Staking Rewards - Research Methodology Development - Milestone 1 (#2484)

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Co-authored-by: Keegan | W3F <[email protected]>

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Co-authored-by: Keegan | W3F <[email protected]>

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Co-authored-by: Sebastian Müller <[email protected]>

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Co-authored-by: David Hawig <[email protected]>
Co-authored-by: Keegan | W3F <[email protected]>
Co-authored-by: Sebastian Müller <[email protected]>

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applications/staking_rewards.md

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+# Validator Performance - Research & Methodology Development
+
+- **Team Name:** Staking Rewards
+- **Payment Address:** Payment Details will be sent to [email protected] privately.
+- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 2
+
+### Overview
+
+Staking Rewards proposes a comprehensive research initiative to enhance Polkadot’s staking ecosystem by developing a robust and unbiased methodology to rank validators and improve staking accessibility. This proposal also includes deploying intuitive staking tools through Stake App and executing a marketing campaign targeting over 250,000 crypto-focused users. The initiative aims to simplify staking, boost participation, and increase the visibility of Polkadot’s staking features and liquid staking solutions.
+
+
+### Project Details
+
+### Milestone 1 Research & Methodology Development
+
+**Objective:** Develop a comprehensive, data-driven framework to rank validators for the Polkadot network, which will form the foundation for selecting the Top 16 Decentralized Nodes (DNs) from the Polkadot Decentralized Nodes Program for the Default Nomination Pool in the Stake App.
+
+
+
+
+
+**Milestone 2: Staging and Testing**
+
+**Objective:** Integrate Stake App with initial ranking implementation in a staging environment and gather feedback.
+
+
+**Milestone 3: Stake App Deployment**
+
+**Objective:** Deploy the fully-featured Stake App to Polkadot users.
+
+
+**Milestone 4:** Marketing Push
+
+**Objective:** Execute a targeted marketing campaign to amplify Polkadot staking.
+
+
+### Ecosystem Fit
+
+Polkadot's staking ecosystem underpins its security, scalability, and governance. Selecting validators for the Decentralized Nodes Pool (DN Pool) requires balancing performance, decentralization, and fairness, yet current methods may lack transparency or fail to capture critical metrics. This project will establish a data-driven ranking methodology, supported by advanced tools and outreach, to empower both individual stakers and the network as a whole.
+
+
+## Team :busts_in_silhouette:
+
+### Team members
+
+- Founders: Mirko Schmiedl, Jannik Schmiedl
+- Team: Staking Rewards is a trusted platform for staking insights, serving over 150,000 unique monthly users worldwide. With a focus on transparency and accessibility, the team has extensive experience in providing staking-related tools, analytics, and educational content. The team combines expertise in blockchain development, data science, and marketing to deliver impactful solutions.
+
+
+### Contact
+
+- **Contact Name:** Tobias Jung, Mirko Schmiedl
+- **Contact Email:** [email protected], [email protected] 
+- **Website:** https://www.stakingrewards.com
+
+
+### Legal Structure
+
+- **Registered Address:** Schützengasse 7, 9000 St. Gallen, Switzerland
+
+- **Registered Legal Entity:** Finrate AG
+
+
+### Team's experience
+
+At StakingRewards.com, we are proud of our software development expertise, which has been key to building a platform that delivers accurate and comprehensive staking data. Our team specializes in creating complex systems that integrate seamlessly with a wide range of blockchain protocols, enabling real-time aggregation and analysis of staking rewards across networks. By focusing on clean, modular code and scalable architecture, we ensure that our platform remains robust and adaptable to the rapidly evolving blockchain ecosystem. Our efforts include developing intuitive user interfaces, APIs for institutional clients, and advanced data visualization tools, all designed to simplify the staking process. Backed by prominent investors like Galaxy Digital and CoinShares, we remain committed to advancing the platform’s capabilities and maintaining our position as a trusted resource for staking information.
+
+
+### Team Code Repos
+
+GitHub: https://github.com/stakingrewards
+Product: https://www.stakingrewards.com/
+
+
+### Team LinkedIn Profiles (if available)
+
+https://www.linkedin.com/company/stakingrewards/people/
+
+
+## Development Status :open_book:
+
+Currently Staking Rewards has developed a dedicated Asset Page featuring Polkadot Validators:
+https://www.stakingrewards.com/asset/polkadot
+
+
+## Development Roadmap :nut_and_bolt:
+
+Milestone 1 is the only Research Development Milestone. For future milestones, it needs to be evaluated if further research development is needed. Currently this is not planned.
+
+
+### Overview
+
+- **Total Estimated Duration:** 2 months
+- **Full-Time Equivalent (FTE):**  2 FTE
+- **Total Costs:** 15.000 USD
+- **DOT %:** 50 %
+
+**Deliverables for Milestone 1:**
+
+| Number  | Deliverable | Specification |
+| ------- | ---------- | ------------- |
+| 0a.     | Copyright and Licenses | CC BY 4.0 |
+| 1.     | Article    | We will publish an **article**/workshop that explains what was done/achieved as part of the grant. The article will include: |
+| 1a.       |            | - **Metrics:** Performance & Reliability (uptime, block production efficiency, latency, slash history), Staking & Rewards (commission rate, APY, minimum stake), Reputation & Trust (identity verification, slash-free period, reputation), Decentralization & Inclusion (geographical distribution, operator diversity), Technical Setup (hardware specs, client version), Engagement & Transparency (governance participation, validator communication), Financial & Risk (stake distribution, oversaturation risk, fee stability). |
+| 1b.       |            | - **Data Sources:** Analysis of on-chain and off-chain data sources. |
+| 1c.        |            | - **Validator Scoring:** Preliminary scoring model for ranking validators based on weighted metrics. |
+| 1d.        |            | - **DN Selection:** A ranked list of the **Top 16 Decentralized Nodes (DNs)** for inclusion in the Default Nomination Pool. |
+| 2.        | Research Report | Results published in the form of a research report. |
+
+
+## Future Plans
+Staking Rewards aims to integrate and push Polkadot Staking via the Stake App.
+
+As part of the Stake App, Staking Rewards will:
+
+    ●   Set up a Nomination Pool as the default staking option, delegating funds to the Top 16 Decentralized Nodes (DNs) selected from Polkadot's Decentralized Nodes Program. This ensures high-performance, reliable, and decentralized validator selection.
+    ●   Support direct nomination of individual validators or liquid staking tokens (LSTs) for advanced users.
+
+The Top 16 DNs and the validator ranking used for both the Nomination Pool and direct nomination options will be determined during Research Milestone 1, using the metrics and scoring model developed during this phase.
+
+Funding of this development will be determined after successful completion of Milestone 1.
+
+
+## Additional Information :heavy_plus_sign:
+
+**How did you hear about the Grants Program?** The Web3 Foundation Team suggested applying here.