Giving to a worthy cause through a donation warms the heart. Often, these acts are out of compassion, from empathy and a true desire for those in need to wrestle their way out of trouble. 

By 2017, and just 10 years after a global crisis, over $405 billion were donated by Americans towards charity. And regardless of their financial situations, it is estimated that over 73 percent of all Americans continue to contribute regardless of the Coronavirus pandemic.

 A Gallup study found that even though the number of adults who have donated to charitable organizations fell in 2019—apparently because of financial difficulties caused by the pandemic and consequent lockdowns to stem its spread, Americans continue to volunteer time and finances for poverty alleviation and other economic activities.

What if there was a different way of doing things, especially rewarding development in the open-source software community. That is, of ensuring sustainability and continuity of OSS activities that contribute towards economic development, empowerment, and even wealth creation? 

Cognizant of the fact that the total “economic activities” within a particular zone are built up of activities, a new blockchain project called the Dev Protocol now seeks to evaluate various activities that have not received proper economic evaluation to realize their autonomous distribution and sustainability via peer-to-peer (P2P) trading and incentivization through rewards. 

What is the Dev Protocol?

The Dev protocol developed on the Ethereum blockchain produces value (by introducing an aspect of profit) from otherwise free activities through a property system. 

The protocol monetizes any open-assets such as Open Source Software (OSS), Open Access, and Creative Commons by staking-technology. 

This way, say you are a software developer with a functional dApp. To generate income, all you have to do is to upload the dApp to the Dev protocol. If there are users who download your program, you will earn depending on how they use your dApp. Rewards will be based on downloads, staking period, and inflation rate on top of other variables like the total number of assets in the market, those in the Dev Protocol, and the number of mines per block. The more downloads, the more the rewards for the staker.

To make this possible, the Dev protocol has a developed marketplace with staking and a reward system, all of which are core features needed to capture and capitalize value created through activities. 

The rewards received by a user depends on the value of the property (activity). As per Dev’s description, “if staking is done on a property that a user owns, a market reward will be added based on the total value staked.”

Working towards Sustainability

Dev development team describes their project as money designed for OSS due to their vibrant token model that features a marketplace, staking, and a reward distribution system.  

Subsequently, by basing their business model on the rewarding of open assets, individual activities are enhanced and the economy revitalized. 

Created by a team based in Japan, the Dev protocol is a middle-ware that is open source and available for public scrutiny to sustain the creator’s activities. 

By fairly evaluating any activity and assigning value, even projects which are often undervalued but contributing immensely for social good like open assets or OSS can remain sustainable. This way, it is better to contribute towards Dev protocol—thanks to its sustainability, that to donating money often towards a charitable cause. 

Overly, the team aims to build a sustainable system incorporating an inflation model where eventually, the total value stake will surpass the activities of donation which have been taking place through legal tender.

To kick-start the process, initial support starts at staking. Staking, unlike the traditional method of spending money, enables a user to lockup value for a certain period to bulwark the system in exchange for rewards. 

The more and the longer one stakes, the more the rewards and it is the team’s view that staking is a more sustainable way of offering monetary support to open assets.

These are the Three Main Features of the Dev Protocol

The overall design of the Dev protocol is as follows:

  1. First, there is mining where “Proof of OSS Power” is utilized for consensus. For prove, a user must prove activity that is subsequently used as mining power. Upon the submission of this mining power, an open asset is valued and a user rewarded for activity. To date, over 1,583,327 DEV has been mined by OSS developers who in turn received over $70k as rewards.
  2. Second, there is a staking feature where supporters can earn staking rewards further enhancing the mining power of OSS developers. This feature is more like financial support from third parties where value is created for stakers as an incentive. Only through staking is the activity of a user sustainable and secured. On the other hand, users receiver value at zero real cost. Combined, this creates profit for a property—an open asset—that was initially registered for free. When a supporter locks DEV, he/she can transact within the Dev protocol. In May 2020, the team announced that it was developing a new product specifically designed for staking. It will enable users to select which projects to stake their DEV on depending on the strength of the OSS. Other than staking, there is a withdrawal option for stakers, cancellation of staking, and more.
  3. Third, underpinning governance is open-source and is automatically and continuously enhanced by the protocol’s participants. Users, upon compliance with the laid down rules, can generate new open asset markets or even propose new policies—which are updated depending on prevailing circumstances. 

The Team

Based in Japan, the Dev Protocol team is led by Hara Mayumi, the CEO at FRAME00, INC.; Hiroyuki (Tanaka) Hara—a programmer and the CTO at FRAME00; Akira Taniguchi; and Mariko M—the project’s CTO.

Notably, Mayumi has been in the valuation business since 2017 when she co-founded FRAME00.

Tokenomics and Token Distribution

DEV, which is the Dev Protocol native currency, is an ERC-20 token. 

