Introducing Single Staking for PWR

empoderat (72)in #pwr • 5 days ago

First of all, Happy New Year everyone!

Today I'm bringing something fresh and probably unexpected, which I'm sure everyone involved with PWR will surely enjoy.

If you've been following me for a while, you probably know that with my projects I like to stay agile, try to adapt to changes and play a lot of trial and error (until it works!).

This is one of those ''trial/error'' tries. You know, you can't stop grinding.

For that reason... let me introduuuuuuuuce... (!)

Single Staking for PWR!

Background & Current Situation.

For more than a year, the main way to introduce new PWR's into circulation has been via Hive Power delegations.

This way of working has been a success (and still is) since it allows a project to work in a semi-sustainable way and to involve participants with a more long-term vision (since you require Hive Power, and therefore have the handicap of the unstake of 3 months and a week).

This also comes with the obvious problem that you lose a lot of market exposure, as your product stops appealing to a lot of people.

Now that inflation coming through delegations is at very low levels + plus a good chunk of people undelegated I believe we are in a great place to make holding PWR more attractive.

Normally I would be against paying rewards ''for the sake of paying rewards''. But I think I have found a way to make the scheme extremely attractive to all participants. So I want to try it.

Let's get down into the matter.

Single Staking; Explained

Single staking isn't a new concept. You basically lock up tokens for a certain period of time and you get a % of interest. In many chains this is commonly known as ''Proof of Stake''.

This is also the case with PWR (not the PoS part though). You simply stake it and you get more of it.

Let's start for the first obvious question.

For how long I have to stake?
(rephrased): How long is the unstaking period?

And the answer is just one day. Yes, one (1).

You would stake PWR as you would do with any other Hive-Engine token. I recommend using the Beeswap interface .

pwr stakingdef.png

You can lock your PWR into the staking contract, reap the rewards for as long as you wish and when you're tired (or have your reasons to go) you can start the unstaking process and have 100% of your PWR bag fully liquid in 24 hours.

I don't like unnecessarily long unstaking times. These are more of a drawback for this project of mine which (for now) relies on keeping a peg. For that reason I kept that time as low as possible.

And the second one:

What do I get?

A variable APR paid hourly in PWR tokens (liquid).
More on this below:

Some Numbers...

PWR relies on the Mining Contract from Hive-Engine. This means that their 'staking' works in the same way as other Hive-Engine project with miners.

Only difference is that PWR itself IS the miner.

To start with, I have allocated 0.5 PWR every hour* as the ' staking reward ' to be shared among 20 'winners'.

*Every PWR staked it's a 'lottery ticket' eligible to receive it's fair share of this 0,5 PWR.
in practice this means the mining contract is spreading 20 tx hourly of 0,025 PWR each. More PWR staked increases the predictability of the expected average.
These PWR are freshly minted, so yes. This is adding to yearly inflation.
0,5 PWR/hour => 4380 PWR/year which relative to our circulating supply of 110K tokens represents a ~ 4% in added inflation.

Symbiotic-Tokenomics

so you're going to pay a ~4% to PWR holders, isn't that much of a deal isn't it?

Think about the following... there's not really that much available PWR out there. The biggest chunk out there is already farming the pool and PWR can't be staked and pooled at the same time.

And yes, is completely expected that the APR for staking will be initially high, but how much PWR is realistically out there available for staking? 10K? 20K PWR maybe? I would be frankly surprised to see +25K PWR staked right off the bat.

Which means...

This means market participants will have to choose between the liquidity pool or the single staking option.

~4K PWR rewards shared between 10K tokens staked => ~40% APR for stakers.
If 20K tokens staked => ~20% APR for stakers.
If 30K => ~13% APR

But at the same time... if LP's exit partially the pool it's APR increases proportionally.
Incentives at both sides or ''symbiotic-tokenomics'' as I like to call it.

Soft Launch already Live; full force in minus 7 days.

The feature is already LIVE and you can start staking your PWR.

As a preventive measure, I've staked 5K PWR from the Protocol Owned Liquidity to avoid someone staking 1 PWR and getting all the rewards for himself and getting infinity APR all of these hours (while I'm testing things with the machine functioning and while I prepare this post).

It would be fun tho, would make someone's day :)

TL:DR;

Staking for PWR enabled.
Current APR is ~80% (only 5K PWR staked).
In a few days and as more people stakes his PWR I'll remove those 5K PWR staked from the project (approx in ~7 days or by the next monthly report).

Consider this as a 'Soft launch'. Enjoy!