystem created by the RVZ token.

In this post, we’ll dive in a bit deeper to understand exactly how the tokenomics of RVZ helps align the incentive of all parties to a common goal of producing useful reviews.

The moderator plays a key role in defining quality reviews. Hence we have decided to allocate multiple moderators who are selected at random of each review. The protocol randomly selects 5 moderators,(who have already staked some RVZ) to submit independent feedback on the legitimacy and usefulness of any review that’s submitted. Once 3 out of the 5 moderators approve any review, the reviewer and moderators are paid out. There’s a time limit of 2 hours or when 4 out of 5 moderators have responded the review is accepted.

“The protocol incentivizes anon moderators to come in consensus with each other”

Each review has a set reward defined by the RVZ rewards smart contract. 10% of each review reward is given out to moderators. In case moderators are able to agree on ‘incorrect’ reviews, the entire reward bounty is shared between all the moderators. In case a moderator or group of moderators are found to falsify their claims, anyone can open a dispute against the moderators and the moderators are slashed of all their staked RVZ as penalty.

RVZ token reward is a function of how many tokens a moderator has staked and for how long. A moderator has a higher probability of being selected based on the amount of RVZ staked and the duration of staking.

The RVZ protocol aims to lock at least 34% of the token supply in staking as a way to protect the system from attacks. Stakers will enjoy APY on their staked tokens irrespective of how much RVZ is staked, however the APY decreases drastically when over 34% of the tokens are staked.