Value Distribution Protocol (VDP)
23 May 2015 - This project won first prize at Hackcoin 2015, Hong Kongs's first blockchain hackathon.
VDP is a simple protocol that defines how value should be divided amongst various stakeholders.
VDP Configuration Files
The core element of the protocol is the VDP configuration file, which defines stakeholders and their relative value allocation.
shares of a stakeholder are relative to its sibling stakeholders. In the above example, the sibling stakeholders
marcoleong each have 1 share, which means they split 50% of the value attributed to
contributors, which itself is 97% of the overall value.
Stakeholders can have their value paid directly to
cryptocurrency addresses, such as
bitcoin, or according to separate VDP files linked via the
url keyword. This effectively creates hyperlinked VDP files.
The simplicity of the protocol, coupled with the linking of VDP files is very powerful.
VDP Payment Processors
A VDP file is not very useful unless it is actually used to make payments.
A VDP payment processor simply takes one or more VDP files as input, and for each incoming payment, splits the value according to those file(s) and makes actual outgoing payments as applicable.
Free/Libre Software (FLS) and Open Source Software (OSS) Funding
Many for-profit projects, especially software, depend on a variety of FLS/OSS projects. The creators of these businesses and projects know this, yet cannot identify who they should donate to, given the huge variety of projects and their contributors.
In this context VDP can be used to fairly distribute donations to the FLS/OSS stack. Each company simply needs to define their top-level stack, and link to the various projects' existing VDP files.
Each project will take care of maintaining their own VDP files, attributing credit to both sub-dependencies, as well as direct contributors.
In an ideal scenario, e-commerce sites can automatically donate small percentages of incoming sales, with each sale triggering a cascade of VDP payments resulting in automatic micropayments to the developers of the stack, who will benefit from a new recurring revenue stream.
This use case was presented at HackCoin 2015 and the prize money (1 BTC) was instantly distributed using a basic implementation of the protocol, which included a 3% donation towards both GPG and the Free Software Foundation.
- Add more examples and use cases
Value Distribution Protocol by Filipe Farinha is licensed under a Creative Commons Attribution 4.0 International License.