Announcing: Variable Length Staking
Cadets,
It is time to reveal the 4th star from the galactic map. This one has been guessed correctly by many of you; indeed it’s something we’ve mentioned previously, and we’re sure it’ll be a crowd-pleaser.
Currently, when creating a new vault, you can choose to stake with STARS locked for 90 days or unlocked with a daily decay rate of 0.767%. That changes soon with variable-length staking.
Introducing Variable-length Staking
With this update, you will be able to choose between staking with STARS locked for 90, 180 or 360 days. The 180 days and 360 days options will give you an additional reward in STARS APR. This means the longer you stake, the better the reward. The accrued STARS will auto-compound daily — they will be added to the locked vault on a daily basis.
The STARS APR will be 15% for the 180 days option and 25% for the 360 days option. The APR will remain subject to change, based on the total amount of staked STARS and any unforeseen circumstances.
The platform update that contains Variable Length Staking is set to go live in the 2nd week of January 2023!
Important to note: APR stands for Annual Percentage Rate, which means that 15% and 25% are both annualized rates. If someone stakes for 180 days, their effective gain after 180 days will be 7.5%, or 15% after one year if they stake for 180 days twice in a row. This is a simplified representation, however; in practice, values (represented in APY) will be different thanks to compounding action.
Example 1:
John stakes 10,000 $STARS for 180 days and besides his Hydrazine generation, he will receive 15% STARS APR. Since his STARS rewards are auto-compounding, his effective APY is 16,18%. After 180 days, John will have 767.06 STARS as reward and he can then unlock his vault and claim both his initial stake & the rewarded STARS.
If John would then re-stake his 10,767.06 STARS for another 180 days, he will get 825.9 STARS as reward after 180 days. If we add the rewards from his first staking period to the rewards from his second staking period, he will have received a total of 1,592.96 STARS after 360 days.
Example 2:
David stakes 10,000 $STARS for 360 days and besides his Hydrazine generation, he will receive 25% STARS APR. Since his STARS rewards are auto-compounding, his effective APY is 28.39%. After 360 days, David will have 2,793.12 STARS as reward and he can then unlock his vault and claim both his initial stake & the rewarded STARS.
Example 3:
Sarah stakes 3,000 $STARS for 180 days and besides her Hydrazine generation, she will receive 15% STARS APR. Since her STARS rewards are auto-compounding, her effective APY is 16.18%. After 180 days, Sarah will have 230.12 STARS as reward and she can then unlock her vault and claim both her initial stake & the rewarded STARS
Migration
If you have STARS already staked and locked, don’t worry! With this update, everyone will be given the option of migrating their stake to a 180 days or 360 days vault right away.
This update, as part of our wider efforts to future-proof the StarLaunch platform, makes StarLaunch more interactive and brings utility back to the STARS token, but most importantly: it realigns incentives to properly reward the most loyal cadets.
About StarLaunch
StarLaunch is a unique and dynamic incubator and launchpad, connecting promising Solana projects to early supporters and a network of key partners. The StarLaunch team operates by prioritizing its community first. Starlaunch brings thoroughly vetted projects to its community and protects IDO participants with an in-house insurance program.
