Proposal to Update Staking Reward Boosters
Background
The current staking reward multiplier structure is as follows:
- Flexible staking: 1.0x
- 90-day fixed staking: 1.051x
- 360-day fixed staking: 1.16x
- 540-day fixed staking: 1.34x
- Locked token staking: 0.5x
These multipliers were initially designed based on the compounding effect of rewards, with a slight bias toward incentivizing long-term staking. However, given the current inflation rate and competitive staking models in the crypto market, the existing structure may not provide sufficient incentives for long-term commitment.
Proposal
I propose updating the staking reward multipliers to the following structure:
- Flexible staking: 1.0x
- 90-day fixed staking: 1.1x
- 360-day fixed staking: 1.5x
- 540-day fixed staking: 2.0x
- Locked token staking: 0.5x
This revision aims to significantly enhance incentives for long-term stakers while maintaining a balanced reward distribution. The proposed adjustments provide a more substantial differentiation between short-term and long-term commitments, aligning with industry best practices to attract and retain committed stakeholders.
Rationale
- Enhanced Long-Term Staking Incentives: The updated multipliers offer a more compelling reward structure for stakers willing to lock their tokens for extended periods, promoting network security and stability.
- Competitive Positioning: The revised staking model ensures that our staking mechanism remains competitive in the evolving crypto landscape, where higher multipliers for long-term staking are becoming more common.
- Inflation Neutrality: This proposal does not alter the overall token emission rate or inflation ratio, ensuring that the total supply dynamics remain unaffected while improving reward efficiency.
By implementing these changes, we can foster a stronger, more committed staking community while maintaining long term economic sustainability within the ecosystem.