A Decentralized Protocol for Trustworthy and Consensus-Backed Data in Web3 Applications

Introduction

Powerloom Protocol is a decentralized data infrastructure that provides consensus-backed data solutions for Web3 applications. By aggregating on-chain and off-chain data and securing it with cryptographic proofs, the protocol ensures accuracy, transparency, and reliability. It is built to support developers, DAOs, institutions, and other participants by offering a composable data ecosystem that enables secure and verifiable data-driven applications.

The protocol operates through a network of specialized participants, including snapshotters, validators, curators, signallers, and consumers, each fulfilling distinct roles to maintain data integrity. Governance is decentralized, allowing token holders to participate in decision-making through a DAO framework. Powerloom also integrates with Layer 2 scaling solutions and cross-chain infrastructure, ensuring interoperability across blockchain networks.

What is Powerloom (POWER)?

Powerloom is a decentralized data protocol designed to provide reliable and consensus-backed data solutions for applications within the Web3 ecosystem. It aggregates on-chain and off-chain data and generates snapshots secured with cryptographic proofs. This approach ensures the accuracy and integrity of the data used in decentralized finance (DeFi), gaming, and other blockchain-based applications. Powerloom supports developers by providing tools and infrastructure to create efficient and transparent data-driven solutions.

The protocol is built to cater to the needs of developers, DAOs, institutions, and individuals by creating a composable data ecosystem. Its architecture supports various roles, including snapshotters, validators, curators, signallers, and consumers, each contributing to maintaining the platform’s reliability. Snapshotters collect and record blockchain events, while validators secure the network by verifying data. Curators maintain data markets, signallers allocate resources, and consumers use the data for applications such as dashboards, trading bots, and aggregators.

Development Team of Powerloom Protocol

Powerloom Protocol was co-founded by Swaroop Hegde and Anomit Ghosh, both of whom have extensive experience in the blockchain and decentralized technology sectors.

Swaroop Hegde serves as the Co-Founder and Chief Executive Officer (CEO) of Powerloom. Before establishing Powerloom, Hegde co-founded BlockVigil, a company that provides infrastructure solutions for decentralized applications. His work at BlockVigil involved developing tools to facilitate seamless interactions between decentralized applications and blockchain networks, which laid the groundwork for his initiatives at Powerloom.

Anomit Ghosh is the Co-Founder and Chief Technology Officer (CTO) of Powerloom. Ghosh also co-founded BlockVigil alongside Hegde, where he concentrated on the technical aspects of blockchain integration and infrastructure development. At Powerloom, Ghosh is responsible for designing and implementing the technical architecture of the protocol, ensuring its scalability, security, and efficiency.

Powerloom Protocol’s Main Features

Powerloom Protocol is designed to provide decentralized, consensus-backed data solutions that cater to the needs of Web3 applications, the protocol offers a range of features that ensure transparency, reliability, and flexibility for developers and end-users.

Snapshotter Nodes

Powerloom enables decentralized data aggregation through its network of snapshotter nodes. These nodes capture on-chain data transitions and event emissions, storing the information in a decentralized manner. This ensures that all data is peer-validated and accurate, making it suitable for applications that rely on high levels of data integrity. The snapshotter network also supports real-time data updates, allowing applications such as dashboards and trading bots to operate with live data from the blockchain.

Time-Series Data Queries

The protocol offers time-series data queries, enabling users to access datasets captured across precise periods. This is particularly useful for analytics, trend analysis, and other use cases that require historical data. Developers can further contribute to the platform by building custom data markets tailored to specific needs. These flexible data models allow for a wide variety of use cases, extending beyond basic transactional data.

Modular and Extensible Architecture

Powerloom’s modular and extensible architecture enables developers to easily add support for new data sources, transform data, and build on top of existing data pipelines. This flexibility allows the protocol to adapt to the evolving requirements of decentralized applications. Its composable data network supports the creation of complex dashboards, smart bots, advanced aggregators, and other innovative tools, providing a rich environment for data-driven applications.

Consensus-Backed Data

With its consensus-backed data, every data point generated by the protocol is peer-validated and backed by consensus, ensuring trust and transparency. The data is also stored on IPFS, further enhancing its reliability and accessibility. This feature is necessary for decentralized finance (DeFi) protocols, gaming applications, and other use cases that require verifiable data integrity.

