Stargaze's rewards not only creators, but also rewards curators for discovering popular content.
Curation happens via an incentivized upvoting mechanism based on quadratic voting (QV). QV enables expressing intensity, so you can "like" something more than once. However, each subsequent "like" costs exponentially more. This causing users to budget their votes, giving more value to the curation process.
According to QV, the cost required for each vote grows quadratically:
1 upvote = 1 STARS
2 upvotes = 4 STARS
3 upvotes = 9 STARS
4 upvotes = 16 STARS
After a 24 hour curation period, voting funds are returned. Posts selected by the CurationDAO (see below) receive additional rewards.
CurationDAO is membership-based DAO made up of a subset of Stargaze users. Initially the DAO will be made up of the founding team, and will grow to include high quality content curators. Posts voted on by members of the DAO get curation rewards. Users that vote on posts that have been selected by the DAO receive rewards in proportion to their votes.
CurationDAO is funded by chain inflation. On each block, 50% of newly minted STARS go to fund the DAO. Once a day, all funds received are distributed to users that voted on posts selected by the DAO.
CurationDAO rewards flow into the bonding curve for each creator coin. Therefore, creator coins derive value from content creation and curation.
At the end of the day, 5% of DAO funds are distributed to members in proportion to their participation.