Variable system of staking interest rates that takes into account governance participation rates, number of votes, etc.

6mos ago
2 Comments
Content
AI Summary
Reply
Up
Share
Comments

my current favorite staking/governance model is Hydration's. The staking rewards rate is the same for everyone, but your staking rewards vest faster if you participate in governance. So people who vote frequently and with large conviction earn "action points" faster unlocking their staking rewards so they can compound them. But what if someone wants to unstake their tokens and sell them? Staking itself does not lock tokens. Only governance voting with conviction locks tokens. So if someone staked their tokens and never voted they're still earning staking rewards, but if they withdraw their stake then they forfeit any staking rewards that haven't vested yet. So people can't say "my tokens are locked for 4 years because I staked them!"
--spaz

Edited

Reply
Up 3