The protocol facilitates efficient deployment of data applications by providing pre-computed, validated, and readily consumable APIs. These APIs are designed to integrate DeFi protocols and smart contracts, making it easier for developers to deploy their applications. Additionally, Powerloom enables the creation of verifiable and validated datasets that are scalable and credible, suitable for building dashboards and other data products. The network’s consensus-backed computation ensures that every piece of data is accurate and reliable.

Powerloom’s Technical Architecture

Powerloom Protocol is a decentralized data protocol designed to meet the data requirements of smart contract-based applications. Its architecture comprises several components and roles that work together to provide consensus-backed data to applications.

Snapshotter Nodes
Snapshotter nodes capture on-chain data transitions and event emissions. They observe blockchain events, record state changes, and store this information in a decentralized manner. To operate a snapshotter node, participants must stake Powerloom tokens. In return, they receive token rewards for their contributions.

Validators
Validators are responsible for validating blocks and securing the Prost Chain. They ensure the integrity of the data by verifying the information provided by snapshotter nodes. Validators also stake Powerloom tokens and earn rewards for their validation activities.

Curators
Curators develop new use cases, maintain existing data market implementations, and ensure the health of data markets. They receive incentives through grants, bounties, and initiatives managed by the Powerloom Foundation and market participants.

Signallers
Signallers indicate the importance of various data markets, ensuring that snapshotter resources are allocated appropriately. They stake Powerloom tokens and earn rewards for their signaling activities.

Consumers
Consumers are the end-users who use the data to build applications such as dashboards, bots, aggregators, and insights trackers. They pay fees in Powerloom tokens to access and maintain their data markets.

Watchmen
Watchmen ensure data accuracy by monitoring the network for malicious activity. They can challenge inaccurate data, and if a snapshotter node is found to have provided false information, it is penalized, and the watchman is rewarded. Watchmen must stake Powerloom tokens to challenge data and risk losing their stake if incorrect.

Data Flow and Consensus Mechanisms
The data flow within the Powerloom Protocol begins with snapshotter nodes capturing blockchain events and state transitions. Validators then validate this data to ensure its integrity. Curators manage and maintain the data markets, while signallers allocate resources based on the importance of different data markets. Consumers access this validated data to build their applications. Watchmen continuously monitor the network to maintain data accuracy and integrity.

What is the POWER Token?

The $POWER token serves multiple functions within the Powerloom ecosystem. Participants such as snapshotters, validators, curators, and signallers use $POWER tokens to engage in various roles and activities. For instance, snapshotters and validators are required to hold a certain amount of $POWER tokens to participate in the network, and they receive token rewards based on their performance and contributions. Curators and signallers, who contribute to data markets and provide insights, may also be rewarded with $POWER tokens based on the value and impact of their contributions.

The incentive structures are designed to promote active participation and ensure the integrity and reliability of the data within the Powerloom network. By aligning the interests of participants through token-based incentives, the protocol aims to maintain a decentralized and trustworthy data ecosystem.

POWER Token Utility

The $POWER token functions as the backbone of the Powerloom ecosystem, enabling various activities and interactions within the protocol. Its primary utilities include:

1. Staking: Participants such as snapshotters and validators must stake $POWER tokens to secure the network and validate data. This staking mechanism ensures accountability and incentivizes honest behavior.
2. Governance: Token holders can participate in decentralized governance through the DAO Treasury. This includes voting on proposals related to protocol upgrades, allocation of resources, and ecosystem developments.
3. Transaction Fees: Consumers use $POWER tokens to pay fees for accessing data markets and using the protocol’s services.
4. Incentives: $POWER tokens are distributed as rewards to participants who contribute to the protocol’s operations, such as validating data, curating markets, or signaling resource allocation.
5. Ecosystem Expansion: The tokens support partnerships, integrations, and other initiatives to expand the protocol’s reach and functionality.

