Locked staking is an important change in my opinion and a must have for this project to stimulate long term holding and less selling pressure. Nobody is forced to lock their staking if they don’t want to.
My proposal is that we use an unlock period and make a difference in APR and APY like they do at Revault Network. If you choose APR you have an x-time of lock-up period before you can unstake it.
If you choose APY you must keep it locked. If you wish to unstake, your unlock period starts.
APR and APY amounts are just made up for now, also lockup-days are made up. It’s just to give you an idea of the possibilities. I tried to make sense with the amounts and lock up periods.
APR = Not compounding, with a simple lock-up period after you stake it.
APY = Compounding, but must be locked at all time. If you want to unstake you enter an unlock period.
- Bronze: 10k APR (0 days lock-up) or 22,5k APY (full lock with an unlock period of 10 days)
- Silver: 12,5k APR (30 days lock-up) or 28k APY (full lock with an unlock period of 30 days)
- Gold: 20,5k APR (60 days lock-up) or 46k APY (full lock with an unlock period of 60 days)
- Platinum: 44k APR (120 days lock-up) or 99k APY (full lock with an unlock period of 120 days)
If you are staking with APY and you enter the unlock period, your APY turns into APR and the corresponding percentage for the remaining unlock period. I think this doesnt need an explanation.
If you unstake early, before the unlock period has ended you pay a 25% fee.
What happens with that fee?.
- Either that gets shared among the other holders as an extra reward for holding
- OR it gets burned.
- OR it is send to the treasury.
- OR a combination of the options above.
Next to this there should be a % of the airdrops you receive depending on the tier you are in and if you are staking APR or APY.
At a certain, unknown moment a snapshot is made and only people that meet the requirements are eligible for the airdrop. To incentivise people for staking longer, their share of the airdrop will be larger when they do so.
Lets say that the Gold tier is eligible for 100% of their initial share if you stake with the APY.
Bronze: APR: no airdrop. APY: 20% of their inital share.
Silver: APR: 25%. APY: 50%
Gold: APR: 75%. APY 100%.
Platinum: APR: 125%. APY:150%
The longer you commit yourself to the project, the more APY you get, the better the airdrop rewards.
The exact math is something that an expert can look at. I’m not even close to an expert in this matter but I think the basic idea is pretty clear.