RootstockCollective is the first DAO designed to recognize and reward builders and users of Rootstock, the leading and longest-standing Bitcoin sidechain.
RootstockCollective was formed to address a critical challenge faced by Bitcoin builders; value capture. Historically only Bitcoin miners and holders benefited from the Rootstock network’s growth. This changes today with the introduction of the RootstockCollective which aims to reward Bitcoin builders and their supporters.
This article explores how and why RootstockCollective was built, how each participant can be rewarded, and what the future holds.
What is RootstockCollective?
RootstockCollective is a one-of-a-kind DAO built on the Rootstock blockchain, the first and biggest Bitcoin sidechain.
Combining the security of Bitcoin with the programmability of Ethereum, Rootstock brings the best of both worlds.
RootstockCollective is a new addition to the
This is done by creating a self-sustaining growth cycle where:
- Builders are rewarded with RIF and RBTC for building novel solutions on top of Bitcoin and;
- Backers (i.e. stakers that support projects) are also rewarded with RIF and RBTC for supporting the builders of these projects and growing the ecosystem.
In a nutshell, RootstockCollective provides the mechanism for everyone to contribute, influence, and create value to the first and longest-standing Bitcoin sidechain.
Foundation on Rootstock Blockchain
The Rootstock blockchain is known to be the first and longest-lasting Bitcoin sidechain. It leverages Bitcoin's proof-of-work security model via
Additionally, Rootstock is EVM compatible, meaning that
In terms of the governance token, the
This approach allows members to utilize a token they are already familiar with, ensuring a seamless transition into governance roles. Additionally, it strengthens the community’s influence over the future direction of Rootstock, as the DAO can integrate other RIF-enabled protocols, such as RifOnChain and RIF Name Service (RNS), and direct ecosystem revenue to support community-led initiatives.
DAO Governance
RootstockCollective’s governance structure relies on the following principles and mechanisms:
Community-Led Decision-Making:
- RootstockCollective empowers its members to actively participate in decision-making processes, ensuring a decentralized approach.
- Members can propose, discuss, and vote on initiatives such as grant approvals, ecosystem development, and project funding.
On-Chain Governance and Operations:
- The governance framework utilizes the Rootstock blockchain's smart contracts to ensure transparency and accountability.
- Voting, proposal submissions, and reward distributions are executed on-chain, reducing the risk of manipulation and enhancing trust.
- All decisions, financial disbursements, and project milestones are also recorded and accessible on the blockchain, ensuring transparency.
Token-Based Participation:
- Governance is driven by a token model where the governance token is stRIF (the staked version of RIF), which is needed to submit or vote on proposals.
- Tokens ensure that stakeholders with a vested interest in the ecosystem have a say in its direction.
Rewards Management:
- RootstockCollective’s reward model was launched with the
Collective Rewards program which incentivizes contributions to the ecosystem from both builders and supporters (i.e. backers).
- Grants are issued based on the DAO members' votes, aligning funding decisions with community priorities.
- Active participants in governance processes may receive rewards or perks such as badges and voting boosters, motivating consistent involvement in DAO activities.
Collective Rewards: Rewarding Builders and Communities
The Collective Rewards program is designed to enable value capture and reward sharing between Builders and Backers. The Collective Rewards incentivize engagement, innovation, and fair competition, driving the decentralization and growth of the Rootstock ecosystem.
The program is designed to benefit builders and their supporters (backers) as follows:
For Builders
As an activated builder in the RootstockCollective ecosystem, you will benefit from 2 key angles:
- Building on the first and longest-running Bitcoin sidechain: The unparalleled security, ease of use due to the EVM compatibility, and the end-to-end dev stack of the Rootstock blockchain.
- Sustainable decentralized reward system: The Collective Rewards enable activated builders to get rewards and share with backers for their support, incentivizing backers and creating a sustainable growth cycle.
In short, the Collective Rewards allow you to build on the best Bitcoin sidechain while bringing the community to vote for your project, unlocking rewards in the form of Bitcoin and RIF for both builders and backers.