Details about its distribution are also scarce as the team wants users to first get a gist of how their staking model works. 

Still, as a primer, this DEV is a utility token that typically has the following cycle with the Dev protocol ecosystem:

  • DEV is issued by a property owner or active participant and undergoes inflation creating value
  • A user (this can a downloader say if the property was dApp)—in exchange for utility, stakes his DEV for the active participant
  • The more the property is staked on, the more the active participant (the property owner) can issue, and the more valuable it becomes.
  • Once the staking period lapses or the user cancels his staking, the property owner withdraws his rewards and the staking amount. The amount received depends on DEV’s inflation rate—which is decided by the community. At the moment, the lock-down is 1.5 minutes but will change once more DEV is locked in their ecosystem.

Staking of DEV is the main feature in the Dev protocol as by staking his/her token, the payer receives some form of consideration by receiving utility from the property owner—or active participant, while the latter receives staking rewards accrued over the staking period. The continuous temporal lockup of DEV is what creates scarcity and therefore value. Combined this creates a sustainable environment for activity generators.

There is a minuscule figure meant for DEV staking inflation but once all tokens are staked, no more will be issued.

DEV Markets and Performance

DEV is currently listed at UniSwap, an Ethereum decentralized exchange, where it is paired against Ethereum (ETH). It is currently trading at $0.20 a pop with an estimated supply of 1,907,968. The token’s total supply is 11,848,657.

This gives DEV a market capitalization of $393,889 and a 24-hour trading volume of $8,045.87 according to data streams from Coingecko.

At this spot rate, a wrapped Bitcoin (wBTC) can rake up 44701.33 DEV.

According to Etherscan, 321 addresses have generated 4,034 transfers.

One address holds roughly 84 percent (9,940,688.32366158) of the total token supply.

Ultimately, the team plans for an Initial Exchange Offering (IEO) in the coming weeks and the objective of listing the token as UniSwap is for the Dev Protocol community to get a hint of how the staking model works. 

Later, due to market forces that would have assigned the DEV token value, the team will list the token at a partner Launchpad as they raise funds.

Short-Term Catalysts

  • The Dev Protocol is still new and introduces a very novel staking model that can significantly magnify the rewards of early participants. Approximately place a $7,500 reward from a $5,000 stake even with a 1.5-minute lock-up period.
  • DEV has a low total supply of only 11.8 million
  • The team is actively talking to different investors and venture capitalists. With roughly 1.2 million DEV tokens in circulation, it leaves only 10.6 million tokens to be split with early investors and the rest to the community.
  • The team plans to launch an IEO in due course. Depending on the reception from the OSS community and dApp developers, there is a high probability that the token will be priced higher for public investors.
  • Stakes.social—the first dApp to create a generic UI that can smoothly perform staking using Dev Protocol, has been pre-released to developers. This site will elucidate how Staking works at the Dev protocol. To get a grasp of how things work, one must have an Ethereum web browser like MetaMask. Trust and Opera Wallets for mobile (Android and iOS) are also supported. From the site, 1,580 properties are already available for staking with Find Up drawing 32 percent of the user interest. 
  • DEV is currently present at UniSwap, a decentralized exchange. However, there are plans of listing the token in other exchanges of which Binance and Binance DEX cannot be exempted as the project gains traction. Already, DEV is in the top 10 when trading pairs are ranked by volumes. This hints of underlying demand.
  • The team continues to develop and add new features to the protocol. The DIP4 prototype is about to be released. Upon rollout, users won’t need to calculate your rewards as this will be visible in real-time.

Long-Term Catalysts

  • The team plans to monetize GitHub once they release the Khaos oracle solution. The marketplace will value your contribution to GitHub and distribute rewards accordingly. GitHub was acquired by Microsoft.
  • DEV is already listed at Coingecko. For a project that is yet to raise funds, this says a lot about its quality and what the future lies for this gem.
  • More properties continue to be added. There are hints that a government project will be one of the listed properties. This alone will set the ball rolling and legitimizes the project and its intention.
  • Dev Protocol is an idea forwarded by Japanese developers. Increasingly, investors continue to be shielded by maturing legislation around ICOs/blockchain projects. Besides, with a view of sustainability and building a community—core ideals of the Japanese, odds are this project will succeed since the sense of community is entrenched in Japanese culture.
  • The Project is sponsored by Microsoft. Microsoft employs sound valuation techniques, analyzing its fundamentals and risks before delving in. This alone is a strong indicator of the project’s potential and weight. Others include Neutrino. To become a sponsor, a firm/investor must stake 100 DEV.
  • Eventually, the project will migrate ownership to a fully decentralized model, reduce GAS fees, and rollout a project called Servant which allows fees to be paid in DEV.