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Staking v2
Similar to the previous staking pools, we are incorporating a time-based element into the calculation for the liquidity mining rewards. This model perfectly rewards long-term stakers. After the launch of the new pools, all token holders (except locked tokens) are able to stake the tokens within two different vaults:
- MC → Single-sided staking pool. This pool will receive 20% of the liquidity mining rewards
- MC/ETH LP → Liquidity position of 50% MC and 50% ETH. This pool will receive 80% of the liquidity mining rewards
When staking your tokens, you can choose for a certain lockup, ranging from 0 (flexible) to 48 months (locked). The longer your MC tokens are locked up, the higher the respective share of the pool and, therefore, the higher your rewards. Additionally, when locking your tokens longer, the more voting power you hold.
Below you will find a couple of examples of how this mechanism will work. We calculated the differences between locking flexible, for 12 months, for 24 months and for 4 years:
Staker 1: Doesn’t want to lock the underlying tokens and therefore got a weight of 1*Staker 2: Locks their MC tokens for 12 months and therefore got a weight of 1.65Staker 3: Locks their MC tokens for 24 months and therefore got a weight of 2.5Staker 4: Locks their MC tokens for 48 months and therefore got a weight of 6
For security reasons, the minimum lock is 1 day. Thus flexible staking equals locking your tokens for 1 day, and therefore receives a weight of 1.
As voted in MIP-19, a total of 30,000,000 MC is utilized for staking rewards allocated starting on the 8th of November 2022 to November 2023. Prior to the year concluding, a new staking policy poll will occur determining the rewards for the upcoming year.
Last modified 1mo ago