Cancel all future V2 & V3 staking rewards and unlock all V2 stakers
Authors and contributors
First stage proposal before moving to a vote depending on community support.
- Cancel remaining V2 staking program. Accrued rewards will not be affected.
- No further staking programs will be implemented.
- All stakers will be unlocked from their current positions.
- Possible rewards to be set up through revenue sharing and Beam node validators.
Specification of the proposal
Further to the discussions in the telegram groups, I think that the community needs to vote on a proposal to cancel the current V2 staking rewards and future V3 staking programs. With the extensive rewards in V1 (100M tokens) and the current V2 (30M tokens), I believe that enough rewards have been given out to stakers and that we should cancel future V2 staking rewards immediately (or at the earliest opportunity depending on smart contract).
The main aim of this proposal is to stop the selling pressure that the staking program has created and allow the possibility for price appreciation. As we know we have been in a bear market for a while but the shoots of positive news is beginning to appear and BTC & ETH have rallied significantly from the lows. Cancelling all future V2 staking rewards will reduce the selling pressure (although not immediately) and hopefully allow for greater price appreciation when the ‘good’ times return.
For clarity, all existing rewards accrued in V2 will remain and no further rewards will be available should this proposal pass. Should this proposal pass then it would also ‘unlock’ everyone from their chosen lock periods and they would be free to do what they wish with their funds. This may create immediate selling pressure but I think it is better to get the pain over with than the slow bleed that it is at the moment.
This does not stop a proposal to re-start V2 at some point in the future or another staking program but sufficient rewards have been paid to date and we now need other options. This could be rewards are paid out as part of a revenue sharing program or with validator nodes on Beam (exciting!) This will mean that rewards are more sustainable as they are not being paid out of treasury $MC and active supporters will be greater rewarded.
The price performance of $MC has been very disappointing and the current market cap is below the amount we have in the DAO’s treasury. Stakers have up until this point been selling rewards and this has weighed heavily on the $MC price. They have been sufficiently rewarded and we do not need to continue to give away tokens for minimal effort and contribution to the DAO.
Staking rewards will continue to weigh heavily unless we stop V2 immediately and unlock everyone so they can decide whether they want to really support the DAO or sell and leave. Rewards will be available shortly through Beam and hopefully through a revenue sharing program which can be looked at when it will be sustainable.
It could be thought that it is unfair that 4 year stakers will have had a greater multiple APR than 1 year stakers, and while that may be true the stakers that locked for 4 years showed a greater degree of support to the DAO so they deserve the extra rewards they will have accrued.
The cons of this proposal is that we may see high volatility and people ‘dumping’ once they are unlocked, this could result in $MC performing badly in the short term but as I stated before, I think it is better to get any pain out of the way quickly rather than the slow bleed we have experienced up to this point.
The pros are that selling pressure will reduce and that hopefully when the market returns to a more bullish sentiment then the $MC tokenomics are in a better place for price appreciation.
No budget apart from the devs spending time to cease staking and unlock everyone.
Please comment with your thoughts on any changes that need to be made to the proposal. If this idea gets enough support then it can be moved onto a proposal.
I look forward to hearing all of your thoughts.