TREE Series (Twenty-Eight): DOR Consensus Reward Mechanism
In the Treehouse protocol, DOR serves as a decentralized interest rate benchmark. Its consensus mechanism is not only a technical safeguard but also an incentive-driven ecological cycle. Simply put, DOR relies on panel members submitting interest rate prediction data, which is summarized into a reliable curve through consensus, and the rewards are the key to encouraging active participation.
When panel members submit data, they need to pledge TREE tokens as collateral. If their predictions are accurate, they can share in the query fees from the protocol. These fees come from the TREE paid by users who utilize DOR data, with part of it directly converted into rewards. The higher the accuracy, the more rewards, creating a positive feedback loop that encourages members to continuously optimize their models and avoid random submissions. At the same time, delegators can also entrust tAssets to members, sharing reward distributions, further bridging the connection between the community and the protocol.
Operators play a coordinating role, ensuring smooth data flow, and they can also benefit from consensus rewards. TREE here is not just a currency but also a lubricant for consensus. Through DAO governance, the community can adjust reward ratios, such as increasing incentives for highly accurate members or establishing penalty mechanisms to prevent cheating. This not only maintains the reliability of DOR but also makes the entire ecosystem healthier.
Think about it, this reward design makes DOR less susceptible to manipulation than traditional benchmark interest rates, instead driven by community power. By holding TREE, you are essentially investing in the future of this consensus. In the future, as DOR expands to more chains, the reward pool will be larger, and the sense of participation will be stronger. In summary, DOR's consensus rewards are not just about dividing money; it is about building a fair and sustainable DeFi interest rate world.
