Introducing Heroglyphs: Is the moment for Ethereum inscriptions approaching when validator nodes can mint tokens?
HeroGlyphs aims to incentivize people to become full validators by giving them the ability to mint exclusive tokens that only they can create.Source: ELI5 of TLDR original Twitter
Author: ELI5 of TLDR
Compiled by: Deep Tide TechFlow
Introduction
While the Bitcoin inscription/rune projects attract significant attention, the Heroglyphs project on the Ethereum platform is opening up another unique token opportunity. This project not only challenges traditional token minting models but also contributes new ideas to Ethereum's decentralization.
The Heroglyphs project introduces the so-called "Elite Tokens" by granting complete validators exclusive minting rights. These tokens differ from the meme coins on the market as they represent actual value in network security and technical contributions.
As Ethereum gas fees decrease and expectations return to ETH, the Heroglyphs project may provide a new perspective.
The following is the full compilation.
What I mean is, would you rather buy tokens created by kings or tokens created by farmers?
This article will briefly explain Heroglyphs, which I believe will yield something better than runes.
HeroGlyphs is a new protocol on the Ethereum blockchain, designed not for us ordinary cryptocurrency enthusiasts, but for complete validators. Validators are those who keep Ethereum "alive."
HeroGlyphs allows complete validators to create (or mint) their special tokens, and only they can create such tokens.
The quantity will not be large; they will be "elite tokens," not some random meme coin or similar thing, but with deeper meaning and greater intent.
Ethereum faces the risk of centralization, which is not good in a decentralization-based industry. If there are three large validators holding most of the "power," we might encounter problems.
With liquid staking becoming increasingly popular, we have many "economic validators" who do not genuinely contribute to network security. These "economic validators" stake ETH merely for rewards, and the staked ETH is "managed" by a single protocol.
Even if these protocols have good intentions, centralization is not beneficial; centralization is centralization, and it brings multiple risks.
Therefore, HeroGlyphs is a protocol aimed at incentivizing people to become complete validators to decentralize the validator environment as much as possible.
Currently, if you do not have a large amount of ETH, becoming a complete validator seems unprofitable. Holding a significant amount of ETH increases the chances of being selected to confirm blocks and earn rewards.
Although the entire process of selecting validators is random, holders of large amounts of ETH can create multiple validator clients to increase their chances of being selected. Thus, in reality, liquid staking protocols and large validators are making Ethereum more centralized.
Now it's time for the HeroGlyphs project created by crypto masters, which hopes to incentivize people to become complete validators by granting them exclusive minting rights to tokens that only they can mint.
It's like having tokens created by those who control the network and ensure its continuous operation. I mean, currently, anyone can create a token. It actually just takes a few clicks of the mouse.
But HeroGlyphs opens a new avenue for token creation: elite tokens created by complete validators—those who genuinely protect network security.
Heroglyphs aims to increase additional revenue sources based on the speculation and Degen trends in cryptocurrency.
Everyone came to the cryptocurrency industry for speculation. How many of you have minted Heroglyphs tokens without understanding them? Don't be shy; admit it, we are all here fumbling around.
Okay, but how does all this work?
A randomly selected validator proposing a block can "inscribe" (like runes/Ordinals) some short data into the block. It can be anything, but up to 32 bytes.
The Heroglyphs protocol consists of two parts: one part for encoding information and the other for translating information.
It is challenging to fit all the information needed to create a token into 32 bytes, so we must establish some "identifiers."
These "identifiers" will be short tags that CM (validators with specific permissions) can rent and use to mint more tokens (and do other things related to token management and creation).
Yes, rent, not buy; it should operate based on the Herberger tax principle.
You rent it based on what you think its value is and pay that amount at specified intervals.
Do you think such a tag is worth 5 ETH? No problem. But if someone else thinks it's worth more and is willing to pay more, then say goodbye to your tag.
But how will validators earn rewards? According to the project white paper, all complete validators will receive the same rewards, and minting rewards will be distributed evenly.
This is an interesting approach, both for us ordinary crypto investors and for the entire Ethereum network, as it will enhance its security.
Not long ago, Ethereum co-founder Vitalik wrote an article about meme coins and their potential,
By investing in NFTs/Memes from Ethereum validator nodes, you will contribute to a better decentralized future. Complete validators are heroes, but so are you!
