Earning SECOIN
SECOIN, the native token of the SecureSECO ecosystem, can be earned through several means:
Mining
Miners have the opportunity to claim SECOIN in proportion to the hashes they've successfully mined. Additionally, they have the flexibility to decide the distribution ratio between SECOIN and SECOREP.
Mining reward pool
The mining reward pool operates in the following manner: when a miner successfully mines hashes, they can claim these hashes by requesting a proof from the server and submitting that proof to the smart contract. In return, the miner receives a portion of the mining reward pool proportional to the number of new hashes they submit. This portion is a fraction ranging from 0 to 1. The purpose of this approach is to prevent rapid depletion of the mining reward pool. The funding for the mining reward pool is generated through queries to the SearchSECO database.
The calculation for the payout is as follows:
- For 1 hash:
(1 - 0.99) = 1% - For 2 hashes:
(1 - 0.99*0.99) = 1.99% - For 3 hashes:
(1 - 0.99*0.99*0.99) = 2.9701% - and so on...
This calculation can be generalized using the function:
(1 - payoutFraction^numHashes)
To further control the rate of depletion in the reserve, there is another adjustable parameter called the hash devaluation factor. The number of hashes is divided by this factor to restrict its growth.
The formula becomes:
(1 - payoutFraction^(numHashes/hashDevaluationFactor))
Finally, this fraction is multiplied by the current amount of tokens in the mining reward pool/reserve to determine the specific number of coins that will be paid out to the miner:
numTokensInPool * (1 - payoutFraction^(numHashes/hashDevaluationFactor))
Verification reward
Upon successful verification, users are eligible to claim a specific amount of SECOIN. Notably, this reward can be claimed independently for each provider that the user verifies with. The Verification Guide provides a detailed walkthrough of the verification process and how to claim the reward.
Verification reward pool
The verification reward pool, similar to the mining reward pool, is a designated portion of the treasury specifically allocated for one-time verification rewards. However, there are significant differences between the two pools. While the mining reward pool is funded through queries to the SearchSECO project, the verification rewards are entirely funded by donors, notably Slinger Jansen. Additionally, unlike mining rewards, the verification rewards remain constant and are not influenced by external factors such as the current token balance in the pool or the reward multiplier. Consequently, the verification reward pool simply transfers SECOIN tokens from the pool to the user whenever they claim their rewards.
The reason for maintaining constant verification rewards lies in discouraging users from delaying their reward claims. If the verification rewards were to increase similar to mining rewards or daily claimable rewards, it would incentivize users to postpone claiming their rewards in anticipation of higher token amounts. By offering a fixed reward amount, users become eligible for the same number of tokens every time they verify, regardless of the timing of their verification or reward claim.
Augmented Bonding Curve (ABC)
Users can acquire SECOIN through the Augmented Bonding Curve mechanism, by swapping their DAI tokens for SECOIN. Please refer to our ABC page for more information.
ABC swap guide
Navigate to the ABC swap page
Navigate to the ABC swap page on the SecureSECO DAO website using the link below. Always make sure you are on the official SecureSECO DAO website (https://dao.secureseco.org (opens in a new tab)) before signing any transactions. We will never ask for your seed phrase or private keys.
Connect your wallet
First, you need to connect your wallet to the DAO. This can be done using Metamask or a variety of other wallets. Don't have a wallet? Create one by following the steps here. You don't have to be a member of the DAO or be verified to use this swap.
Select the token to swap
Decide if you want to buy or sell SECOIN. By default, you will be buying SECOIN in exchange for DAI. If you want to sell SECOIN instead, press the button with the arrows in the middle of the two input fields. This will change the order of the two tokens, and you will be selling SECOIN in exchange for DAI.
Make sure you have enough tokens
If you want to buy SECOIN, you have to have DAI. You can obtain DAI swapping any other token using tools such as Uniswap (opens in a new tab). Make sure you buy DAI on the Polygon mainnet.
Are you a developer? If you are testing the swap functionality on the Mumbai testnet, you need to use Wrapped MATIC (WMATIC) instead of DAI, because DAI is not available on the Mumbai testnet.
Enter the amount
Enter the amount of tokens you want to swap in the top input field. Under the icon of each of the two tokens, you can see your current balance of that token. If you want to swap all of your available tokens, you can click the "Max" button, shown next to your current balance of the token on top.
A summary of the transaction will be displayed below the input fields in an accordion that you can open by clicking it. The amount of tokens you will receive is calculated using the Augmented Bonding Curve, and is displayed in the summary under the label "Expected".
Approve the transaction
If you've not swapped before, or if you've approved only a limited amount before, you will have to approve the spending cap of your DAI or SECOIN tokens to be able to swap. A spending cap refers the maximum amount of tokens your wallet provider will let you spend. If you don't see the approve button, you have already approved enough tokens, and can safely skip this step.
Click the "Approve" button to get a prompt from your wallet provider to set your spending cap for the token you are selling. In Metamask, you can use the "Use default" (see picture below) button to set your spending limit to the maximum amount possible, which will avoid the need to approve again in the future. If you do not want to approve the maximum amount possible, you can set a spending limit manually. When you're satisfied with your spending cap, go ahead and continue. You will have to confirm a transaction to set your new spending cap. After the transaction has been confirmed, the "Approve" button will disappear and you can continue with the next step.
Use default spending limit if you don't want to approve ever again, if you get a warning, you can ignore it, or set a lower spending limit.
Set the slippage
The slippage is the maximum amount of tokens you are willing to lose due to price fluctuations. If the price of SECOIN changes by more than the slippage (negatively), the transaction will be reverted and all of the tokens you tried to swap will be returned to you.
To set the slippage, click the settings button in the top right of the modal. If you are not sure what to set the slippage to, set it to 1%. If you are swapping a large amount of tokens, you may want to set it to a lower value, like 0.1%.
Swap
Click the "Swap" button to swap your tokens. You will receive a prompt from your wallet provider to sign the transaction. Once the transaction is confirmed, you will have received your tokens.
Liquidity pool
There currently is not a liquidity pool for SECOIN. However, this functionality is planned for the future.
The liquidity pool serves as another avenue for SECOIN acquisition. Users can directly swap tokens in the liquidity pool for SECOIN or earn SECOIN by contributing liquidity to the pool.
DAO treasury withdrawal
DAO members hold the right to propose a withdrawal of SECOIN from the treasury. For instance, this can be employed to generate reward payouts upon bounty completion. Currently, there's no explicit functionality for creating bounty-specific proposals. However, members can adopt a DIY approach by initiating a standard proposal to see if the DAO is interested in the bounty, and once it's achieved, follow up with a proposal for treasury withdrawal.