Staking

Staking is the process of locking cryptocurrency tokens to participate in blockchain-based activities and earn rewards. In HUMAN Protocol, staking is used to build trust, incentivize quality work, and ensure fairness within the network. Both oracle operators and workers use staking to enhance their roles and opportunities within the system.

Staking in HUMAN Protocol

HUMAN Protocol is designed to decentralize and automate the coordination of tasks, such as labeling data for machine learning. To ensure trust and efficiency, staking plays a critical role for both oracle operators and workers.

Staking for Oracle Operators

Oracle operators process and validate tasks or jobs submitted to the network. They ensure that the tasks are completed accurately and workers are fairly compensated.

How Staking Works for Oracle Operators?

• Trust Mechanism: Oracle operators stake HMT tokens to prove their reliability and commitment to the network.

• Eligibility: Only operators who stake tokens are elected to process jobs and tasks.

• Earnings: When they successfully complete task verification, they receive a processing fee as compensation.

• Penalty for Misbehavior: If an oracle operator acts dishonestly or inaccurately, a portion or all of their staked tokens may be slashed. This discourages poor performance and ensures integrity.

Staking acts as a filter, ensuring that only serious and trustworthy operators handle job processing, keeping the network secure and reliable.

Staking for Workers

Workers in Human Protocol perform tasks such as data labeling or image classification.

How Staking Works for Workers?

Workers can choose to stake HMT tokens to unlock various benefits, including:

• Early Access to Jobs: Workers who stake can get early access to new tasks, allowing them to select jobs before others.

• Priority for Higher-Paying Tasks: Staking can qualify workers for premium tasks that offer higher compensation.

• Enhanced Reputation: Workers who stake demonstrate reliability and seriousness, helping them build a better reputation within the network.

• Access to Exclusive Tasks: Staking can grant access to specialized or priority jobs that require higher levels of trust and skill.

Why Staking Matters in Human Protocol

• Builds Trust: Staking helps establish trust among participants by ensuring they have something at stake, which reduces the likelihood of bad behavior.

• Rewards Commitment: Both oracle operators and workers who commit through staking are rewarded for their reliability and performance.

• Improves Efficiency: Staking prioritizes dedicated participants, ensuring tasks are processed and completed quickly and accurately.

• Ensures Fairness: The staking system creates a fair ecosystem where commitment and quality are recognized and rewarded.