For Backers
Backers in the RootstockCollective ecosystem are RIF stakers who use their staked tokens (stRIF) to support specific builders.
RIF is a utility token in the Rootstock ecosystem that empowers users, developers, and builders to unlock the full potential of the Bitcoin ecosystem. This includes decentralized governance, stablecoins, and improved user experience.
On the other hand, stRIF, 1:1 pegged to RIF, is the governance token of RootstockCollective. stRIF tokens represent voting and backing power within the DAO. They enable token holders to partake in governance decisions like grant allocations and changes to the system.
The key advantage of becoming a backer is that backers earn rewards from activated builders who choose to share a percentage of their earnings. The backers’ power is derived from their stRIF token balance, which can be allocated to one or multiple builders in proportions, chosen by the backer.
For example:
- A builder earns 20% of the total rewards for a cycle.
- If the builder sets a Backer-Reward Percentage of 25%, 5% of the total rewards for that cycle go to their backers, with individual shares based on each backer’s allocated votes.
Moreover, the Collective Rewards offer backers the opportunity to:
- Earn rewards for supporting innovative projects.
- Actively contribute to the growth of the Rootstock ecosystem.
- Flexibly adjust backing allocations based on builder performance and strategy creating a fully decentralized democratic experience.
By supporting builders, backers not only earn rewards but also play a pivotal role in fostering innovation and sustaining the Rootstock ecosystem.
How to Get Started
What You’ll Need to Participate:
Get Started with RIF
RIF is a utility token designed to unlock more opportunities on Bitcoin through Rootstock.
When you stake your RIF tokens, you get a staked version of RIF called stRIF which is also pegged 1:1 and provides you with the right to vote, create and approve any modifications in the ecosystem, and be actively involved in the governance process.
The first step in participating in RootstockCollective would be to
RIF is available across a range of centralized and decentralized exchanges, along with meta-aggregators and cross-chain liquidity protocols, including:
- Centralized Exchanges: Binance, Gate.io, Mexc.com, and others.
- Decentralized Exchanges: SushiSwap, Changelly.
- On/Off Ramps: Lemon, Bit2Me, Mt Pelerin.
- Bridges: Symbiosis, Sovryn, Jumper.
To store RIF securely, users can use Rootstock-compatible wallets like MetaMask, Ledger, or Trezor, ensuring peace of mind for long-term holders.
Once you have RIF tokens, you can stake them to participate in governance through RootstockCollective.
Becoming a Builder
In order to qualify as a builder in the RootstockCollective ecosystem, a developer or team of developers has to be actively contributing to the development of Rootstock and then get approval to be whitelisted (activated) by the Rootstock community.
There is a simple framework to participate in the Collective Rewards as a builder, which consists of:
- Getting RIF
- Staking RIF
- Submitting your project to the community
- Getting approval from the community to become “activated”
- Setting a backer reward percentage that incentivizes community members to back you
- Claiming your rewards
Becoming a Backer
Backers are RIF stakers in the RootstockCollective ecosystem who choose to support certain “Activated Builders” with allocations and get a share of the builders’ rewards.
Becoming a backer is quite straightforward:
- Stake your RIF tokens to receive stRIF tokens.
- Use your stRIF tokens to vote for builders to get them activated in Collective Rewards;
- Use your stRIF tokens to back builders of your choice.
- Monitor and claim your rewards through the RootstockCollective dApp.
The Future of RootstockCollective DAO
The RootstockCollective DAO aims to build on collective governance models and community engagement so that Bitcoin DeFi reaches new heights.
So far, RootstockCollective laid a strong foundation for decentralized governance with:
- A
dedicated dApp for governance and participation and the first whitepaper release. - Independent security audits
- Over a $170,000 in RIF and $591,040 in RBTC distributed in grant waves.
- Launching the Collective Rewards program for all members of the DAO and its dedicated whitepaper.
According to the
DAOs on Bitcoin are here to stay, and it’s your time to join the revolution.