🪙Staking
You can stake GTON in the GTON Capital app here: 📺 https://cli.gton.capital/ Tokens are distributed according to the parameters previously voted upon by the community: GTON staking with 22.32% fixed APR with daily reward harvesting.
Example: Every 100 staked GTON will generate ~2 GTON for the staker every month, with reward distribution happening each block, i.e. ~1 per second.
How to harvest rewards?
Once you add GTON to staking, sGTON is being minted that represents your GTON harvest balance. - You can withdraw GTON from staking or increase the staking balance at any time. - You can withdraw your rewards in sGTON as GTON by calling harvest command once per day. When you harvest, sGTON converts into GTON automatically. - You can also reinvest your harvested GTON by sending it to staking in order to generate more rewards, so your sGTON balance will be increased.
Why is Staking needed?
To let holders keep and accumulate GTON over time: accumulation as the basic use case.
Tokens being put in staking will reduce the circulating supply, thus making GTON a deflationary currency.
At a later stage, staking will be used for governance and block mining consensus in GCNet.
Staking is also a tool for designing flexible and scalable governance models and incentivization systems such as delegated governance.
Staking will be used in the upcoming "growth hacking" strategies such as referral or ambassador programs.
Staking is a sustainable revenue model for system contributors.
How to find a sustainable APY?
First of all, the parameters are not hard-coded and can be redefined by the DAO at any time based on the ongoing market dynamics, product use cases, or any other consideration.
GC is, first and foremost, an ecosystem of products, with a goal of eventually transforming into GCNet (L1). If we apply statistics, the APY must be comparable to the staking value of the DeFi tokens and L1 staking parameters:
Based on https://www.stakingrewards.com/ data, the average of CAKE (60% APY), FTM (10%), BNB (19%), SOL (7%) yields 25% APY for GTON.
25% APY equals to 22.23% APR according to https://www.aprtoapy.com/
With 25% APY, a GTON holder who staked 1000 GTONs will receive 250 GTONs by the end of a year.
How much should we allocate for Staking rewards?
According to the 🧬PW v1.x DAO vote, we agreed to have ~25% circulating supply at the end of the period (20 epochs). Therefore, the circulating supply will be 0.25·21mln = 5.25mln GTONs. 25% of this amount can be released in the form of staking rewards, which gives us 1.3 mln GTONs (~6% of TS) allocated for Staking (max allocation, most likely will be less).
Will APY be fixed, meaning no dilution with new staking deposits coming?
Yes, APY will be fixed until the next ⚜️GC-🏛DAO vote (ideally in 20 epochs).
What is sGTON?
sGTON is the staked GTON - a transferable token for voting/transfer purposes.
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