How do people not understand giving more than 100% of the APY is unfeasable and will make the backed price diverge to zero?
I’m readin all these like incentive methods that include giving more APY than possible without creating a cascade of effects in the equations. After all with guaranteed APY that the protocol can’t necessarily meet all the time (no pun intended) that could lead to our backed price dropping to $0.
I’m down for some incentives THAT DONT TOUCH THE PROTOCOL (negatively). Like custom NFTs for every 30 days you’ve stayed staked so that the longest frog staked has the rarest commemorative NFT. Maybe even like a penalty of like percent of the increased for those who unstake before a season/halfyear/three seasons/ full year (In which case you could BURN their tokens taken with the penalties, increasing the backed price)
Penalty Schedule Example:
- Unstaking before 30 days (30% of gains?)
- Unstaking before 90 days (20% of gains?)
- Unstaking before 180 days (10% of gains?)
- Unstaking before 270 days (7% of gains?)
- Unstaking before 365 days (5% of gains?)
- Unstaking after 365 days: You are a Boss Frog Professional and you deserve a NFT of yourself dancing on on the TIMe you have made