POWER Supply and Allocation

The Powerloom ($POWER) token has a fixed total supply of 1 billion tokens, distributed across different categories to support the network’s long-term sustainability, operations, and ecosystem growth. The allocation breakdown is as follows:

• Network Incentives (27%) – 270 million $POWER tokens are reserved for network incentives, rewarding participants such as validators, snapshotters, and curators who contribute to the protocol’s operation. Currently, 2.38% of these tokens are unlocked, while 24.5% remain locked for gradual distribution over time.
• Team (20%) – 200 million tokens are allocated to the development team to ensure long-term commitment and project growth. These tokens are fully locked at this stage, with no initial unlock.
• Investor Allocation (13%) – 130 million tokens are designated for investors who supported the protocol’s early development. None of these tokens have been unlocked yet, ensuring a controlled distribution over time.
• DAO Treasury (11%) – 110 million tokens are allocated to the DAO treasury to fund future governance initiatives and ecosystem expansion. These tokens are currently locked, with a structured vesting schedule planned for their release.
• Community Incentives (10%) – 100 million tokens are reserved for initiatives that encourage user participation and engagement within the ecosystem. A portion of 1.50% has been unlocked, while 8.50% remains locked to be distributed as rewards over time.
• Reserve (9%) – 90 million tokens are reserved for potential future use. These tokens are fully locked and may be introduced into circulation based on ecosystem needs.

Powerloom Vesting Schedule

The vesting schedule for the Powerloom ($POWER) token is structured to ensure gradual token release while maintaining long-term sustainability. The total supply of 1 billion $POWER tokens is allocated across various categories, each with specific unlocking mechanisms.

• Network Incentives (27%): 270 million tokens are allocated to incentivizing participants, including snapshotters, validators, and curators. The vesting schedule indicates that 7.67% of these tokens are unlocked at the Token Generation Event (TGE), with the remaining portion released gradually over time.
• Team (20%): 200 million tokens are allocated to the development team. These tokens are initially locked, with no immediate unlock at TGE, ensuring long-term alignment between the team and the project’s growth.
• Investor Allocation (13%): 130 million tokens are allocated to investors. These tokens follow a vesting period with no initial unlock at TGE, preventing early sell-offs and ensuring stability.
• DAO Treasury (11%): 110 million tokens are reserved for decentralized governance and future ecosystem development. These tokens remain fully locked at TGE and will be unlocked progressively.
• Community Incentives (10%): 100 million tokens are allocated for community rewards and engagement. At TGE, 15% of these tokens are unlocked, with the remaining distributed over time to sustain engagement.
• Reserve (9%): 90 million tokens are held in reserve for potential future use. These tokens are fully locked at TGE and will be gradually introduced into circulation.
• Ecosystem Growth (6%): 60 million tokens support integrations, partnerships, and generally protocol expansion. These tokens start fully locked and will be released gradually.
• Liquidity (2%): 20 million tokens are allocated for ensuring market liquidity. These tokens are fully unlocked at TGE, allowing immediate access for trading and transactions.
• Advisors (2%): 20 million tokens are reserved for advisors who provide strategic guidance to the project. These tokens are locked at TGE and will follow a structured release schedule.

Powerloom Protocol Investors and Backers

Powerloom has secured funding from diverse investors, including venture capital firms, DAOs, and prominent individuals in the blockchain space. The investment structure consists of multiple tiers, reflecting the level of involvement and contribution of each entity.

• Blockchain Capital (Lead Investor) – A Tier 1 venture capital firm that led the investment round. Blockchain Capital is known for backing innovative blockchain projects and supporting early-stage Web3 infrastructure.
• Stani Kulechov (Angel Investor) – The founder of Aave, a leading decentralized finance (DeFi) protocol. His involvement suggests strong industry confidence in Powerloom’s potential and its role in the data aggregation and analytics sector.
• CMS Holdings (Tier 2, Venture) – A proprietary investment firm focusing on digital asset markets, providing both capital and strategic support for blockchain-based solutions.
• Fenbushi Capital (Tier 2, Venture) – Part of earliest blockchain-focused venture capital firms, investing in projects that advance decentralized ecosystems.
• The LAO (Tier 2, DAO) – A decentralized autonomous organization (DAO) that funds blockchain projects through community-driven investment.
• Double Peak (Tier 2, Venture) – A family office and investment firm focusing on blockchain and decentralized technologies.
• Divergence Ventures (Tier 2, Venture) – A venture capital fund investing in early-stage Web3 projects, including DeFi and infrastructure protocols.
• Mapleblock Capital (Tier 2, Venture) – A blockchain-focused investment firm funding innovative decentralized solutions.
• AU21 Capital (Tier 3, Venture) – A blockchain investment firm known for supporting high-growth projects in decentralized finance and infrastructure.
• LongHash Ventures (Tier 3, Venture) – A global blockchain investment firm that accelerates the adoption of Web3 technologies by funding early-stage projects.

