As more and more blockchains transition to using Proof of Stake as their primary consensus mechanism, the importance of validators becomes more apparent. The security of entire digital economies, people's assets, and global currencies rely on the security of the chain, which at its core is guaranteed by the number of tokens that are staked by validators. These staked tokens not only come from validators but also from everyday users of the network. In the current system there is very little distinguishing between validators other than the APY that each provides and their name (a.k.a. their brand). We aim to solve this issue with Ptolemy by creating a reputation score that is tied to a validator's DID using data found both on and off chain.
This pain point was discovered as our club, being validators on many chains such as Evmos, wanted a way to earn more delegations through putting in more effort into pushing the community forward. After talking with other university blockchain clubs, we discovered that the space was seriously lacking the UI and data aggregation processes to correlate delegations with engagement and involvement in a community.
We confirmed this issue by realizing our shared experiences as users of these protocols: when deciding which validators to delegate our tokens to on Osmosis we really had no way of choosing between validators other than judging based on APY looking them up on Twitter to see what they did for the community.
Ptolemy calculates a reputation score based on a number of factors and ties this score to validators on chain using Sonr's DID module. These factors include both on-chain and off-chain metrics. We fetch on-chain validator data Cosmoscan and assign each validator a reputation score based on number of blocks proposed, governance votes, amount of delegators, and voting power, and create and evaluate a Validator based on a mathematical formula that normalized data gives them a score between 0-5. Our project includes not only the equation to arrive at this score but also a web app to showcase what a delegation UI would look like when including this reputation score. We also include mock data that ties data from social media platforms to highlight a validator's engagement with the community, such as Reddit, Twitter, and Discord, although this carries less weight than other factors.
First, we started with a design doc, laying out all the features. Next, we built out the design in Figma, looking at different Defi protocols for inspiration. Then we started coding.
We built it using Sonr as our management system for DIDs, React, and Chakra for the front end, and the backend in GoLang.
Integrating the Sonr API was quite difficult, we had to hop on call with an Engineer from the team to work through the bug. We ended up having to use the GoLang API instead of the Flutr SDK. During the ideating phase, we had to figure out what off-chain data was useful for choosing between validators.
We are proud of learning a new technology stack from the ground up in the form of the Sonr DID system and integrating it into a much-needed application in the blockchain space. We are also proud of the fact that we focused on deeply understanding the validator reputation issue so that our solution would be comprehensive in its coverage.
We learned how to bring together diverse areas of software to build a product that requires so many different moving components. We also learned how to look through many sets of documentation and learn what we minimally needed to hack out what we wanted to build within the time frame. Lastly, we also learned to efficiently bring together these different components in one final product that justice to each of their individual complexities.
Ptolemy is named in honor of the eponymous 2nd Century scientist who generated a system to chart the world in the form of longitude/latitude which illuminated the geography world. In a similar way, we hope to bring more light to the decision making process of directing delegations. Beyond this hackathon, we want to include more important metrics such as validator downtime, jail time, slashing history, and history of APY over a certain time period. Given more time, we could have fetched this data from an indexing service similar to The Graph. We also want to flesh out the onboarding process for validators to include signing into different social media platforms so we can fetch data to determine their engagement with communities, rather than using mock data. A huge feature for the app that we didn't have time to build out was staking directly on our platform, which would have involved an integration with Keplr wallet and the staking contracts on each of the appchains that we chose.
Besides these staking related features, we also had many ideas to make the reputation score a bigger component of everyone's on chain identity. The idea of a reputation score has huge network effects in the sense that as more users and protocols use it, the more significance it holds. Imagine a future where lending protocols, DEXes, liquidity mining programs, etc. all take into account your on-chain reputation score to further align incentives by rewarding good actors and slashing malicious ones. As more protocols integrate it, the more power it holds and the more seriously users will manage their reputation score. Beyond this, we want to build out an API that also allows developers to integrate our score into their own decentralized apps.
All this is to work towards a future where Ptolemy will fully encapsulate the power of DID’s in order to create a more transparent world for users that are delegating their tokens.