Proposal: allow staking of sMC

Proposals Proposal repository
1

Allow staking of sMC

Authors
RSCrypto

Summary
At the moment, it is not possible to stake sMC rewards until these have vested and turned into “regular” MC tokens. The purpose of this proposal is to allow DAO members to stake sMCs, while maintaining all other vesting restrictions.

Abstract
At the moment, sMC tokens are idle during their 12-month vesting period. As described in the official docs, “[to] align incentives of all stakeholders within the DAO, [MC] included vesting for all categories except the public distribution”.

With this goal in mind, allowing the staking of vesting rewards (i.e. sMC) will enhance the alignment of incentives, as lock up periods for rewards will effectively extend even further. The minimum period of 12 months vesting will be kept.

Motivation
The motivation for this proposal is multi-faceted:

  1. Incentivize stakeholders to commit their capital to the DAO longer term.
  2. Support the tokenomics of MC, as sMC will effectively vest over a longer period of time (assuming a portion of sMC are staked, and that a portion of the staked sMCs are locked)
  3. Allow MC holders/stakers to compound returns, instead of having rewards remain idle for the duration of the vesting period.

Budget
No budgetary requirements.

Rationale
Please refer to the Motivation section

Copyright
Copyright and related rights waived via Creative Commons CCO

Thank you for your attention. Looking forward to a fruitful discussion and to getting perspectives and insights of fellow MC stakeholders.

1 Like
3

Closed the topic for now because of the low quality of the proposal.

Please understand that we do stimulate everyone to propose their ideas, but they have to be well described with arguments well weighted, pros and cons. MIP1, 2 and 3 can be seen as an example of a well drafted proposal.