Staking
Stake FJO to earn platform rewards.
Last updated
Stake FJO to earn platform rewards.
Last updated
FJO staking allows token holders to accrue additional ownership in the protocol while also earning Fjord Points (or "FJOINTS"). FJO rewards are allocated as a floating percentage of the tokens bought back from fees the platform earns. Overall, the FJO-denominated rewards are geared to being sustainable and thus targets a modest APR (in FJO terms).
Staking rewards are allocated in weekly epochs, which means that new stakers typically must wait one or a few days before receiving rewards (of either FJO or FJOINTS). To dampen some of the effects of buyback front-running and overall align the staking mechanism for long-term aligned holders, staking a tranche of FJO starts a lock-up period of six weeks. During the lock-up period, a user cannot unstake locked tokens.
FJO rewards can be claimed anytime, which start a rewards vest. A staker can forgo the rewards vesting time for a 50% slash penalty. The rewards vest over a period of three weeks. This rewards penalty does not apply to the points mechanism, only FJO-denominated rewards. The slash penalty is redistributed amongst all other stakers proportionally.
As an addition to base FJO rewards, all stakers earn FJOINTS - a standard ERC-20 which may (or may not) unlock a plethora of benefits as the platform grows. For now, the immediate 'use case' of FJOINTS is to act as the intermediary for efficiently airdropping tokens from time to time through forms of 'gamification' (as explained further below).
FJOINTS, unlike FJO rewards, have a set rewards distribution schedule and is attuned to the same weekly epochs as the FJO-denominated rewards:
As denoted in the schedule, FJOINTS allocated per epoch experiences gradual reductions over time, starting from 100,000 FJOINTS per epoch and slowly approaches a minimum distribution of 25,000 per epoch starting in epoch 79.
From time to time, Fjord may collect a percentage of token supply from a project that launches on the platform. The percentage of terminal supply can range drastically but in general is no greater than 1%. Rather than airdropping a small percentage of tokens to a very large token holder base, FJOINTS holders can choose to allocate any number of FJOINTS they hold to receive their proportion of any one airdrop available through the Points Auction (detailed further down).
Key points of consideration as a FJOINTS holder/accumulator:
Infinite supply (mintable/burnable), but supply schedule for at least the first 100 epochs is defined.
No other FJOINTS outside of those allocated through the points schedule above will be minted.
Points successfully spent by a user in exchange for an airdrop are burned.
FJOINTS holders can choose to spend none, partial or all of their points on a single auction.
The only way to redeem any future non-FJO airdrops will be through FJOINTS.
The points auction process is straightforward. Users can spend, by depositing, any amount of points to redeem an airdrop, which will often contain terms for redeeming (i.e. vesting schedule and, more rarely, other qualifications for successful redemption like the completion of an activity on project token's website).
Key features:
Points can be freely deposited AND withdrawn in the deposit contract for one week
Once the deposit period ends, the points spent are burnt and the airdrop is received according to the specific terms of that airdrop (i.e. may be vested)
The pro-rata allocation for any given FJOINTS holder who deposits is given as:
Where,
P_t = FJOINTS a user allocates to an airdrop auction P_u = The total FJOINTS spent on the airdrop auction A_t = The total tokens being airdropped A_u = The pro-rata allocation of tokens a user receives
Thus, while a points auction is occuring, all points holders 'price' the value of the airdrop in terms of points. Because points have a defined 'scarcity' through the points schedule, users must choose between a few actions:
spend all points accumulated, forgoing being able to spend the same points on a different airdrop
spend no points accumulated, forgoing any one airdrop if the points/airdrop is perceived to be too high and/or the user thinks a better airdrop will be available later
spend a portion of points accumulated