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Atlo Rating

Atlo investors will be rated according to their participation in Atlo and the wider Terra Ecosystem. This ensures those investing the time, effort and capital to participate in IDOs are fairly rewarded. The Atlo Rating calculates the quality of each investor by analysing their investment participation on an on-going basis.

The objectives of the Atlo Rating is to:

  • Incentivise positive, outcomes-based participation in the platform
  • Incentivise forward-looking investor behaviours
  • Provide a balanced mechanism that prevents abuse of a single metric to beat the system
  • Allow new participants the opportunity to work towards a good rating and for poor and dormant participants to be demoted

Metrics

The Atlo Rating is a score of 5 key metrics to measure favourable participation in Atlo Protocol. These are described below.

Staking

Governance is fundamental to Atlo Protocol. By staking $ATLO tokens, participants are contributing to the protocol because staking is required to vote on proposals. The objectives of the staking metric are:

  • Incentivise staking of $ATLO
  • The Atlo Rating rewards long term stakers over short term stakers
  • Ensure that anyone new to Atlo feels they have an opportunity to participate if they commit the effort to participate
  • Discourage those that attempt to participate in staking with large volumes of $ATLO at the last minute to take part in IDOs

The Staking metric will perform the following:

  • After posting a staking transaction, the amount of $ATLO staked will count towards a person’s Atlo rating by ramping up over time
  • The ramp up period will be a linear 20 days where, after one day, 1/20 of the amount of Atlo staked will count towards their Atlo Rating. After 20 days, the full amount of Atlo staked will count towards their Atlo Rating

Voting

Similarly to the staking metric, voting is essential to the governance process of Atlo Protocol and therefore participants will be measured on their voting activity on proposals and incentivised to do so through their Atlo Rating. The objectives of the voting metric are:

  • Incentivise voting on governance proposals
  • The Atlo Rating rewards voting participation

The Voting metric will perform the following:

  • The number of votes a person casts on a proposal will count towards their Atlo rating.
  • To incentivize continued participation in Atlo Protocol by voting, the voting metric will only include votes cast in the previous 60 days

Voting Quality

Governance requires high quality proposals as well as high quality voting processes. This ensures that votes are cast on proposals where the result of the vote and the outcome of the proposal are measured. The objectives of the voting quality metric are:

  • Incentivise voting on governance proposals
  • The Atlo Rating rewards those that actively research and make informed decisions and then cast high quality votes on proposals

The Voting Quality metric will perform the following:

  • The initial metric (RaiseTarget) will be based on the sell out of the launch i.e. on the full raise target being funded by investors. Those that voted in favour of a token launch proposal that does reach RaiseTarget at the launch will be rewarded, and those that voted against a token launch proposal that does not reach RaiseTarget will be rewarded
  • To incentivize continued participation in Atlo Protocol, the voting quality metric will only include quality of votes cast in the previous 60 days

Contribution to Community Warchest

Participants can deposit UST into Atlo Protocol and will be able to earn Anchor interest on those deposits. They are able to assign a portion of their Anchor interest earned to the Community Warchest. The objectives of the Contribution to Community Warchest metric are:

  • Incentivise contributions to the community warchest
  • The Atlo Rating rewards those that contribute to the community warchest from the interest earned on deposited UST in Atlo

The Contribution to Community Warchest metric will perform the following:

  • Track the amount of UST committed to the Community Warchest
  • To incentivize continued contributions to the Community Warchest, the Contribution to Community Warchest metric will include the total UST contributed in the previous 60 days

Investor Quality

Participants can contribute positively to the wider Ecosystem and so should be rewarded accordingly for doing so. The objectives of the Investor Quality metric are:

  • Incentivise investors to have a long term outlook for the Blockchain Ecosystem
  • The Atlo Rating rewards those for positive contributions to other Blockchain products, including actions like staking in other protocols.

The Investor Quality metric will perform the following:

  • The initial version will track staking activities in Terra and Anchor Protocols
  • Future versions can include investors' behaviours in markets like NFTs and investor behaviour cross chain

The Atlo Rating is then a total of the above:

\[ \begin{align} Atlo Rating = Staking + Voting + VoteQuality + CommunityWarchest \\ + InvestorQuality \end{align} \]

Each metric will be evenly weighted but each weighting can be changed through governance. The weighting ensures that there can not be significant manipulation of one metric to gain an advantage over others.

Penalties

To ensure that every participant has a fair chance to develop a good Atlo Rating by focusing on the five metrics above, negative or dormant activity will be penalised and the investor’s Atlo Rating will be negatively impacted.

Unstaking

The objectives of the unstaking penalty are:

  • Disincentivise people to unstake $ATLO
  • Reduce a person’s Atlo Rating and in turn reduce the related benefits of a good Atlo Rating
  • Ensure the penalty does not discourage people from ever coming back to Atlo but requires improving their Atlo Rating through the same process as everyone else
  • Discourage people from unstaking large volumes of $ATLO immediately after a launch window has closed

The Unstaking penalty will perform the following:

  • After posting an unstaking transaction, the amount of $ATLO unstaked will penalise a person’s Atlo rating but the impact of the penalty will ramp down over time. The penalty will be applied to the staking metric and proportionately the other four Atlo Rating metrics
  • The ramp down period will be a linear 20 days where, on day one, 20/20 of the amount of Atlo unstaked will penalise their Atlo Rating. After 20 days, the penalty from unstaking will no longer impact their Atlo Rating
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