Bitcoin’s continuous price surge is catalyzing mainstream adoption, attracting more developers and BTC holders to find new ways to join this revolution. A key player driving this adoption is the recently launched RootstockCollective, utilizing Rootstock’s security and capability to champion Bitcoin’s growth.
By staking RIF in RootstockCollective, participants tap into a unique intersection of Bitcoin’s security and DeFi functionality in a framework that incentivizes builders and their backers to strengthen the Bitcoin ecosystem beyond mere speculation.
Before we dive in, let’s do a TLDR of RootstockCollective and the general utility of the RIF token in case you missed the earlier updates.
What is RootstockCollective?
RootstockCollective, a DAO built on top of Rootstock, has been designed to ensure the community has a bigger role in decisions affecting the ecosystem’s future and growth. Its mission is to bring Bitcoin to the next billion users by enabling all ecosystem players (e.g., users, institutions, developers) to:
- Become participants in the Rootstock economy.
- Participate in decision-making through a governance mechanism.
- Be further incentivized to contribute and/or build with Rootstock.
Stake RIF to Become Part of the RootstockCollective
RIF is at the beating heart of RootstockCollective, with staked tokens (stRIF) used to gain voting rights, influence proposals, and participate in governance. The staked version of RIF (stRIF) is pegged 1:1 to RIF, ensuring holders retain value while unlocking governance rights.
stRIF forms the foundation of RootstockCollective’s governance model, empowering the community to vote on key decisions that shape the ecosystem. These include:
- Grant Approvals: Funding innovative projects and builders that extend Rootstock’s functionality and usability.
- Treasury Allocations: Determining how resources are distributed to support the ecosystem’s needs and priorities.
- Governance Updates: Making adjustments to governance parameters, such as quorum thresholds and voting timelocks, to ensure the DAO remains responsive and effective.
RootstockCollective provides grants and Collective Rewards, creating a powerful incentive structure that benefits both builders and their backers. Let’s explore how this system works.
Collective Rewards: Incentivizing Builders and Backers
One of the most exciting aspects of staking RIF is the Collective Rewards program, which creates a reward-sharing model for both builders and their backers. This program ensures that builders and their backers are both being rewarded. This is how it works:
- For Builders: Builders submit grant proposals to the DAO. Once approved, they receive funding directly from the Grants treasury or through the Collective Rewards program.
- For Backers: stRIF holders can allocate their voting power to back specific builders. In return, builders can set a Backer-Reward Percentage to share a portion of their rewards with backers, creating a mutually beneficial relationship.
Reward sharing in action
Let’s look at an example to see how the system works in practice:
- A builder, MoneyOnChain, submits a grant proposal to the DAO, which is approved.
- MoneyOnChain sets a Backer-Reward Percentage of 50%.
- Under this arrangement, 50% of MoC’s rewards is distributed to the project’s backers. Individual shares are allocated based on the amount of stRIF each backer committed to the builder.
What next?
RootstockCollective is designed to recognize and reward builders and RIF holders who drive Rootstock’s growth. By staking RIF, participants can actively contribute, influence decisions, and create value for Bitcoin’s first and longest-standing Layer 2 ecosystem.
Whether you’re a builder with ideas to grow the Bitcoin ecosystem, or you’re excited about the future of Bitcoin and eager to support innovation, RootstockCollective offers a unique way to participate in Bitcoin’s leading and longest-lasting Bitcoin sidechain.
Take the next step, and stake your RIF to join the RootstockCollective today.