Staking NFTs for 5D Token on 5D.co
Published in
4 min readMay 16, 2021
As promised in our last article, 5D began offering NFT staking rewards! This is a huge milestone for us, as the initial token supply goes directly to those who support the artists on the platform; users who buy NFTs and stake them in the Foundry will earn 5D Token (5DT) in return. Read on for more information about how this works.
Details of the Staking Program
2% of the total network supply is distributed over a 2 month period for those who stake their NFTs. All NFTs from the first three drops of Jahan Loh, SSUR and Stash are eligible for the staking program.
- An equal weight is given to each of the 3 artist drops. So, 2% divided by 3 artists = 0.66% of the total network tokens is reserved as rewards for each of the artist drops.
- Every NFT is allotted a fixed number of 5D tokens (5DT). Note that this differs significantly from other staking and liquidity mining programs, where tokens are given out as a percentage of the entire pool that the staker (or Liquidity Provider) holds and is tracked by an “LP” token.
- This staking program lasts indefinitely for the first 3 artist drops. This means that any NFT holder will be able to stake their NFTs for a continuous period of two months at any point in time (forever) and claim the associated 5DT reward.
The Rewards
Below are the precise rewards (in 5DT) allotted per NFT of each of the categories within each of the collections.
1. Jahan Loh — Moonwalk Collection
- Phobos — 12,121
- Ganymede — 38,095
- Callisto — 109,333
2. SSUR — Eternally Bonded Collection
- Bronze — 4,300
- Gold — 174,600
- Physical — 2,333,333
3. STASH — Alter Ego Collection
- Red — 466
- Blue — 1,334
- Southpaw — 13,333
Commonly asked questions:
- Why is each NFT allotted a fixed number of 5DT rewards? — Aligned with our principles of democratizing access and truly creating an open platform for the art community to govern over time, we wanted to ensure that early supporters of the platform are not penalized for staking later. The action of staking shows that the first NFT holders are taking steps towards active governance in the platform and hence the rewards should be distributed fairly as such, since every NFT buyer is equally important to the platform in its early days.
- Why does the staking program last indefinitely for the first 3 Artist drops? — Referencing question #1 above, the staking program is an opportunity for early supporters of the platform to get familiar with actions that demonstrate active participation in the 5D platform, such as interacting with the Foundry contract and getting accustomed to the user interface of Metamask / wallet-providers (which can be an initial challenge to crypto newcomers).
- Can I unstake once I stake? — Not until the 2 month staking period ends! Once this 2 month period is over, the user who stakes has to call an unlock function to unstake from the platform. Our goal for the staking program is to make it as simple as possible for users who are unfamiliar with crypto projects, especially those in the art communities, to participate on the platform. By having a limited set of actions that can be performed, 5D hopes to provide a friendly experience for anyone. In addition, by requiring a 2 month staking period, we hope to reduce speculation on the NFTs themselves in the early stages and encourage users to focus on governance and other ideas for the platform.
- Can I claim my 5DT staking rewards at any time? — Yes, users can claim accumulated 5DT after a specific time period, at any time before the end of the 2 month staking period; during this period, rewards will continue to accumulate regardless of when a user decides to claim them. This is to allow users to begin participating in governance as soon as the governance functionality is ready; users should not have to wait in order to participate!
- How were the 5DT rewards per NFT determined? — For each of the artist drops, 0.66% of the network supply (6.6 million 5DT) was allotted across all the NFTs. For the first two drops, the NFTs were weighted as a proportion of the total proceeds from NFT sales for that specific artist drop. The 5DT split was then calculated per NFT. For the Stash drop, it was suspected that user behavior might change because of the token announcement. As a result, the 5DT rewards per NFT were fixed pre-sale under the assumption that all Stash NFTs are sold.
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