✍️Staking

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

$eRFRM

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.

Single Side Staking (SSS)

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

Liquidity Pool Staking (LPS)

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.

Force Unlock

Staking rewards are subject to a one-year lock-up period before being distributed to the staker's wallet. Token holders can opt to claim rewards earlier by utilizing the Force Unlock feature. Fees paid for this feature will be contributed to the DAO's Bonding Treasury. The fee calculation for the Force Unlock feature can be illustrated with the following examples:

Example 1: If a token holder initiates a Forced Claim after 12 days, he/she will receive 12/365 of the rewards and the remaining will be donated to the Bonding Contract. In this specific scenario, your rewards from a total of 10,000 $RFRM will amount to 328 $RFRM, with the remainder being directed to the Bonding Treasury.

Example 2: If a token holder initiates a Forced Claim after 165 days, he/she will receive 165/365 of the rewards and the remaining will be donated to the Bonding Contract. In this specific scenario, your rewards from a total of 10,000 $RFRM will amount to 4520 $RFRM, with the remainder being directed to the Bonding Treasury.

Last updated