I would like to propose the following:
Staking is a great way to:
a) provide yield in return for securing the network to delegators
b) remove tokens from exchanges or “active” circulating supply - to hodl as a yield bearing asset
The 2nd consideration above is a vital component in the supply/demand dynamics for a number of reasons. As shown on https://www.stakingrewards.com/ - you can see in the image below that a large contingent of the top 20 CMC tokens show up here at the top of the charts - when searched by Staking Ratio.
I vividly remember looking through these charts in late 2021. There was a high correlation between the top tokens by market cap and the high % of circulating supply that was staked.
If you recall, favourable yields were all available on blue chip cryptos such as DOT, SOL, ADA, BNB, ETH2.0 and many more. This is not a coincidence.
The higher the % of tokens from circulating supply that is “locked” in staking, generating yield, the more we see a mitigation in sell pressure on downside price action and the more the price can be free to move to exponential valuations due to the limitation in supply on exchanges.
The way we could all benefit from this as a community is to offer a voluntary tiered staking option on top of the current variable rate staking option. Therefore those that wish to hodl like myself for a longer duration will benefit from a higher yield for our commited service to the network andf those that wish to remain more fluid with their investment will receive a lesser fee for their reduced commitment.
The existing variable rate comes with a mandatory 21 day unlock period and since we are migrating to an open chain format - my proposal is to offer additional voluntary lock ups as following…
EXISTING STAKING OPTION:
- 21 day mandatory unlock period (5-20% variable)
ADDITIONAL VOLUNTARY OPTIONS:
3 month lock up followed by a 21 day mandatory unlock -
ADDITIONAL REWARD pro rata fixed 2%APY on top of the 5-20% variable rate
6 month lock up followed by a 21 day mandatory unlock -
ADDITIONAL REWARD pro rata fixed 4%APY on top of the 5-20% variable rate
12 month lock up followed by a 21 day mandatory unlock -
ADDITIONAL REWARD pro rata fixed 6%APY on top of the 5-20% variable rate
I would be grateful if people could communicate their considerations and thoughts (pros/cons) in a respectful and professional manner. These posts are done all in support and favour of our beloved $QRDO.
Let’s get yielding and building.