Curator Onboarding

What are Curation Markets?

A curation market is a model allowing actors in a network to effectively coordinate around shared goals and earn from the value they co-create.

Curation markets are specifically designed to reduce information asymmetries and to curate valuable information.

Decentralized Coordination of Labor and Capital.

The establishment of curation markets allows network participants to mint tokens in accordance with predefined rules without involving a centralized third party. The process of creating these tokens of value is not controlled by a specific entity. Instead, the bonding curve contract of the curation market is responsible for distributing (i.e minting) the tokens.

Core Components of Curation Markets.

Crypto communities that have an associated curation market enable users to coordinate their efforts towards a shared goal. This is accomplished by coordinating the work around a token that is minted to incentivize specific results, for instance the curation of new features.

The functional components of curation markets involve the following:

Continuous

Tokens can be minted and burned any time without time constraints

Autonomous

Bonding curve contracts calculate token prizes autonomously

Communal

A communal deposit is created to keep the amount paid for minted tokens

Proportional

Curators curate information with their proportional backing of tokens bonded to them

Curation Markets in The Graph Network.

The Graph Network utilizes curation markets to reduce information asymmetries about subgraphs. By incentivizing curators (i.e. token holders) to curate high-quality subgraphs, Indexers are able to index quality data sources much faster.

The Graph uses a curved bonding system that gives curators a gradient score of the relevance of their curation work. To accomplish this, Curators signal on attractive subgraphs by minting the curation shares of a particular subgraph. The earlier a curator signals on a subgraph by minting its curation shares, the greater the share of query fees they can earn.

We will have a look at how this exactly works in the next guide about curation shares.

Summary

Curation markets reduce information asymmetries and allow network participants to earn from the value they co-create. These markets allow the continuous minting and burning of tokens as well as the coordination of participants with no interference from centralized third parties.

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