Analyzing Protocol.Land’s Fair Fork and Token Model

Inspired by Arweave's fair fork concept, it came up with a bold idea: to arm "decentralization" from head to toe. This bold project is Protocol.Land, a decentralized source code management and code collaboration platform for the Arweave ecosystem, which supports developers to use it seamlessly in Git workflows, and generates on-chain snapshots of the code and stores them permanently in Arweave.

In order to unveil the mask of decentralization, Protocol.Land started from the "code layer" and proposed an innovative tokenization model, aiming to create a completely decentralized open source code ecosystem, providing an economic and governance foundation for decentralized projects.

Currently, most Web3 projects are still in the "partial decentralization" stage. Taking the most representative MakerDAO as an example, decentralization is actually only reflected in the application and governance layers, but the underlying code is still controlled by a few people, and there are still security risks brought by centralized management. However, decentralization of the code layer can be achieved through tokenized management, that is, delegating code management and introducing a viable economic incentive model.

The core concept of Protocol.Land is to create a decentralized open source ecosystem. By adopting the "fair fork" mechanism and the "curve bond token model", the code development and management process is made transparent and autonomous, and a sustainable incentive mechanism is built.

Different from the decision-making mechanism of "traditional" decentralized communities, Protocol.Land adopts the Fair Forks mechanism, an upgrade mechanism based on social consensus. This mechanism allows developers to freely submit improvements, and community members decide whether to adopt them independently, thus forming a virtuous cycle of "survival of the fittest".

When the community supports a fork, under the effect of the curve bond token model, developers can benefit from the appreciation of tokens, further incentivizing high-quality improvements.

Traditional projects usually provide incentives for early investors by pre-allocating tokens, which can easily lead to unfair benefits. Protocol.Land's approach is to introduce the Curve Bonded Token Model, which sets the relationship between token price and supply through smart contracts to ensure that prices adjust in real time with demand. This also means that no one owns tokens at the beginning, and all tokens are minted by contracts according to the "Curve Bonded Token Model". Developers can set the "initial price" and "target market value". When the developer's code plan is supported, supporters will buy in at the "initial price". Tokens are minted according to the model curve, and the supply increases, and the token price will also rise accordingly. When the token market value reaches the "target market value" and has sufficient liquidity, the token fund pool will be unlocked and put on the DEX for public trading. This process is also a smooth transition of tokens from the private fundraising stage to the public market stage.

Protocol.Land's tokenization model brings two key changes:

• Code-driven economic feedback:Through fair forks and token mechanisms, community members can support tokens based on the value of code improvements, simplifying the governance process and providing direct economic incentives for developers.

• Open source code is directly linked to community value: Traditional open source projects lack a continuous source of funding, and developers find it difficult to obtain long-term income. Protocol.Land's tokenization mechanism directly links code value with market demand, and developers can obtain continuous benefits based on the popularity of the code, thereby promoting the improvement of code quality.

However, Protocol.Land's approach to code tokenization is not a perfect solution. There are many potential risks and uncertainties, including the possible dilution of the value of old tokens, or the dispersion of resources due to "forking rampant", which makes the project lack a clear development direction. How to make the "new and old" coexist harmoniously is the challenge of the next stage. It can only be said that Protocol.Land provides a new way of thinking for the decentralization of the code layer.