
Yanush Ali | February 14 2022
Yanush Ali | February 14 2022
Next steps to Main Net Staking: increasing APR
Main Net Staking is a deflationary staking model that rewards ORN holders from protocol fees. New tokens are never minted for rewards, and APR increases alongside protocol volume. In our next step towards full Main Net Staking, Governance Staking APR will be increased with the addition of several forms of protocol fees.
The higher APR will be available on February 16th, and will be bolstered by:
+ USDT terminal fees: Currently, users have the option to pay terminal fees in ORN (0.2%), ETH, BNB, and USDT (0.3%). 350K worth of USDT fees accumulated since launch will be used to market buy ORN and will be redistributed to governance stakers.
+ Unstaking fees: Unstaking fees were introduced in January to disincentivize unstaking, while incentivizing and further rewarding staking. Since unstaking January 30th, 13,000 ORN has been accrued. These accrued fees and future fees will be distributed to governance stakers.
+ 0.1% governance pool fees: Since the launch of Pre Main Net Staking, 0.1% pool fees have been collected via users voting on 5 ORN pools. All accumulated and future fees will be redistributed to governance stakers.
Accumulated and future fees will be redistributed to governance stakers to increase and maintain a higher APR for governance stakers ahead of full Main Net Staking - where all rewards will come from protocol fees. Meanwhile, the team will work to regularly rebalance the APR across ETH + BSC chains (and other chains post integration).
This move towards a deflationary staking model coincides with a number of ongoing methods to reduce total and circulating supply (including ORN committed from SolarFlare, trading fees, licensing fees and more) as we continue to build a deflationary token economy.