In our recent announcement, we have introduced our fourth governance vote, aiming to transition from a buyback model to a staking model. This proposal involves the distribution of rewards from the community fund to cNETA/NETA stakers, with the ultimate goal of providing a consistent share of rewards to our valued supporters.
Introduction
This article delves into the proposed staking mechanism, carefully designed for long-term sustainability.
cNETA and NETA Breakdown
Presently, there are 2 cBTC and 36,000 ERG available for distribution. NETA has about 200 million stakable tokens, while cNETA offers around 400 million stakable tokens. As both cNETA and NETA share a 1:1 ratio in revenue sharing and governance, we expect a total of 600 million tokens that could be staked. With 66% of these tokens in cNETA, 66% of rewards will be allocated to cNETA stakers, and similarly, 33% of rewards will go to NETA stakers.
As of the current market conditions, BTC is valued at $35,132, resulting in a total of $70,264 for the 2 cBTC. ERG, valued at $1.02, contributes to a total of $36,720 for distribution. Consequently, the 2 cBTC rewards will be fully dedicated to cNETA stakers, while the 36,000 ERG rewards will be allocated to NETA stakers.
Monthly Rewards
As previously communicated, these rewards will span 12 months, with the anticipation that revenue from the cBTC protocol will suffice to maintain consistent rewards for stakers beyond this period. For cNETA stakers, this translates to 2 cBTC over 1 year, equivalent to 0.166 BTC monthly, valued at $5,833. NETA stakers will receive 36,000 ERG distributed over 1 year, amounting to 3,000 ERG each month, valued at approximately $3,000.
cNETA Portal
Staking cNETA on Cardano involves using our dedicated portal. We continuously capture snapshots throughout the month to calculate the staked cNETA. In the first month, a snapshot will be taken, and, for example, a user staking 1 million cNETA if there are 10 million total staked cNETA can claim 10% of the 0.166 BTC monthly reward, equivalent to 0.0166 or $583.33. These rewards will be eligible for claiming on TosiDrop within the initial 2 weeks of the second month. Distribution will occur within 2 weeks of each staking month ending.
NETA Portal
For NETA stakers on Ergo, 3,000 ERG will be airdropped monthly. Users will earn a percentage based on the total staked supply. For instance, if 10 million NETA is staked and a user stakes 1 million NETA, they will be airdropped 300 ERG each month.
Final Remarks
We express our sincere gratitude to our community for your steadfast support.
We eagerly anticipate the upcoming governance vote to distribute ~350,000 ADA value to cNETA/NETA stakers, as we strive to grow our lead as the #1 Bitcoin wrapping protocol on Cardano.
Following this, we plan to release our upcoming roadmap, highlighting our v2 development, as we pursue the creation of the most decentralized Bitcoin wrapping protocol in existence.
