✍️Staking
Last updated
Last updated
The staking mechanism in Reform is designed for dedicated holders who are invested in the ecosystem's success. To reward their commitment, greater returns are provided for those staking their tokens over extended periods.
Various staking options grant full control, including flexible staking and lock-up durations from one to five years. The staker receives higher rewards for longer staking periods. Daily 0.05% of all tokens within the Staking Treasury are distributed amongst the stakers. Moreover, staking is essential for securing voting power within the DAO.
Individuals can stake their tokens in their preferred time slots and through two different methods:
Single Side Staking (SSS) -> $RFRM
Liquidity Pool Staking (LPS) -> $ETH/$RFRM
If you decide to participate in SSS, your $RFRM tokens will be swapped for $eRFRM, which represents your locked $RFRM. This allows you to earn staking rewards and grants you voting rights within the Reform ecosystem. We prioritize dedicated individuals to vote, hence the requirement of staking. Furthermore, any staking rewards will also be disbursed in $eRFRM.
70% of the daily reward pool is allocated to stakers in the SSS pool, factoring in their proportional holdings and lock-up duration. The SSS directly locks the tokens in the staking contract via the dashboard. When locking in the SSS pool users will receive $eRFRM in return.
Participants determine the lock-up period, and rewards are calculated based on the staking weight system below:
Flexible staking = weight 1 for each $RFRM
1-year lock = weight 1.5 for each $RFRM
2-year lock = weight 2 for each $RFRM
3-year lock = weight 2.5 for each $RFRM
4-year lock = weight 3.5 for each $RFRM
5-year lock = weight 5 for each $RFRM
30% of the total rewards allocated from the staking contract is allocated to the LPS pool. The LPS pool is created to garner more liquidity for the $ETH/$RFRM pair in a decentralized way. LPS staking will always be flexible since there are no options for locking.
Staking rewards are subject to a one-year lock-up period before being distributed to the staker's wallet. The staking rewards will be converted in $eRFRM which can be used in the governance of Reform DAO.
