title: "Certification Tokenomics" order: 4
Certification Tokenomics
The Cadastry Certifiers system is powered by the $CD token, which serves as the primary means of value exchange and incentivization within the ecosystem.
Staking Requirements
To participate as a Cadastry Certifier, individuals or organizations must stake $CD tokens as collateral. The staking requirements vary based on the Certifier's tier:
- Tier 1 Certifiers: 100,000 $CD
- Tier 2 Certifiers: 50,000 $CD
- Tier 3 Certifiers: 10,000 $CD
Staked tokens are locked for a minimum period (e.g., 6 months) and are subject to slashing in case of misbehavior or fraudulent activities.
Certification Fees
Cadastry Certifiers earn fees for validating and certifying metadata documents. The fees are paid in $CD tokens and are distributed as follows:
- 70% of the fee goes to the Certifier who validated the document
- 30% of the fee is distributed to all the upper-tier Certifiers involved in authorizing and managing the Certifier (20% to Tier 1 and 10% to Tier 2 if the Certifier is Tier 3)
Rewards for Staking
In addition to certification fees, Cadastry Certifiers receive staking rewards in CD tokens staked by the Certifier and the duration of the staking period.
Network Growth
The growth of the Cadastry Certifiers network is driven by the expansion of Tier 2 and Tier 3 Certifiers, which is facilitated by Tier 1 Certifiers.
Growth Process
- Tier 1 Certifiers identify potential Tier 2 and Tier 3 Certifiers within their industry
- Candidates are vetted based on their expertise, reputation, and professional background
- Selected candidates undergo training on Cadastry's certification process and standards
- Upon successful completion of training, candidates are authorized as Tier 2 or Tier 3 Certifiers
Growth Incentives
To incentivize network growth, Cadastry offers additional rewards to Tier 1 Certifiers who successfully onboard organizations in their industry to use the Cadastry ecosystem for managing metadata documents:
- For each organization onboarded, the Tier 1 Certifier receives a percentage of the $CD tokens staked by the organization
- This reward is held in escrow for a specified period (e.g., 1 year) to ensure the continued participation of the onboarded organization
As more organizations adopt the Cadastry platform, the demand for certification services will increase, leading to greater earning potential for Certifiers and a more robust, trustworthy ecosystem overall.
Potential Clarifications:
- Explain how the $CD token will be distributed initially (e.g., token sale, airdrops, mining)
- Clarify the process for adjusting staking requirements and certification fees as the network grows
- Provide examples of misbehavior or fraudulent activities that could lead to slashing of staked tokens
- Explain how the staking rewards are calculated and distributed
- Discuss the long-term vision for the $CD token and its potential for value appreciation
- Clarify the criteria used to evaluate Tier 1 Certifiers' performance in onboarding new organizations