Proposal for Expanding $CLOUD Token Use Cases in the Sanctum Ecosystem
Overview
This proposal outlines a series of use cases for the $CLOUD token, the governance and utility token of the Sanctum ecosystem. These use cases are designed to enhance the functionality of $CLOUD, expand its role within the ecosystem, and create new opportunities for token holders. The proposed changes would incentivize staking, introduce new services, and promote long-term engagement with the Sanctum platform.
1. Introduction of Liquid Staking Token (LST) for $CLOUD
Proposal: After staking is enabled, we should introduce a Liquid Staking Token (LST) for $CLOUD. This would allow users to stake their $CLOUD while still maintaining liquidity within the ecosystem. This means participants can use their LST for governance purposes, enhancing engagement while keeping liquidity available for other opportunities.
Rationale: Liquid staking solutions are what we're known for and are already widely adopted in other ecosystems like Ethereum and Cosmos, which helps balance governance participation and liquidity. An LST for $CLOUD will allow users to participate in governance decisions without losing the ability to transact or invest in other areas of the ecosystem.
2. Sanctum Debit Card with $CLOUD and LST Integration
Proposal: The upcoming Sanctum debit card should support payments in $CLOUD and LSTs, offering $CLOUD as an incentive for cashback rewards.
Rationale: Debit cards linked to crypto tokens are growing in popularity, such as Crypto.com’s debit card tied to their $CRO token. $CLOUD could follow a similar model, where the more tokens staked, the higher the rewards a user can receive. Offering different tiers of rewards based on staked $CLOUD will drive more users to stake their tokens, thus increasing liquidity and engagement with the token while promoting card usage.
3. Tiered Rewards Based on $CLOUD Staked
Proposal: Implement tiered reward levels for the Sanctum debit card based on how much $CLOUD a user has staked.
Rationale: This is similar to the tiered system used by Cronos, where more staked $CRO results in better rewards and perks. Introducing this will further incentivize $CLOUD staking while giving users additional reasons to hold their tokens for long-term benefits.
4. $CLOUD Requirement for Wonderland Season 2 Farming
Proposal: Require $CLOUD tokens to participate in the farming opportunities available in Wonderland Season 2.
Rationale: Tying $CLOUD to in-platform activities like Wonderland creates a direct link between token utility and platform growth. This would ensure that participants are committed to the Sanctum ecosystem and would further drive demand for $CLOUD as users must acquire and hold tokens to engage in lucrative farming activities.
5. LST Fees and Payouts in $CLOUD
Proposal: Fees associated with LST creation and management should be paid in $CLOUD rather than external tokens like SOL. Additionally, LST payouts should be made in $CLOUD tokens.
Rationale: Using $CLOUD for fees and payouts ensures that the token remains integral to the ecosystem's operations, thereby creating continuous demand. Transitioning from SOL or other external tokens to $CLOUD also reduces the need for external currency exchanges, simplifying user experience.
6. Refundable $CLOUD Deposit for LST Creation
Proposal: Introduce a refundable deposit in $CLOUD to create an LST. The size of the deposit can determine the payout structure for the LST, with non-profit organizations being exempt from this requirement.
Rationale: Requiring a refundable deposit for LST creation can act as a security measure, ensuring serious participants and minimizing spammy LSTs. Varying deposit levels based on potential payouts also introduces flexibility, allowing both small and large players to participate. Exempting non-profits helps foster goodwill within the community.
7. Enhanced Wonderland Profiles with Credit and Community Scores
Proposal: Expand Wonderland profiles to include credit, reputation, voting, and community involvement scores, with staked $CLOUD improving creditworthiness. A small fee or “rent” in $CLOUD should be required to maintain these profiles.
Rationale: Integrating credit and reputation scores can lead to new opportunities for users, such as loans or discounts based on their activity and $CLOUD holdings. Introducing a rent system ensures profiles remain active and contributes to the platform’s economy.
8. Decentralized Lending Based on Credit Scores
Proposal: Allow users to borrow from a user-funded bank based on their credit score, which factors in staked $CLOUD. This lending system would be a mixture of traditional loan models and overcollateralized DeFi loans.
Rationale: Offering more flexible borrowing options, especially ones tied to credit scores rather than just collateral, can drive financial inclusivity. By linking creditworthiness to $CLOUD staking, we encourage responsible token management and long-term engagement.
9. NFT Raffle System
Proposal: Create a raffle system where $CLOUD is exclusively used. Member created collections and vetted projects can donate NFTs in exchange for promotional exposure and anyone with $CLOUD can buy entries. 95%-99% of $CLOUD raised in the donated NFT raffles should be burned, with the remainder used for computing costs while verified members with a positive social score and active profile in good standing can create raffles and keep 90% of funds.
Rationale: Raffles create excitement and offer an engaging way for users to participate in the community. By burning the majority of $CLOUD raised, we create scarcity, which in turn supports the value of the token.
10. User-Driven Investment Fund
Proposal: Establish a community-driven investment fund where members contribute $CLOUD to invest in startups. Community voting would determine which projects receive funding and membership fees could be burned. [Commonwealth](https://app.joincommonwealth.xyz/funds/alpha-fund/projects/nexis) is a great example of what I'm suggesting, a partnership may even be an easier option as they already have the infrastructure and connections, we would have to make the integration backdoor as to keep the funds and voting exclusive to our community.
Rationale: This introduces another use case for $CLOUD, allowing token holders to participate in early-stage investments, further driving engagement and utility.
11. $CLOUD-Themed dVPN
Proposal: Build a $CLOUD-themed decentralized VPN (dVPN) using Sentinel dVPN blockchain and turnkey solutions. Payments for the service would be made in $CLOUD, with potential for bridging to IBC-enabled chains. I use this everyday, cost are about $1.50/month in DVPN tokens and it's fully decentralized so no one is tracking your usage like web2 vpns. [DogWifHat](https://www.sentinel.co/dapps) has their own branded dVPN through them already and it seems like a very great marketing tool because of how little work it takes to launch.
Rationale: A dVPN product branded with $CLOUD would increase the token’s visibility across a wider audience, particularly within the Cosmos ecosystem. It opens new doors for $CLOUD usage and adoption beyond the Sanctum platform.
Conclusion
This proposal outlines several new use cases for $CLOUD that would greatly enhance its utility and value within the Sanctum ecosystem. By incentivizing staking, expanding profile features, and integrating the token across new services like the debit card and dVPN, we can drive engagement, create more avenues for token usage, and ensure the long-term growth of the $CLOUD economy.
I welcome community feedback and suggestions on this proposal.