Powerloom Ecosystem

Powerloom Ecosystem

Powerloom Protocol collaborates with various platforms to enhance its decentralized data network. The protocol includes integrations with Polygon zkEVM, Bungee by Socket, and Owlto Finance.

Polygon zkEVM

Polygon zkEVM is a Layer 2 scaling solution that uses zero-knowledge proofs to offer scalability while maintaining compatibility with the Ethereum Virtual Machine (EVM). This integration allows Powerloom to provide efficient and scalable data solutions for decentralized applications operating within the Ethereum ecosystem.

Bungee by Socket

Bungee, developed by Socket, is an application designed to facilitate efficient cross-chain asset transfers. By integrating with Bungee, Powerloom enables users to move assets across different blockchains cost-effectively, enhancing the protocol’s interoperability and user experience.

Owlto Finance

Owlto Finance is a decentralized cross-rollup bridge that offers secure and efficient services on Layer 2 solutions. The partnership with Owlto Finance allows Powerloom to provide users with reliable cross-rollup transactions, expanding the protocol’s reach and functionality within the decentralized finance landscape.

Powerloom Governance

Governance in Powerloom is structured to enable decentralized decision-making, ensuring that protocol upgrades, economic adjustments, and ecosystem expansions align with the interests of its stakeholders. The governance model uses the $POWER token, allowing token holders to participate in protocol-level decisions, propose changes, and vote on network improvements.

Governance Framework

Powerloom operates on a Decentralized Autonomous Organization (DAO) model, where the community makes governance decisions collectively. The DAO treasury, which holds 11% of the total $POWER token supply, is allocated for funding initiatives that contribute to the protocol’s long-term sustainability and development. Token holders can vote on how these funds are used, fostering transparency and community involvement.

Voting Mechanism

Governance participation is facilitated through a staking-based voting system, where token holders must stake $POWER to gain voting rights. The more tokens staked, the greater the voting power. This mechanism ensures that governance remains decentralized while prioritizing the voices of those with a vested interest in the protocol’s stability and growth. Votes can be cast on the following:

• Protocol upgrades and changes: Decisions on improvements to Powerloom’s architecture, consensus mechanisms, or security policies.
• Economic adjustments: Modifications to staking rewards, transaction fees, and incentive structures.
• Partnerships and integrations: Proposals for collaborations with other blockchain ecosystems and projects.
• Treasury fund allocation: Distribution of DAO treasury funds for research, development, and community initiatives.

Proposal Submission and Decision-Making Process

Governance proposals follow a structured process to ensure efficiency and transparency:

1. Proposal Submission – Any eligible $POWER holder can submit a governance proposal outlining the changes they wish to implement.
2. Discussion Period – The proposal is made available for community feedback and debate. Participants analyze potential risks, benefits, and technical considerations.
3. Voting Phase – Token holders stake $POWER to vote on the proposal. A quorum must be reached for the vote to be valid.
4. Implementation – If a proposal receives the required majority approval, it is scheduled for integration into the Powerloom network.

Role of Delegates

Powerloom also supports delegated governance, allowing users to delegate their voting power to trusted representatives. This feature enables broader participation, as users who may not have the technical expertise or time to engage in governance decisions can still influence protocol direction through chosen delegates.

Security and Governance Risks

To prevent governance attacks and manipulation, Powerloom incorporates security measures such as:

• Minimum staking requirements for proposal submissions to deter spam.
• Time-locked execution of approved proposals to allow for dispute resolution if necessary.
• Multi-signature approvals for treasury fund distributions to prevent unauthorized spending.

Decentralization and Community Involvement

Powerloom’s governance model prioritizes decentralization, ensuring that decision-making power is distributed across the community rather than concentrated in a single entity. The DAO-driven approach allows stakeholders to shape the protocol’s evolution, promoting long-term sustainability and network resilience.

Conclusion

Powerloom Protocol establishes a decentralized and consensus-backed data network designed to serve Web3 applications with integrity, reliability, and security. Through its structured roles, including snapshotters, validators, curators, signallers, and consumers, the protocol ensures accurate data aggregation and validation. The $POWER token underpins economic incentives, governance, and participation, aligning stakeholder interests with long-term ecosystem sustainability.

Governance is managed through a DAO structure, where token holders influence protocol development and treasury allocation. Powerloom integrates with Layer 2 scaling solutions, cross-chain transfer mechanisms, and decentralized financial tools to enhance its interoperability.