In the past year, many of our PathDAO community members were enjoying the upgraded staking pools. For the first year of staking, we’ve dedicated 100,000,000 $PATH. The rewards of these pools across Ethereum and Polygon are ending on Jan 11 2023 per PIP-4 (PIP-4: Staking contract upgrade).
There are ~50,000,000 $PATH remaining in the allocation for long-term holding compensation / staking. (https://pathdao.gitbook.io/pathdao/value-accrual-to-usdpath/token-distribution).
Option A: Let staking end and not renew the rewards.
The tokens would be placed in the treasury would be remain unspent or “locked” out of circulation. Until there is significant use for them to drive up exponential value for $PATH holders. (E.g in our Play platform growth, if a dollar of $PATH used brings back 5 dollars worth of sustained purchase, that’s when we can justify using this treasury stack.)
- Providing staking rewards in this market would not generate any new form of demand for $PATH, but just create more supply of tokens into circulation.
- Provides more gunpowder to bootstrap user growth on the products we are creating.
Option B: Extend rewards through an upgrade to the staking module.
A new single-sided staking contract will be launched with increased flexibility and longevity. Locking of principal will be from 1 week to 260 weeks, where longer locks will get exponential benefits and higher staking weightage multiplier:
0 weeks / flexible = 0%
52 weeks = 65%
104 weeks = 150%
156 weeks = 300%
208 weeks = 500%
260 weeks = 700%
Reward subsidy proposed for year 2 will be 5% of total token supply (50,000,000 $PATH) based on the current APRs. Future rewards post year 2 will be adjusted on a yearly basis depending on DAO revenues and non-$PATH staking rewards that might roll out in the coming years.
Vesting of rewards will still follow the current mechanism:1 year vesting upon claiming of rewards.
Amendment 1: New pool will be created in Polygon only (not Ethereum) to reduce gas fees.
• Option A: Let staking end and not renew the rewards
• Option B: Extend rewards through an upgrade to the staking module
No additional budget required.
PIP-9 will proceed in the following manner:
- This proposal will be open for discussion until 16 Jan 2023, 6AM EST
- After the discussion concluded and any possible adjustments have been made, the proposal will be up for voting on Snapshot. This link will be provided in due course
- The snapshot voting will last for 120 hours after it goes live
- After the voting concludes and if the proposal is accepted by the token holders, the proposal will be executed
Thanks in advance for weighing in.